caught up in this credit crunch

[j.gd]

please help really don't know which way to turn we have a mortgage and two secured loans,we have always maintained payments never missed anything in the 15 years of having mortgages and loans both myself and my husband work full time with pretty good jobs & incomes but now because of the state of the country we are now caught up in this credit crunch.

According to a finacial adviser and really don't know what to do, our current mortgage has come to the end of its 2 yr fixed rate and now goes onto a varible rate of nearly £400 extra a month so we have looked else where to get a better fixed rate re-mortgage deal as anbody would do,we have good credit history and we have been offered a great re-mortgage deal one that wants to give us extra to pay off some unsecured debt (great) we have paid out for a valuation on our property, solicitor at the final stages money ready to go in bank BUT NO THE BIG BLOW our secured loan the 2nd charge will not give the deeds of postsponment the go ahead so our new mortgage offer cannot go in place,as would take it over their 90% but after complaining they have said instead of that extra £30k paying our unsecured debts they want it,thats the only way we can re-mortgage so now we are left with the no win situation we have worked so hard to get our house and are so scared of losing it, we can pay all our secured debt but now because of this we cannot pay the unsecured, is an iva the route we can take and is it possible with most of our wages taken up in secured please help we cannot eat,sleep work life is being effected just don't know what to do, the morning my daughter asked me mum are we going to lose our house i said no but the truth is i don't know PLEASE HELP .

[aguise]

Hi j.gd Hi and welcome to the forum.
I am not a technical expert and mortgages confuse me but someone with some knowledge will be a long soon.
If you wouldnt mind posting more like the amount of unsecured debt you have, your income and what you will have left after paying your living costs ( dont include the unsecured debt payments when working this out)Also is ther any equity in your home. If you can put this more advice can be given.
Try not to stress too much though easy to say. a lot of us on here have felt the way you are and have found great advice and solutions.
Be patient a lot of us were at a meeting last night and there fore it is a little quiet at present, answers will come.

Ang

[j.gd]

Hi Aguise thanks for your post,yeh monthly income is just under 3.5k the secured debt including the varible rate we are on now, is just over 2k pm and the unsecured is a total of just under £1k pm which adds up to 3 different loans and also we have 4 credit cards which total £3800 which are at their max this is a total amount of unsecured just over £25k as you can see there is not much left in the kitty,the property we bought back in jan 06 it was in total need of renovation as it was in a bit of a state as it had been empty for 12 mths the purchase price was just under £240k we have spent money on it hence the loans the valuation we have just paid out for he has said if we were to put on the open market it would be marketed at around £310-£315k but because of the state of the country valuers are valuing property a lot lower now (his words)as an error a side of caution so he markets it at the mo £290k nice to know it has increased by £50k and there is still a lot of work to be done, but unfortunately our mortgage & 2nd charge come to this total,so there is no equity at the mo,so we are really stuck between a rock & a hard place,we have woked so hard & been through so much i was 16 yrs of age when i left home and got our first mortgage with my husband who is only a couple of years older than me,(child hood sweethearts)at the age of 18 and had a child at the age of 17,i am in my thirties now feel life should be getting better not worse so been through a lot & worked so hard to get what we have, we just don't want to lose it, any help & advice you can give us would be so much appreciated many Thanks.

[MelanieGiles]

How much unsecured debt do you actually have? And how much would the new mortgage payments be if you were to consolidate your existing mortgage and secured loan now. Could you also work out how much that would leave you to offer to unsecured creditors within an IVA.

It is a shame that you are a victim of the credit crunch, which is leaving many secured lenders nervous of extending their loans to more than 90%.

Try not to worry - there will definately be a solution to this, we just need to find the right one. And I love challenges like this!

