How can I afford to keep my property

[cjp]

I have a mortgage which I am currently repaying at £980 per month but I am now single and only have £1180 coming in each month. How can I afford to keep my property and but essentials each month ie food, gas, electricity?

[hara]

are you in an IVA ?

hara.

[thebear29uk]

Hi cip and welcome to the forum.

I hate to say it but you seem to be very over-stretched on your mortgage. Your repayments are more than 80% of your income. I would think the only way you could afford to stay in the house would be to rent out a spare room if you have one. This would help you with both your mortgage and a share of the household bills. Also, if your house is large for one person you could consider downsizing to reduce your mortgage.

Regards

Dave

[Skippy]

Hi cip and welcome to the forum. I agree with Dave on this one - I know it's not a nice idea to lose your home, but you might be better either selling and downsizing (depending on the size of your house) or selling and renting.

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

[MelanieGiles]

Are you paying your mortgage payments on a repayment or interest only basis? Switiching to interest only would reduce the quantum of the payments, but you are very highly geared compared to your income.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[cjp]

I live in a 1 bedroom flat. My mortgage is a repayment and interest rate fixed for the next 5 years. However, I was earning much more before I changed jobs and really didn't think I would be splitting with my live-in girlfriend as my plans were long term. I do realise that things change but the split has come right out of the blue and I'mtotally unprepared for it financially. The mortgage is in my name only but my girlfriend was contributing so it was manageable. I can't rent out any rooms or downsize.[:(]

[MelanieGiles]

I suggest that you find out whether your mortgage company will allow you to revert to interest only, and compare the two differing mortgage amounts. How much is outstanding on your mortgage, and how much is the flat worth. Also, do you have other debts which you are unable to service at present?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[cjp]

No I'm not and your advice as to which one I could call would be very helpful. I know that there are many now out there but I really don't want to compound my situation by enrolling with a dubious provider.

are you in an IVA ?

hara.

[cjp]

I have actually reverted to an interest only mortgage before but I re-mortgaged just recently and a repayment mortgage seemed fine - I felt that at least I was paying it off. I have approximately £173,326 to pay on my mortgage, of which £154,000 is secured and the rest unsecured. My flat is probably worth around £125,000 in the current market. I also have a personal loan with Blackhorse finance of which I am currently paying £122.96 per month.

I suggest that you find out whether your mortgage company will allow you to revert to interest only, and compare the two differing mortgage amounts. How much is outstanding on your mortgage, and how much is the flat worth. Also, do you have other debts which you are unable to service at present?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk