NEED a mortgage

M

maxol

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help...advice please?

i am a local authority tenant. major anti social issues in the area making it uninhabitable.
married couple, one infant. My husband is a stay at home parent.

i earn 38,000p.a he gets 10,400 social.

problem is:

due to student loans etc, i have a number of loans,
BOI, Tesco and 2 CC's plus my husband has a car loan with nissan finance.
i am currently paying out 1700 a month in repayments!!

my icb is only showing one loan. my repaymeny history on everything is *************************. paying is not a problem for me.

but i now need to source a way to purchase a home for my family.

i realise my borrowing was reckless but too late now.

can anyone reccommend a way to obtain a mortgage sooner rather than later?

can anyone 'think outside' the box to come up with a solution?

what are my chances of getting a long term loan to cover all debts thereby reducing my monthly outlay ? is this a non runner?

i fell so frustrated because honestly paying is not a problem for me.

We would be looking for a mortgage of about 215000.

thanks!
 
Sadly, I couldn't see you getting a mortgage right now. Those monthly loan repayments are crazy really.

That's a big enough mortgage given the figures, interest rates will of course go up in time.

Sorry to hear about the anti-social issues but if you think you can afford a mortgage then you can definitely afford to rent a decent place somewhere habitable, did you have a good look at lettings in your area?
If I was you my first priority would be getting sound financial advice on how to tackle those loans. A mortgage should be a complete non runner for now IMHO.
 
i know, we've been looking into rentals but i don't like the idea of being in a home i cant decorate or renovate. i've a 6month old to consider!

as for sorting the loans, thats what i'm hoping someone here can help with?

ideally i would like to consildate?

god i wish i had a rich uncle ;-)
 
Consolidating will not take away the debt and will probably just lengthen the amount of time that you are not in a position to buy (as it will probably mean an increase in the length of time you are in debt). It is not a solution to your problems, despite what the ads say.

So, in order to be in a position to look at buying a house, you need two things:
1. Clear your existing debt
2. Save for a deposit/solicitors fees

Prioritise your most expensive debt (probably the credit cards) and pay extra on that to pay it off. Then the next loan, then the one after. As you pay off each loan, move the payments to the next loan, so that you end up paying the same amount out each month in repayments, even though your loans are decreasing. If any of the loans don't allow you to pay them off early, put that amount into a savings account.

It would also help if you said how much each loan was for and what interest rate you are paying on it - in terms of saying "pay this one off first and then that one", but the basic advice always stands - pay the one with the highest interest rate off first, even if it is the biggest and will take a long time. This will save you the most money.

You don't say how much you are currently paying in rent, so it is difficult for people to assess what you could afford in a private rental. It is an option, but I think it would be a difficult step up for you from local authority rents.

I know there are council swap schemes and move schemes, but I don't know the details of them - is there any way you can claim that your current housing is unsuitable for a family with a baby? And see if you can get a move based on that?

Best of luck...
 
thank you yoganmahew!

this is going to sound terrible but i dont know the rates on any of my loans i will have to go seek out documents.

i have resolved to clear all cc debt by xmas.

i am negotiating with council at moment to see what options i have.

appreciate the non judgemental reply.
 
I'd say you should bit the bullet and rent somewhere nicer, rent prices are falling and there is a huge selection, have a look on daft.ie or myhome.ie. I'm sure there is loads that would be suitable without renovation and between anti-social behaviour and not being able to paint, i know which i would take.

Of course pay off you loans soon etc.
 
maxol said:
thank you yoganmahew!

this is going to sound terrible but i dont know the rates on any of my loans i will have to go seek out documents.

i have resolved to clear all cc debt by xmas.

i am negotiating with council at moment to see what options i have.

appreciate the non judgemental reply.
Click to expand...
Oh don't worry, nobody really knows what their credit card rate is - the companies are quite good at hiding it (by telling you what the monthly rate is, it's only when you work out how much in a year it is costing you that you go "gosh, that's a bit mean!".

Having a realistic timeframe is a very good idea. There is no point in saying "I'll be free of debt in three months" if it simply isn't going to be possible! All you will do is depress yourself at the end of the three months when you haven't met your target.

Best of luck with the council, try and find out what rights you have separately to talking to them and stand your ground (without getting nasty about it) for your rights.
 
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