Remortgage, Loan or leave it as it is !
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smallzoo2
Posts: 270 Forumite
I wont go into why the credit cards..( other than some rat I went into business with took all my money ! )..
1. Mortgage
remaining : £55,205 Remaining full term : 3 years 10 months
Monthly payment : £1,300 Interest rate : 4.24%
Value of Property - lowest estimate £450,000
2. Credit Card Debts Total Approx £30k various % from 8% to 21%
Total minimum payments around £650 per month
..so.. some advice is to just stick with it ie leave the unsecured debts as they are because they are unsecured! ..but if I was to add the 30k on a remortgage for say 5 years then instead of the £2k our months for both debts it would come down to £1500. This would obviously ease our cashflow which is dreadful ie we down have anything left at the end of the month but it would obviously add interest base down the new mortgage
how do I work out whats bets financially for me !.. its giving me a headache just trying to juggle the figures
nb I am self employed working through a limited company and 60
cheers
1. Mortgage
remaining : £55,205 Remaining full term : 3 years 10 months
Monthly payment : £1,300 Interest rate : 4.24%
Value of Property - lowest estimate £450,000
2. Credit Card Debts Total Approx £30k various % from 8% to 21%
Total minimum payments around £650 per month
..so.. some advice is to just stick with it ie leave the unsecured debts as they are because they are unsecured! ..but if I was to add the 30k on a remortgage for say 5 years then instead of the £2k our months for both debts it would come down to £1500. This would obviously ease our cashflow which is dreadful ie we down have anything left at the end of the month but it would obviously add interest base down the new mortgage
how do I work out whats bets financially for me !.. its giving me a headache just trying to juggle the figures
nb I am self employed working through a limited company and 60
cheers
0
Comments
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You would need to complete an SOA (Statement of Affairs) so that you have the full financial picture. Then, by posting your SOA up here, people will then be able to give you meaningful advice.how do I work out whats bets financially for me !.. its giving me a headache just trying to juggle the figures
Generally speaking, it is not usually a good idea to turn unsecured debt into debt secured against your home
I work within the voluntary sector, supporting vulnerable people to rebuild their lives.
I love my job
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ok..ill have a look at that0
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I would remortgage. See what term an 85k mortgage is for around what your paying at the moment (£1950 per month). You'll should be able to smash your current interest rates with that LTV. You will pay the debt of much quicker0
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If you were to remortgage as has already been said you'll get a far lower interest rate now than you're currently lumbered with, BUT if you are going that route, I'd take a product that allows at least some overpayment and shorten the term that way, as you're likely not going to get anything below 5 years for a new mortgage. Until we see the SOA though it's quite difficult to establish whether that is really a good route for you - as you say yourself, turning unsecured debt into secured isn't usually a good idea!🎉 MORTGAGE FREE (First time!) 30/09/2016 🎉 And now we go again…New mortgage taken 01/09/23 🏡
Balance as at 01/09/23 = £115,000.00
Balance as at 31/12/23 = £112,000.00SOA CALCULATOR (for DFW newbies): SOA Calculatorshe/her0 -
I have tried my best at the SOA so but I guess it shows how little disposable income we have..
Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 3
Number of children in household.........
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 2900
Partners monthly income after tax....... 900
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 3800
Monthly Expense Details
Mortgage................................ 1340
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 170
Electricity............................. 100
Gas..................................... 100
Oil..................................... 0
Water rates............................. 30
Telephone (land line)................... 40
Mobile phone............................ 20
TV Licence.............................. 5
Satellite/Cable TV...................... 0
Internet Services....................... 25
Groceries etc. ......................... 450
Clothing................................ 20
Petrol/diesel........................... 40
Road tax................................ 20
Car Insurance........................... 110
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 10
Buildings insurance..................... 15
Contents insurance...................... 15
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 30
Entertainment........................... 0
Holiday................................. 80
Emergency fund.......................... 0
catalogues.............................. 130
Total monthly expenses.................. 2760
Assets
Cash.................................... 0
House value (Gross)..................... 425000
Shares and bonds........................ 400
Car(s).................................. 500
Other assets............................ 0
Total Assets............................ 425900
Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 55000....(1340).....4.24
Total secured & HP debts...... 55000.....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
loan...........................4998......161.......9.2
loan...........................13838.....300.......7.8
credit card....................8950......146.......21
credit card....................2750......120.......18
credit card....................2998......90........14
credit card....................3289......80........18
credit card....................6640......120.......9
credit card....................6175......150.......16
credit card....................3657......70........11
Total unsecured debts..........53295.....1237......-
Monthly Budget Summary
Total monthly income.................... 3,800
Expenses (including HP & secured debts). 2,760
Available for debt repayments........... 1,040
Monthly UNsecured debt repayments....... 1,237
Amount short for making debt repayments. -197
Personal Balance Sheet Summary
Total assets (things you own)........... 425,900
Total HP & Secured debt................. -55,000
Total Unsecured debt.................... -53,295
Net Assets.............................. 317,6050 -
Credit cards are an expensive rip off. Get rid ASAP mate.0
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Just a few comments.
Can the 3rd adult contribute to the budget?
The grocery budget should be cut.
Is the car needed? Each month you spend more than 3 times the amount you spend on petrol just on keeping it on the road. Also how are you paying £110 a month insurance on a car worth £500?Aiming to make £7,500 online in 20220 -
Thanks so far for the comments. The third adult is our daughter who has just turned 18. She works hard on part-time jobs as well as her college so she bought her own small car but we pay the tax and insurance0
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Comments in red as usual:I have tried my best at the SOA so but I guess it shows how little disposable income we have..
Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 3 Could do with some form of contribution from the 3rd adult here - she certainly should be paying her own car costs if she is working part time, and should really be paying you at least some keep, too, as this will stand her in far better stead for real life to come!
Number of children in household.........
Number of cars owned.................... 1 is this the daughter's car?
Monthly Income Details
Monthly income after tax................ 2900
Partners monthly income after tax....... 900 Can this be increased at all?
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 3800
Monthly Expense Details
Mortgage................................ 1340 This is an ouchily high proportion of your earnings.
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 170 Are you paying this over 10 months or 12? If 10 then get it switched to 12 ASAP
Electricity............................. 100 Read the guide to cutting down on use on the main site - also shop around to be sure you're on the right tariff - this is extremely high though - and the gas too.
Gas..................................... 100 See above
Oil..................................... 0
Water rates............................. 30
Telephone (land line)................... 40 Quite high - if you're not in contract shop around for a better deal
Mobile phone............................ 20
TV Licence.............................. 5 How come so low? Should be £12.83 I think it is per month?
Satellite/Cable TV...................... 0
Internet Services....................... 25
Groceries etc. ......................... 450 Waaaaay too high for a family of 3. You can hammer that down easily!
Clothing................................ 20
Petrol/diesel........................... 40
Road tax................................ 20
Car Insurance........................... 110 Not quite sure whether this is one or two cars? Daughter needs to start coughing up for her own I'm afraid, and you also need to make sure you're getting the best deals
Car maintenance (including MOT)......... 10 And this is too low for a single car, and far too low for 2 - but then again daughter should be covering her own running costs.
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 10
Buildings insurance..................... 15 Have you checked whether a combined buildings/contents policy can be got any cheaper?
Contents insurance...................... 15
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0 I'm very doubtful that you spend nothing in this category!
Haircuts................................ 30 And this is quite high for 2 people (please tell me you're not paying for your daughter's haircuts too?)
Entertainment........................... 0 Suspect there is a spend here too, you just haven't realised it.
Holiday................................. 80 Right now I'm afraid I don;t think you can afford this.
Emergency fund.......................... 0 You'd be better setting aside something here than for a holiday if it's a choice between the two
catalogues.............................. 130 Should this be under unsecured debts?
Total monthly expenses.................. 2760
Assets
Cash.................................... 0 Shere is the money you set aside for holidays, car maintenance, clothing etc?
House value (Gross)..................... 425000
Shares and bonds........................ 400
Car(s).................................. 500
Other assets............................ 0
Total Assets............................ 425900
Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 55000....(1340).....4.24
Total secured & HP debts...... 55000.....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
loan...........................4998......161.......9.2
loan...........................13838.....300.......7.8
credit card....................8950......146.......21
credit card....................2750......120.......18
credit card....................2998......90........14
credit card....................3289......80........18
credit card....................6640......120.......9
credit card....................6175......150.......16
credit card....................3657......70........11
Total unsecured debts..........53295.....1237......-
Monthly Budget Summary
Total monthly income.................... 3,800
Expenses (including HP & secured debts). 2,760
Available for debt repayments........... 1,040
Monthly UNsecured debt repayments....... 1,237
Amount short for making debt repayments. -197
Personal Balance Sheet Summary
Total assets (things you own)........... 425,900
Total HP & Secured debt................. -55,000
Total Unsecured debt.................... -53,295
Net Assets.............................. 317,605
The good news is that it's possibly to sort out your shortfall pretty easily - indeed you could claw back most of it just from your grocery spend, to be honest.
I think the time for tough love has arrived with your daughter - absolutely get that you want to help her out, but right now you just can't afford that. Time to sit her down and tell her that she needs to start covering her own car costs, and agree a small contribution towards her keep as well I think. In the long term this will honestly do her a massive favour.
My suggestion is that the first thing is to get your budget sorted and then save an emergency fund, and only then can you work out how best to progress with tackling the debts. In the interim, do you have any option to transfer any of the cards to 0% deals? The MSE Credit Club might be your best way of checking this.🎉 MORTGAGE FREE (First time!) 30/09/2016 🎉 And now we go again…New mortgage taken 01/09/23 🏡
Balance as at 01/09/23 = £115,000.00
Balance as at 31/12/23 = £112,000.00SOA CALCULATOR (for DFW newbies): SOA Calculatorshe/her0 -
Thanks very much for the hard work in looking at this for me
First re your comments:-
Number of adults in household........... 3
Comment
Could do with some form of contribution from the 3rd adult here...
Answer
We bought both our other kids used cars so feel guilty anyway about her having to pay for her own.
She does pay £30 a month towards her shopping ( she is Vegan so shopping is more expensive )
Number of cars owned.................... 1
Comment
is this the daughter's car?
AnswerAnswer
Should be 2 , my 20yr old estate car and her corsa
Monthly Income Details
Comment
Partners monthly income after tax....... 900 Can this be increased at all?
Answer
She already tries to work extra hours
Monthly Expense Details
Mortgage................................ 1340
Comment
This is an ouchily high proportion of your earnings.
Answer
so is 4.24% high ?.Catch 22 here. I am self employed through a limited company so not as many mortgages open to me
Council tax............................. 170
Comment
Are you paying this over 10 months or 12? If 10 then get it switched to 12 ASAP
Answer
Actualy £176.. yes I will contact them
Electricity/ Gas............................. 200
Comment
Read the guide to cutting down on use on the main site ..
Answer
Actually £170 but I thought I was getting a good deal with Avro Energy as we were paying £350 with EON last year but I will do further research
Telephone (land line)................... 40
Comment
Quite high - if you're not in contract shop around for a better deal
Answer
This includes broadband...
TV Licence.............................. 5
Comment
How come so low? Should be £12.83 I think it is per month?
Answer
Correct We pay £150 in October BUT... just found out that as my Mum who is 95 is living with us we maybe should not have been paying this
Groceries etc. ......................... 450
Comment
Waaaaay too high for a family of 3. You can hammer that down easily!
Answer
I dont understand how we can. We dont buy ready meals, we buy lots of veg and fruit( which is expensive)
I actually thought we were doing well ?
Car Insurance........................... 110
Comment
Not quite sure whether this is one or two cars?
Answer
Both Cars..I'm 60 so mines not a lot
Car maintenance (including MOT)......... 10
Comment
And this is too low for a single car, and far too low for 2 -
Answer
Guess I have been lucky..my car has never cost me more that the odd service and mot but fair enough need to increase that
Buildings & Contents insurance..................... 30
Comment
Have you checked whether a combined buildings/contents policy can be got any cheaper?
Answer
Checked again..it is £24
Presents (birthday, christmas etc)...... 0
Comment
I'm very doubtful that you spend nothing in this category!
Answer
Correct ...usually panic time or credit card at christmas
Haircuts................................ 30
Comment
And this is quite high for 2 people (please tell me you're not paying for your daughter's haircuts too?)
Answer
Mine is about £8 but my wife has hers coloured etc once in a while so I dont thinks its far off
Entertainment........................... 0
Comment
Suspect there is a spend here too, you just haven't realised it.
Answer
Correct ...usually find some cash from somewhere ..but we hardly ever go out
Holiday................................. 80
Comment
Right now I'm afraid I don;t think you can afford this.
Answer
I wish I could agree with you but as you will see from my comment later I really do need 2 separate weeks and we only go in a caravan or cottage in cornwall
Unsecured Debts
Moved catalogue here
Description....................Debt......Monthly.. .APR
catalogue( wife )............. 1600......130
Total unsecured debts..........54895.....1367......-
I also found 2 other monthly payments
Life Insurance £18
Charity WWA £10.00
I am going to look at MSE club and see what they can help me with
Finally, as I hinted before but I forgot to mention in the original email. After my Dad died we moved my Mum who is 96 now in with us. This means that I not only have to do my own job but I also look after her. She has slight memory problems so its quite a strain on us both BUT we wont see her in a home.
This is the reason we need the holiday as my 2 brothers ( both wealthy ) do not want to look after her so her brother and his wife who are 92 and 90 look after her for a week while we go away.
I get £300 a month allowance for her care but all that is spent on food, toiletries, clothing, washing , petrol( I only use my car for getting her around ), taking her out etc
Thanks again so much for everyones help0
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