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  • FIRST POST
    • Samuurai
    • By Samuurai 10th Aug 18, 1:38 PM
    • 10Posts
    • 0Thanks
    Samuurai
    Releasing equity in my house
    • #1
    • 10th Aug 18, 1:38 PM
    Releasing equity in my house 10th Aug 18 at 1:38 PM
    Hi,

    I have 25K worth of credit card debt and have lost my job due to my employer liquidating. I have just got a contract job, albeit with a pay cut.

    We have a property which we tried to sell but had no interest. We took out a mortgage for 989K three years ago and we have paid it down to 860K. The house is worth about 1.35M.

    I am wanting to approach our mortgage lender (Virgin Money) to see if they can release 30,000 of the equity back to us. I am just wondering if anyone has any pointers on how best to approach them? Do we tell them the full sob story? Do I mention that my girlfriend is due to inherit some money in 3-6 months?

    I know this is normally considered a remortgage, however we wouldn't pass any affordability checks now. Since the business went south, we had to take paycuts and when we tried to get a new mortgage last September, there was no chance due to our lower incomes and increased debt.

    Any help would be appreciated. Thanks!
Page 1
    • Willing2Learn
    • By Willing2Learn 10th Aug 18, 1:52 PM
    • 1,825 Posts
    • 1,408 Thanks
    Willing2Learn
    • #2
    • 10th Aug 18, 1:52 PM
    • #2
    • 10th Aug 18, 1:52 PM
    Hello Samurai and welcome to MSE

    I'm sorry, I cannot advise on how to release equity.

    I just wanted to check whether you had tried to get a 0% balance transfer credit card? Take a look at the MSE Article - Balance Transfer Credit Cards Up to 36mths 0%, 2.49% fee. There is an eligibility checker within the article, that allows you to check your chances by doing a 'soft' search on your credit file, so as not to negatively impact your credit report. Maybe you could reduce your repayments this way?
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    • sourcrates
    • By sourcrates 10th Aug 18, 1:55 PM
    • 15,872 Posts
    • 14,921 Thanks
    sourcrates
    • #3
    • 10th Aug 18, 1:55 PM
    • #3
    • 10th Aug 18, 1:55 PM
    I know this is normally considered a remortgage, however we wouldn't pass any affordability checks now. Since the business went south.
    Originally posted by Samuurai

    Hi,


    There in lies your answer.


    How are you managing the mortgage repayments, on that size mortgage ?


    Currently the credit card debt is all non priority, and you could just pay a 1 a month to each account, why would you turn that into priority debt ?


    Makes no sense, just ride out the storm until things improve.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Free Legal advice see : http://legalbeagles.info/
    • Samuurai
    • By Samuurai 10th Aug 18, 2:20 PM
    • 10 Posts
    • 0 Thanks
    Samuurai
    • #4
    • 10th Aug 18, 2:20 PM
    • #4
    • 10th Aug 18, 2:20 PM
    Hi,

    Because they are totalling 900/month in payments which I can't afford. What do you mean by paying 1 into each account?
    • Willing2Learn
    • By Willing2Learn 10th Aug 18, 2:48 PM
    • 1,825 Posts
    • 1,408 Thanks
    Willing2Learn
    • #5
    • 10th Aug 18, 2:48 PM
    • #5
    • 10th Aug 18, 2:48 PM
    What do you mean by paying 1 into each account?
    Originally posted by Samuurai
    When can I offer a token payment to a debt?


    Source: DebtCamel
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    • sourcrates
    • By sourcrates 10th Aug 18, 3:09 PM
    • 15,872 Posts
    • 14,921 Thanks
    sourcrates
    • #6
    • 10th Aug 18, 3:09 PM
    • #6
    • 10th Aug 18, 3:09 PM
    Hi,

    Because they are totalling 900/month in payments which I can't afford. What do you mean by paying 1 into each account?
    Originally posted by Samuurai

    Instead of further borrowing, if you cannot afford the minimum credit card payments, then just make token payments of say 1 to each card instead, due to your circumstances.


    Its a form of debt management rather than attempt re-mortgage or consolidation.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Free Legal advice see : http://legalbeagles.info/
    • enthusiasticsaver
    • By enthusiasticsaver 10th Aug 18, 7:04 PM
    • 7,367 Posts
    • 16,267 Thanks
    enthusiasticsaver
    • #7
    • 10th Aug 18, 7:04 PM
    • #7
    • 10th Aug 18, 7:04 PM
    Can you rent the property to bring in some income? Reduce the price to get more interest? Are you living in the property?

    Write to credit card companies offering token payments. The mortgage is more important.
    Debt free and mortgage free and early retiree. Living the dream

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages and Endowments, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • pennystretcher
    • By pennystretcher 11th Aug 18, 10:00 AM
    • 400 Posts
    • 1,482 Thanks
    pennystretcher
    • #8
    • 11th Aug 18, 10:00 AM
    • #8
    • 11th Aug 18, 10:00 AM
    Are you on a fixed term deal with your mortgage? Or has the deal expired? If the deal has ended, you should look into current lender's offers and ask to switch if you can find a better deal with them. Not sure about Virgin, but with YBS it was a simple thing of them sending me details of deals I could switch to and then confirm with them which one I wanted.
    • Suseka97
    • By Suseka97 12th Aug 18, 8:42 AM
    • 482 Posts
    • 608 Thanks
    Suseka97
    • #9
    • 12th Aug 18, 8:42 AM
    • #9
    • 12th Aug 18, 8:42 AM
    I doubt you'll get an 'equity release / remortgage' - but even if you could, what you are looking to do here is turn a 'non-priority debt' (aka credit cards/loans) into a 'priority debt' (mortgage). That really isn't the way to go. Sit down and work out your income and expenditure position and if it proves that you really cannot afford the minimum payments then you need to be speaking to your creditors and setting up an 'informal' payment plan. You could use the services of a free debt charity (StepChange or PayPlan) - google Debt Management Plans to find out more.
    LBM April 2013 85k /14 Creditors
    SC DMP May 2013 - July 2017 (74k repaid)
    SM DMP July 2017 to date / 9k o/s
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