Debt Questions

Hi, has anybody applied for this?

I have a Mortgage but also have a First Plus Loan as a Second charge, would we still be able to apply?

What is the actual criteria?, I have been on the forum before and we are in an extreme situation with Mortgage, 2nd Charge and a few credit cards, we have been to CAB, spoke to CCCS and Pay Plan but they were all unable to offer us any assistance due to the situation we are in and just wondered if the above may be something I should look into.

I have been dealing with all the creditors and Mortgage Lender myself and have sort of arranged dmps for myself but First Plus who is the second charge are not being very helpfull and are now starting to press a bit via Evershed and Clarity.

S

mm, do you have negative equity and if so, how much?

There is a link here with some interesting reading

http://www.communities.gov.uk/housing/b ... emeasures/

not sure how helpful that would be to you

(Also and something to remember when properties are for sale and second lender refuses - the first lender can overreach and allow it to be sold.)

There have been 294 Mortgage resues since last year so not a huge amount but enough to make a difference to 294 families. Go to www.direct.gov.uk and type in mortgage rescue to see further information.

The basic criteria - if your local council does it - is that there is some vulnerability involved.

Hi Sarah, Mortgage lender being ok at the moment with an agreed payment, its First Plus that is concerning us as they are not being very helpfull, If the HOuse were to be sold I think there will either just be enough literally to pay 1st Mortgage and First Plus off but may fall short cause of fees etc and could possible be in neg equity.
S

you have to be near the stages of repposession i.e court letters etc to be helped like i have been by the mortgage rescue. you must contact your local council housing dept or a housing association who will assist you.
i went from paying £1000p/mth mortgage to paying rent of £67 p/wk. i keep my house, i have had new smoke alarms to the mains , a boiler service, new soffits and facias, also when i leave this mortal coil and i can transfer the tenancy to my son but after he is gone the association will then own it if you see what i mean.
a huge relief and creditors have backed off as i now have no assets!!!!!!!!!!!!

mmm, can people with secured loans be eligible for this scheme? I am not sure, seems to me that some people with a lot of debt, could get a large secured loan to pay the unsecured debt and then apply for the mortgage rescue scheme? Or am I just too cynical?? too late for me anyway, I gave the house up and went bankrupt.

They can but it is more complicated and certainly a scenario like you suggested would throw it out of the window!!

"Isn't this scheme just about bailing out less responsible households?

No. We are targeting support at vulnerable households at risk of repossession to help them sustain home ownership and/or remain in their homes. Our mortgage rescue scheme is designed to support those who cannot pay, not those who won't pay their mortgages. That is why households will need to meet strict eligibility criteria and agree to a debt management plan or other financial solution to qualify."

Our situation is realy getting us down now and is stressfull, todate we have kept everyone at bay but struggling and having to deal with all our creditors ourselves as CAB, CSS, Payplan etc cannot help due to no free money.

Am paying interest only on the Mort at moment and keeping that up but have arrears.

To be honest dont know which way to turn as I said am keeping the creditors at bay at the moment but something has got to give eventually.

Would we beable to rent as I dont know how much is on our credit history re the debts we are in, nothing has gone as far as court. Realy dont know the best option, Realy dont want to go Bankrupt.

Husband is working and I am looking for employment but not much about as it has to fit in with 7yr old son have no other carers to call upon, school holidays are the main prob.

S

hi,
if I were in your situation I would enquire to the local authority and ask about the mortgage rescue scheme,better still get in touch with your local counciler and tell him/her your situation,they are there to help and they should know all the information about this scheme,I really hope you can do it as you seem to really need this help,

Bless you and let us know how you get on please .

take care x

You may not want to hear this but if I were you (and I was in exactly your position) I would give the house up and rent, whether you then look into bankruptcy or some other debt solution, you can do at your own pace and not be rushed.

If you are struggling to pay the mortgage even on interest only you need to step back and work out if the house is really worth it? If you want to keep the house, you need to pay the FULL amounts of mortgage and secured loan and pay the arrears off, from what you posted, this does not sound feasible. There is little point paying them dribs and drabs, they will want the full payment or they will go for repossession.

You could enquire about council housing, we managed to get a council house 18 months after leaving our house for repossession and then going bankrupt but some authorities are a bit stricter but we managed to get a private rented as soon as we left our mortgaged house.

just my opinion but I think you need to consider this carefully

Thank you for your replies.

Moaner, thank you for your advise, I believe to rent you have to have a deposit plus normal monthly rent, which we have not got unfortunately.

When renting what do they normally require such as references, bank info etc.

Thank you all anyway.
S

Try your local CAB, in some areas there is a scheme run by the council where they will pay the rental deposit on private rentals, it can do no harm to look into this