mortgage question

[tracy.h]

I am with northern rock and have the dreaded together mortgage.
Mortgage £147000
Unsecured 28000
I am on a fixed rate for 5 years and am only 21 mnonths into it.
I have no arrears on either part of the mortgage.
House valuation £185000
I just wondered if it would be worth trying to remotgage and offer f+f on debts of £114000
Thats with unsecured element of NR included.
I am not in an iva and at present am paying my creditors monthly as agreed by myself.
Monthly income £2430
I just wondered how much nr would add in charges for ending fixed mortgage early.
Or should i wait as next year i may be financaily in a better posistion and be able to up the offer.
I have a disability and have been quite poorly of late and find the stress of dealing with creditors very stressfull.
I am paying an interest only mortgage since last month of £728+195 for unsecured element i also have 8 defaults but no ccj/s.
Any advise will be much appreciated.

Thank you

Tracy

[mikebdomain]

You currently owe NR 175k against a value of 185k which is approx. 94.6% Loan to Value (LTV).

NR early redemption charges (ERC) after 21 months will be approx: (I’m not sure what the ERC would have been on the product available 21 months ago, but I will assume it is not too different from recent products = 4% ERC on 5 year fixed) £5800 on the secured part. Which would take you to 181k against 185k = 98% LTV

You do not seem to have sufficient equity to pay off NR AND your additional creditors.

Even if the figures above were wrong and you were able to remortgage just to clear NR, the fact that you are on an IVA forum, tells me that you are possibly struggling to make payments, AND because you have defaults you will not achieve a prime product and the consequent saving in interest rates therefore to remortgage will not necessarily be in your best interest at this time.

I would hang on, and try to repair your credit rating best you can over the next twelve months - if you are able.


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[mikebdomain]

Tracy

Just wanted to add that IF you are unsure of your redemption figures or mortgage balance, it may well be worth talking to a mortgage broker – just to clarify that it is not in your best interest.


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Specialising in adverse credit.

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[tracy.h]

Hi thanks Mike
what i was looking at was is the unsecured part of the mortgage not a loan as that was what it was an unsecured loan and in an iva they would be classed as my other unsecured creditors,so my thinking was if i remorgaged for the outstanding balance of the secured element then would i not be able to try a f+f if i could borrow xtra on the mortgage.

[mikebdomain]

Sounds feasible,

However, what percentage does the NR unsecured portion have against your other creditors? Bearing in mind their stance on IVA’s and the usual postings on this forum about them. I could not and would not advise you in anyway about the likelihood of your offer being accepted (not my area of expertise)

But, the remortgage with a view to offer F&F would seem feasible. However, It seems that the total equity you have in the property, would be 37k. If you can remortgage at 90% LTV (dependant on your circumstances) this would give you usable equity of just £19500 less ERC’s and costs – what’s the chance of doing a F&F with those figures?

If you go down the road of trying to settle some and not other debts, please, bear in mind if you remortgage your secured part of the NR mortgage the unsecured part interest rate jumps to Bank Of England rate + 5%, which would equal 10.75% variable. I believe those figures to be accurate – but should be checked.


FREE ADVICE IS THE BEST ADVICE

LEYBRIDGE LIMITED
Mortgage Broker
Specialising in adverse credit.

see feedback and testimonials at:
http://www.leybridge.com/testimonial.php
Check out my blog at:
http://mikebdomain.blogs.iva.co.uk/
Please read our Initial Disclosure Document(IDD):
http://www.leybridge.com/Leybridge-IDD.pdf

[tracy.h]

Thanks again
As you quite rightly say NR are not excepting iva's at the moment so an iva is out of the question,so my thinking was if i could remortgage with another company then the unsecured part would have to go in the pot with the other unsecured creditors,and as you say i would only be left with £19000 and that wouldnt be enough for f+f but in march next year i would be in a position to offer a much larger amount and if my mortgage is with another lender then they will not be my biggest creditor so i just felt it would be easier to deal with them if i have no ties other than a loan.
The problem was when i spoke to them they threatened a charging order as soon as i missed 2 payments.I understand that any creditor can proceed with this but i just feel so disgusted with there stance in helping people im racking my brains for a solution.Not easy i understand but maybe i will have to sit it out hope if nr do get taken over the new owners will be a lot more receptive to iva's.
As i said at the moment im surviving by making reduced payments to creditors and up until now it seems to be going well but its not a long term solution.So im looking at all options available maybe i'l look a bit closer nearer next march when im in a better financail posistion.
Out of interest does any one have any idea what a f+f would be on £114000,so at least i will have a ball park figure to look at.

Tracy

[Adam Davies]

Hi Tracey
I think the reality is that NR will not accept a full and final whilst they can secure their unsecured debt on your property.
In a year NR stance may be different and there is also a chance that they will have just less than the 25% casting vote.Another alternative is that you remortgage to combine the secured and unsecured NR loans and then looking to enter an IVA for the unsecured debts.Another option is if NR secure their debt it will leave you free to try for an IVA again.
You have a few options.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[tracy.h]

Hi Andy
Thanks for replying.
Im not in arrears with nr have managed to catch up so they wont place charging order,mabe i should have let them secure the unsecured,but i have been paying my creditors as much back as i can afford and have been lucky that so far interest has stopped,but i know this is not a long term solution.
I f i could get mortgage and add the unsecured loan onto it then nr wouldnt be in the picture and then i could possibly try as you say for iva.
The problem i think i would have is getting a mortgage for the amount i need with mortgage and unsecured loan the total would £174000,and house only valued at £185000 i was thinking the same but after reading Mikes posts it doesnt seem feasabe and i doubt any company would touch us.
Love the new picture

Tracy

[mikebdomain]

Tracy as I said it's worth ringing a mortgage broker and going through the figures with an advisor - just to confirm what I think to be the case.

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LEYBRIDGE LIMITED
Mortgage Broker
Specialising in adverse credit.

see feedback and testimonials at:
http://www.leybridge.com/testimonial.php
Check out my blog at:
http://mikebdomain.blogs.iva.co.uk/
Please read our Initial Disclosure Document(IDD):
http://www.leybridge.com/Leybridge-IDD.pdf

[tracy.h]

Thanks again Mike
would it be worth giving your firm a call

Tracy

[mikebdomain]

of course [:D]

FREE ADVICE IS THE BEST ADVICE

LEYBRIDGE LIMITED
Mortgage Broker
Specialising in adverse credit.

see feedback and testimonials at:
http://www.leybridge.com/testimonial.php
Check out my blog at:
http://mikebdomain.blogs.iva.co.uk/
Please read our Initial Disclosure Document(IDD):
http://www.leybridge.com/Leybridge-IDD.pdf

[tracy.h]

Thank you,if i knew how to put a smiley face back i would.

Tracy

[Skippy]

[:D] - like this! There's a block of smilies next to the box where you type a post x

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

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[Adam Davies]

Hi Tracey
If not now then in a years time when your equity has grown,hopefully
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[tracy.h]

Hi Andy
I will wait as you say hopefully equity will have grown,as long as my creditors keep excepting my payments and keep the interest off then its not urgent,and as i said come march i will actualy be getting a lump sum of money and im sure this will also help.
Thanks

Tracy