remortgage for bad debtor

shirlw10

I have a mortgage for £100,000 on a house worth approximately £170,000. Having got into some financial difficulties in the last couple of years I have cut costs everywhere I can and am still struggling. I have a mortgage arrears of approx £5000 and a payplan debt of £5000 (payplan took over all my credit cards). I would like to clear these arrears and wondered if the best thing I could do is to remortgage adding this on to my mortgage to make my monthly payments more affordable.

herbiesjp

IF you are struggling on your current scenario, I'm not sure that adding £5k to your mortgage is going to the the solution to your problem - as by adding this to the mortgage would make your monthlypayments more expensive and not more affordable (i'm guessing that with Payplan you are making reduced payments to the cards)

When did these arrears occur? Have you missed any mortgage payments in the last 12 months? What is your gross annual salary?

Do you have an up to date copy of your credit file?

Who is your current lender and what interest rate are you on (are you tied in at all)?

Sorry for all the questions, but without these, it will be difficult to give you any pointers

shirlw10

The arrears happened in the last 12 months and yes I have missed payments.

I have no copy of credit file.

Mortgage with Bank of Scotland and am tied in until October this year.

The reason I am wondering whethr to up my mortgage is because I am paying an extra £100 per month to try to pay the arrears and also pay Payplan £170 a month so thought I would be in a better position if I got rid of those debts.

shirlw10

The arrears happened in the last 12 months and yes I have missed payments.

I have no copy of credit file.

Mortgage with Bank of Scotland and am tied in until October this year.

The reason I am wondering whethr to up my mortgage is because I am paying an extra £100 per month to try to pay the arrears and also pay Payplan £170 a month so thought I would be in a better position if I got rid of those debts.

maninthestreet

How can increasing your mortgage help with the existing mortgage arrears?
Are you thinking of re-mortgaging with a new lender?

shirlw10

If I were to add my mortgage arrears and paypal debt which total approximately £10000 to my mortgage then my mortgage payments would be slightly less because I wouldn't be adding on to pay my arrears and my paypal monthly payment of £170 would be gone and I would be able to fulfil my monthly mortgage payment and also live a bit easier. Do you know if I would be able to remortgage or any ideas of what else I could do?

Would I be better getting a loan to pay off debts? If yes where would I get one due to my bad history?

I just thought that due to the equity in my house that would be my best option.