[j.gd]

Hi Melanie Thanks for reply
Our current mortgage stands at £216k in which our monthly payments have now gone from a fixed rate of £940pm to over £1340 as now varible,our 2nd charge (secured) stands at £75,000k which is also varible which payments have gone from £560pm to £670pm but now back down to £597pm.
We also have a 3rd charge of £17k which monthly is £376pm,hence fiqure just over £2k its actually £2376pm altogether for secured monthly payments.
Unsecured is 3 loans which are made up of
1)lloyds/tsb loan settlement figure of £7900 monthly payments of £254pm
2)citifinancial loan settlement figure of £7200 monthly payments of £209pm
3)provident loan which is door to door loan i am not exactly sure of settlment figure on this as it is based weekly as to monthly but approx is £6k but 4 weekly payments are just under £500.
Thats the loans the four credit cards work out at approx £200pm
Our new mortgage offer is for £246500k figure of £1190pm fixed for 3yrs which left around £30,500k to pay off the 3rd charge & as much of the unsecured as possible which would free up alot more monthly cash, but as said before the 2nd charge will not allow this extra as it takes it over their 90% but they will allow the £30,500 to go to them to reduce our 2nd charge loan of £75k to £45k which decreases our monthly payments to them but not by as much as it would of with with the previous.
the new mortgage offer has gone back to the underwriters & they will let us know tomorrow if they will give the mortgage the go ahead and pay the 2nd charge the extra, they cannot believe the fuss this 2nd charge are making, but there you go.
So we don't know if we will be able to change our mortgage so we can get back on a fixed rate again even if its (like for like)so we are not stuck on this varible rate not knowing what we have to pay month to month.
With working everything out there is not much left with all the ut bills they come in at just under £500pm thats gas,electric,council tax,& phone package & with secured payments up and down like a yo yo & with everyday expenses food,petrol for 2 cars as both need for work and 2 big dogs,insurances etc the list goes on.
Realistically i would say £150pm but i would love to say more as i feel these debts are no one else's fault but ours and feel so bad as never missed payments in our life,but to keep up with the secured, so we do not lose our home this is all we could afford we think at the mo.
Thank you for any advice (sorry if its confusing)

[IFA Law]

Hi, I am an independant mortgage and financial adviser and this is my first post, so here goes!!

The valuer who carried out the survey has said that he considers the house to be worth £290k yet would recommend putting on the market for £310?

What estimated value did you put on the mortgage application form. Also who are your current mortgage and loan providers and who is the mortgage company you applied to?

Have you had the property valued by an estate agent recently?

[j.gd]

Hi martin thanks for post
we had it valued last summer by an estate agent & they valued it around the £310k-£315k but the market was better then (apparently) when the valuer came to value it for the new mortgage who is (the bank of scotland) as i told him what the estate agent had said last year he said he did'nt doubt that figure, & more when the extension was done.
But because the market the way it is & because they are under- valuing props now as error side of caution his words he used, he had to do a figure based on what the property would get if a reposession was enforced the figure of £290k as it sits & the annoying part we had to shell out £500 for him to write that valuation & has done this figure in writing for the bank of scotland & thats how they came up with the offer.
The secured loan the 2nd charge is with a company called endeavour personal finance who i have to say have not been helpful & very difficult i even asked them back in 2006 if re-mortgaging would be a problem with them & they replied no that would be fine & here we are.
We have been with this company since 2004 and been good customers never missed payments even with their rates going up & down over the years but that does'nt seem to count for anything not that it should your just a number so they meet their targets i suppose.
Our current mortgage provider is a company called gmac.
And we have not had it valued recently with an estate agent.
Hope this information helps to maybe offer us some advice as things are already looking bleak with a missed payment to the door to door loan company & they want it on friday but have'nt got it.
we are just so worried & don't know what to do any good advice would be so apreciated.
Many Thanks

[MelanieGiles]

I think that your main problem is that you are too highly geared on your secured lending. How much would it cost you to rent a similar property in your area, and would the saving allow you to pay off your unsecured debts in any cas?

[j.gd]

property in our area to rent is between £600pm to £2500.
we know we have alot of secured but know if we stick at it we can do it, we were not well advised so now caught in the crunch of sorting out old mortgage & new mortgage,please we really don't want to lose the house,once we know where we are with our mortgage & hopefully get back on a fixed rate this would be a great help so i have def figures.
Many Thanks

[MelanieGiles]

So what exactly is your current mortgage broker suggesting that you do?

[j.gd]

Hi MG
Our mortgage adviser is suggesting nothing at this stage, as untill tomorrow we don't know what the outcome is going to be as with the mortgage company,but she says if the mortgage offer fails for the £246500 then it should be no problem for the (like for like)so this would save us the extra £439 on our mortgage & back on a fixed rate.
Many Thanks