Hi All

Abbreviation

Hello everyone I have just joined this forum and have spent some happy time looking at all of the topics. I wonder if anyone can offer some advice. My husband is an estate agent (don't all boo!) so I bet you can all imagine what has happened to his salary lately. He is not one of those ones that is horribly rich. He has a basic salary of £15000 per annum, everything else is commission. Last year before tax he earnt in total £40,000. We have entered that uncomfortable zone of being house rich cash poor. We have a mortgage with Abbey for £86,000 current value of house about £350,000-£400,000. Mortgage payments are £700 per month and it is a straight repayment mortgage due to end in 15 years Because of the housing market over the last 4 months my husband has brought home £3,500. This has not been enough to pay the essentials and we are about £1,500 overdrawn. (limit £2,000). We contacted Abbey to see if we could have a loan secured against our property and thought there would be no problem because of the amount of equity we have in our house. We were refused as Abbey now only takes half of a persons commission into consideration when calculating how much they can loan. We have had a mortgage for over 30 years between us and have never once missed a payment or been refused a loan. Our special rate deal is coming to an end in July with Abbey and we are scared that we may now find ourselves in the positon of not being able to negotiate a different mortgage because we have been refused this loan. We have no credit card balances or any other loans. Any advice please!!!!

peb

UNless you want to post your SOA (see sticky at top of forum) to see if we can find ways for you to cut back in general I can't really help. It is a problem a lot of people are facing.

Can you get help with tax credits with the downturn or alternatively can he find a different job?

Otherwise it pay be helpful posting on the MOrtgage Board for help with the fixed rate coming to an end.

rayday2

Do you have additional borrowing such as unsecured loans, credit cards etc because you could reduce the amounts you pay to them but it will damage your credit history but you keep your home with no more secured lending on it.

RAS

Could you go interest only for a while - and start looking for another job?

Abbreviation

Thanks all will post on mortgage as well. We have no credit cards or loans. I don't think he could change jobs now as he is 52 not a good time to change. I have looked into tax credits and any help is based on your earnings for last year when the housing market was not in freefall. We have never been big spenders. Don't go on holidays, don't go out much, no take-aways etc. I have checked price comparison sites for gas electricity. Our only extra really is virgin broadband, phone and TV. Husband has not been bringing home enough for several months now, used to be a couple of hundred under what we needed now it is over a £1000. If this continues we will be forced to sell our home which as we have been there over 20 years seems a real shame.

dancingfairy

I would definitely post an SOA anyway see if there is any room for maneouvre anywhere.
Would check you are on the cheapest electric/gas/tv/mobile/insurances.
Would see if you are owed any money from utilites companies re overpaying if you are paying by standing order.
Would do a spending diary and just check you are not spending where you are not aware on the 'odd' coke/choc bar from vending machines/pint at the pub/magazine/cd/clothes/cigarettes - whatever.
Would also see if you can get you food bill down as much as possible by
a) meal planning
b) batch cooking ie cooking double portions and freezing half
c) shopping online so not tempted with things and using codes for cheap delivery or
d) try aldi/lidl etc for things as many people have found them to be cheaper and good quality
e) go through the cupboards and post on the OldStyle board to see what you can make from what's in your cuboards.

Try ebaying/car booting/internet surveys etc.
Are you working? can you get a job - even part time would help if you can.

Um I'm sure there's loads more suggestions but that's loads to get you started.

Good Luck with it all.

Skint_Catt

Can't help but (((HUGS))) to you. I'm just about to leave an Estate Agency practice but have been attending redundancy meetings the last few weeks - horrible. Your husband sounds lucky(ish!) - he's got a basic of £15k which is higher than any of ours by quite a few thousand, though I know its tough.

RAS

Abbreviation wrote: »

Husband has not been bringing home enough for several months now, used to be a couple of hundred under what we needed now it is over a £1000. If this continues we will be forced to sell our home which as we have been there over 20 years seems a real shame.

You are a long way from that, so please get realistic now rather than fatalistic.

If you need what he brings home plus £1000, then there is money to be saved somewhere in the scheme of things. So do post up the SOA. it may be that shifting monet round the CCs or just paying them off in the proper order will make a difference.

As a starter to get the OD under control, if you have lived in the same house for 20 years, you must have loads of stuff knocking around to e-bay or take to a car boot sale? You could amke a £1000 selling old books, CDs and other kit.

Do you work? If not, get out there as you will not pay tax. A part-time job bringinging in £5K per year would be the same as OH getting £8K of commisison, so that is your best option.

Do you have room for a lodger, student or language student? Could be tax free even if you are working.