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Help! Debt & Shared Ownership Mortagage Advice Please.
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Becks999
Posts: 5 Forumite
:eek: Hello,
I'm in a pickle regarding my property. I purchased 25% of a shared ownership flat in september 07 and by Sep 08 I would like to buy the remaining 75%. This is possible. (I wish i would've bought the whole 100% now but at the time everyone was advising to do this.-25% for 1 year to ease me in then 75% the following year this is because i'm young) However i;ve spent alot on the flat/bought car and managed to rack up £15,000 debt over 6 cards and £5000 with 2 catalogues. I'm financially ok as i have a good job and have ebay as a sideline. My question is would it be possibe to consolidate my £20,000 debts with my 75% mortgage? I'm with Leeds (who are fab for 1st timers by the way) Also is this the best option? to clear all my debt and just have one payment? Anyone been there, done it?
All advice welcome!!
Thanks in advance
Becks
I'm in a pickle regarding my property. I purchased 25% of a shared ownership flat in september 07 and by Sep 08 I would like to buy the remaining 75%. This is possible. (I wish i would've bought the whole 100% now but at the time everyone was advising to do this.-25% for 1 year to ease me in then 75% the following year this is because i'm young) However i;ve spent alot on the flat/bought car and managed to rack up £15,000 debt over 6 cards and £5000 with 2 catalogues. I'm financially ok as i have a good job and have ebay as a sideline. My question is would it be possibe to consolidate my £20,000 debts with my 75% mortgage? I'm with Leeds (who are fab for 1st timers by the way) Also is this the best option? to clear all my debt and just have one payment? Anyone been there, done it?
All advice welcome!!
Thanks in advance
Becks
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Comments
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Hi BEcks,
Someone will be along shortly to offer some (hopefully) helpful advice but good luck!!
BenSavings as of April 2023 Savings account - £26460.50(14474.88)Current account - £2140.24(4576.79)Total - £28600.74(19051.67) £1010 (£65pm CS/BS) £250 CS/BS/JS0 -
Would the mortgage be somehow tied to the original valuation, and is it a new build?0
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Hello,
It is a new-build. Northern Counties Own It.
The property will be re-evaluated in September for the remaining 75%.. Ideally i'd like it all with leeds.
I plan to stay for 2/3 years then rent out and by a small house.
Thanks in advance.
Becks :eek:
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Hello,
It is a new-build. Northern Counties Own It.
The property will be re-evaluated in September for the remaining 75%.. Ideally i'd like it all with leeds.
I plan to stay for 2/3 years then rent out and by a small house.
Thanks in advance.
Becks :eek:
Chances are it's gone down in value, and is still likely to, have you compared other new builds nearby? You probably did yourself a favour only purchasing 25%. Whether you'd beable to consolidate your loan now in the current mortgage climate is a different matter. I don't think it is a good idea to consolidate your loan on the mortgage, because the market is very shaky right now even if you could. I'd be tempted to deal with this as a seperate debt, but try to consolidate them on the best rate cards that you have, especially the catalogue accounts. You also need to ask yourself how in control you will be with your money if this gets sorted so it's easier for you. You could dangerously fall into the trap again. Really try and work the figures out e.g how much more you'd be paying for your debts by paying for them over the long term.0 -
Thanks for the advice.
The only problem i have is that i'm unable to get a seperate consolidation loan.
I have great credit as i've always paid for everything on time, however, i have a low credit score (at the mo) as i already have £20,000 unsecured debt in my name. (i was unaware till recentely that a person can only have up to a certain amount of unsecured debt at any one time.
Even if i cut up my cards, and vowed never to use them again- no-one would be able to give mean an additional unsecured loan to pay the cards off as i'd still have the £20,000 available. It's catch 22. :eek:
I don't want a secured loan so i think the only viable (& probably only) option is to tie in the debt with the mortgage?
I said earlier i'm ok financially - and this is true - i can pay all my payments on time - the problem i have is the stress of juggling all the different payments at different times of the month - every month. In total i have 27 direct debits and 5 standing orders and it's making me grey.
I just want a £20,000 loan to pay back over 2 years and by 2010 be debt free. This is also the year i would like to rent out the flat and buy a small house.
And i'll only be 25 by then - i know it's optimistic but you have to be, don't you! :rotfl:
Any advice would be much appreciated.
Thanks in advance.
Becks9990 -
Leaving aside the possibility that the property has gone down in value then as I understand it OP wants to borrow the other 75% to buy the 75% share AND borrow another £20K, which will put the loan to value ratio well in excess of 100%.
I'm not a mortgage expert, but I thought 100% had finished, so its not going to happen.
OP will simply have to pay off the debts by saving as much as she can from her income each month to do this.
Sorry but the lesson is simply don't rack up huge credit card debts you can't repay and don't buy things from catalogues.RICHARD WEBSTER
As a retired conveyancing solicitor I believe the information given in the post to be useful assuming any properties concerned are in England/Wales but I accept no liability for it.0 -
With Respect, I never actually disclosed the value of my property.
As for your comment
'
as I understand it OP wants to borrow the other 75% to but the 75% share AND borrow another £20K, which will put the loan to value ratio well in excess of 100%.'
In Fact My flat is worth £200k, It's gone up in value (I had it valued at £210k back in April) as the area i purchased in - i researched well and since moving here the area has had a lot of money thrown at it, e.g New School - both primary and secondary, Along with New apartments and a park.
As for your comment
'Sorry but the lesson is simply don't rack up huge credit card debts you can't repay and don't buy things from catalogues'
I can afford everything i have - i've never had a missed or late payment in my life for anything! My problem is juggling the payments not that I can't make the payments.
Also my debts (£20k) aren't that huge when i earn £50k p/a. And make an additional £1k pcm on Ebay - I don't mean to boast it's just that you shouldn't assume a persons financial position. (I never said i needed financial advice)
And No before you think it - i wasn't born with a silver spoon, i'm 23 years old and have worked 3 jobs at times to aquire what I have today.
The sole reason i'm in debt is because i needed a car, furniture an solicitors fees and i didn't have £20k lying around. Who does?
Not because i went on a crazy spending spree with the cards. I've never lived above my means.
This was (and still is) a short term solution for me to pay back over 2 years.
I joined this site for friendly advice as i'd like to have just 1 payment p/m instead of 32. (27 DD & 5 SO)
If you have nothing positive to say then why bother?? I'm looking for a solution not negativity! :rotfl:0 -
You cannot consolodate any debt into the mortgage. Webster is correct in pointing out 100% lending is dead, let alone above 100%.
In fact you might find you now can only borrow 95% of the 75% share, so you will have to find the 5% yourself.
Best of luck0 -
I've just read your latest post in which you say the flat has gone up in value in which case you will have to pay more for the remaining share.
The supply of mortgage money has fallen by about 50% so ALL prices will decline as a result - you cant achieve the same price for any entity if the money supply as declined. Furthermore, newbuilt property is toxic and most lenders have place severe mortgage restrictions upon it, so prices have been negativly impacted.
I dont want to appear negative, merely realistic so you aren't dissapointed.0 -
I have great credit as i've always paid for everything on time, however, i have a low credit score (at the mo) as i already have £20,000 unsecured debt in my name. (i was unaware till recentely that a person can only have up to a certain amount of unsecured debt at any one time.
The fact that you have a low credit score means that you don't have 'great credit' and you may find it difficult to get a mortgage for the remaining 75% share, let alone adding a further £20k onto it.
You'd probably be best going onto the Debt forum and posting a SOA to see which debts you should be paying off first.0
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