asked a thousand times I am sure - I am a newbie and in the ***t

Robflh

depressed_of_lincolnshire wrote: »

Ok, and I stand to be shot down, but surely the reason I can sell my endowment is because someone wants the value of it? I always understood that the value is not really until the end. With fours years to go and a cost of about £2.5k in payments it would be crazy to jump now (Tin hat on)

Firstly, you never need a tin hat when I reply to an OP. Politely point out that a particular word may not have been the best one to use and people jump on you.

The catch 22 is indeed the fact that you are so close to the mature date. Endowments build up slowly over time and may have yearly bonuses added to them but it is the terminal bonus/es that can make a big difference. In all provability, surrendering or selling them would not be a wise thing to do but as I am not a financial advisor the only way to know for sure is to ask an IFA.

As far as I know, there is no reason why you cannot remortgage the property with a repayment mortgage and still keep the endowments running. You would be paying more each month but you would be paying less for the credit cards and the loans.

A new mortgage would be for £36,000 plus £10,500 for the extension, which is £46,500. The BOS, FD and MS debts come to £14,000 (£272 a month) and that makes a grand total of £60,500.

My Mortgage is a tracker mortgage, which is 1% above the base rate (5.4%) and it is linked to my bank account. The account is in the red by £950 (overdraft) but there were two tackers. One had reviews every few years and they would cost me about £300 each time and the other had no reviews but it is linked to a bank account, which is in the red. £300 every few years or nothing every few years, guess which one I chose.

A 25-year mortgage for £60,500 @ 6.4% would mean payments of £404.73.
http://www.moneymadeclear.fsa.gov.uk/tools.aspx?Tool=mortgage_calculator
Current mortgage payment £580 minus two endowments (£47 & £27) equals £506.
That makes a saving of £101.27 on the mortgage plus £272 that you are not paying on three debts, which makes a total saving of £373.23. I must have made a mistake somewhere but I cannot see where.

Unfortunately, the simplest solution to your problem is to sell the caravan. It would free up £220 a month and leave you with over £300 each month. Some people on here would give their right arm to have that amount spare every month. As soon as the business picks up and the money starts to come in you can get another caravan.

depressed_of_lincolnshire

I was doing okay until the second paragraph. Then you descended into some local dialect that I can see but not understand. It appeared to involve some of these £ and a few of % a dash of IFA and some brackets liberally spread.


The mortgage payment for £580 is for the £36k original mortgage, £10.5k second mortgage and a third repayment (I learned by then that endowment is twinned with grief city!!) mortgage of £25k for an extension to the house for an office for work. This is set to end same time as the endowments.

Ok this is going to sound ridiculous but I really dont want to take on a 25 year mortgage when I only have 5 to go. If I could hold out for the 5 years things would be okay. The mortgage gone would free up the £580 two of the loans would be finished and normal service would be resumed, except for the part where I dont do credit cards EVER EVER AGAIN!!!!

Before coming on here I thought if I could get a loan over 10 years of £35k pay most of the killer bits of I could survive on the incomings. Of course I cant find anywhere to loan it. Naive of me perhaps.


Maybe the best option is a knitted balaclava and a sawn off. Except knowing my luck I'd Gordon Brown would have been in before me and cleared the bank out!

Jelly_Babies

You are absolutely in the right place when you recognise that you don't want to take on a 25 year mortgage with only 5 to go - would be complete madness.

Keep doing everything you are doing, being positive, looking for alternatives and being resourceful and you will do it. As you rightly see consolidation is simply not the answer for you :T

p.s. if you do do the baleaclav, I know a good lawyer :rolleyes:

Buffythedebtslayer

Hang in there, pretty annoying advice I know, I am astounded by the stories on here and by how much money I have stopped wasting on things I didn't even realise I was spending. you seem pretty resourceful (and very funny) so just keep going *grits teeth* it will happen.

xx

CharliesAngel

Welcome depressed of lincolnshire....

as always you've had some good advice... i'd say don't forget the small steps.... get yourself over to the old style board for great tips on batch cooking and general day to day savings... i've got my weekly grocery shop (me and 2 cats) down to £11 and am now watching the debt decrease for the first time in ages...

... keep plugging at it...

CA x

depressed_of_lincolnshire

Thanks guys, girls and whatever you call people in between nowadays. It changes so often I find it better to cough than say the word that way you cant be sued.

Daft thing is I am savvy at buying for my business. I am savvy at mobile phone deals. Great when it comes to looking for cars at the right price. Open my wallet and my brain goes to jelly. We dont spend a lot as a family and we dont do processed foods and expensive take aways. My wife bakes, including bread. We are trad meat and veg eaters. Apart from the odd bottle of red plonk (for medicinal purposes only) and we always select that by year, scent and content. Ensuring that it has the right amount of nutty/enamel and pink cauliflower traces in the body ( and its less than £3.99) so its not a case of keeping up with the Joneses (No offence to anyone on here called Jones') or living a Posh and Becks lifestyle on a Ricky Butcher wage (Apologies to Ricky if he's on the forum - but seeing as you've had a nice touch and got back in eastenders you wont be here for long. Unless of course its time for you to stretch your acting skills - harry Hill misses you)

I will beat this (Anyone got a spare £35k?)

depressed_of_lincolnshire

Just applied online for a Virgin Card didnt tell any fibs and I'm in so I am going to stick it to Bank of Scotland and transfer the 8.5k - they get naff all from now on. If I pay at least the £150 a month that should save me at least £1500 when you take off there initial charge - AND the card gets destroyed on arrival.

That feels better - think I'll have a gamble on betfair to celebrate.......










JOKE

Robflh

Hi depressed of lincolnshire

Your SOA is a bit cluttered, it has a lot of information that is not required and this makes it difficult for me to see the information I need.

Mortgage £72,000 @ £580 a month. New mortgage would be £86,000 @ £575.32 plus the endowment payments of £74. The net saving per month would be around £200 and this would give you a monthly surplus of about £300 a month.

You do realise that you do have a surplus of £95 per month and not a deficit of £175. The road tax is £30 and not £300, which means you are paying out £1,513 and not £1,783.

You would take out a new 25-year mortgage but you would not be paying it for that long. The endowments payout in four years time £23,000 and £10,500 (£34.5k). Put that money away and earn as much interest on it as you can. Save as much as you can each month and in a few years time you would have enough money to pay off the mortgage.

Using the Virgin card to pay off the, I am not sure if it is a loan or a credit card, £8,500 will save you money because you will be paying no interest but you will still have to make payments on the card and at 2.5% of the outstanding balance, that will be £212.15. That is more then you are currently paying for that debt.

As I said before, the simplest solution is to the sell the caravan and buy another one in a couple of year’s time, four years at the most.

Jelly_Babies

Hi D-O-L,

I have a Virgin Card and with my BT and the minimum payment is £25 a month, but I do overpay it - so not sure it is definately 2.25% of your balance, that may apply after your 0% rate ends. I do know I had to pay more the first time as I paid the BT fee and then it went to minimum.

But I am prattling on, maybe you should ask them.............if you are bothered that is

beer_tins

I would also agree with selling the caravan, I'm sure you can go on holiday for less than the 2640 a year it will save you and you can use whatever the sale brings in to throw at the debt.

I also agree with the idea to move to a new mortgage. If the long term puts you off, choose one that is flexible about letting you make overpayments to allow you to pay it off quicker when things are looking a bit rosier. You could even decide to remortgage to a 5 year mortgage at that time if you chose to.