Help! Debt & Shared Ownership Mortagage Advice Please.

obsessed_saver

Umm. Why don't you just go to the banks and ask them what they can do for you? Surely that's better than asking us as we can only give you our opinions. Surely the bank will see that you earn £50k (+ £12k Ebay pa) and would be able to give you some sort of consolidation loan. Like you said, £20k isn't all that much when compared to your income.

Plus a loan at 10% or 12% loan would be better than credit cards and catalogue debts that I imagine would be charged interest more than 15%?

And if you really only want to have one payment, even if the loan was at 15% (or matching your credit card interest rate) would be acceptable.

Finally, I suggest you go over to Debt-Free Wannabe forum next door, as they can provide a better response. It's not really something about house buying, I think.

Richard_Webster

Sorry, some of my comments were rather unnecessary and didn't contribute to a solution.

However, other posters since have made the point that it is going to be very difficult to obtain a mortgage for the amount wanted.

SquatNow

Richard_Webster wrote: »

However, other posters since have made the point that it is going to be very difficult to obtain a mortgage for the amount wanted.

Lets not beat around the bush... it will be impossible.

I'm sorry but there is no point getting the OPs hopes up.

As for the current debts, saying you can afford them but you have to "juggle" them means you can't afford them. If you can't comfortably make the payment and still put some money aside each month then you can't afford them. If you were out of work for a month you'de be homeless.

You have a negative net worth, and despite claims by EAs that your flat has gone up in value, you are almost certainly in Negative Equity. New-build flats typically drop 20%+ in price the day you move in, and prices in general have been dropping steadily (by at leats 6% on average) since the peak in August 2007. The simple truth is that you got yourself in debt buying 25% of a SlaveBox at the peak of a property bubble, and you will now have to pay for it for the rest of you life.

You are a victim of a system which has made many people (including a lot of speculators on MSE) very wealthy but has doomed an entire generation to a life of poverty.

For someone in your situation I'de be tempted to suggest bankrupcy as an option.

Unrelated: It's ironic that as people leave their mortgaged houses in their cred-card purchased suits and get into the Hire-Purchase cars and drive along, they see tramps and feel sorry for them. They see the tramps as failures as they have nothing... no home, no car, no fancy clothes, unaware that while the tramps have a net worth of £0 (Or maybe £2.45 + clothes) the man in his car with his debts may well have a net worth of negative £10,000. The tramp is in fact financially richer than them.

PasturesNew

Your best bet is to pay off all those cards and save as much as you can for 3 years, then get the SO property revalued and buy the remaining portion then.

poppy10_2

Becks999 wrote: »

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.

Here's an idea. Instead of trying to take out another loan to pay off your current debts, why not try stopping buying stuff, and saving some money to pay off your debts instead?

I know it's a crazy idea, but it might just work! :money:

Rabiddog_2

As others have said, There is no problem in having 25 standing orders as long as the money is in the bank to pay them. If you are in such a good financial position why not just pay down the cards and catalogue every month till their paid off??. Your comments about juggling your cash would lead people to believe that perhaps your financial position is not as rosy as you paint. Also the advice from your friends? about only buying 25% at first seems very wise. In all honesty your best bet would be to pay off your debts as quickly as possible . Re-assess your financial position, then possibly bid for another 25% of your property. There is no need to run before you can walk. You may find that 50% of this property is all you want. Also you may not be allowed to rent it out if its shared ownership. Racking up 20k of debt and thinking you will be able to afford the rest of the property was perhaps a bit ambitious/uncautious??
Also paying off those other debts will make your credit score go thru the roof. Only abramovich will have one better.

Becks999

Thanks For All The Advice!

I'm just going to pay everything off monthly and be debt free (hopefully) in 2 years.

I'll come back in 6 months and let you know how the juggling goes!

Thanks Again!

beecher

Good luck with it - I would advise going to the Debt forum if you need help on working out which debts to pay off first

SouthCoast

Don't forget to put some money aside so that you will be able to pay the tax on your eBay earnings.