# Refinancing - advice needed



## Get N bet R (5 Jun 2008)

Hi all,

I was wondering if anyone could give some advise, basically it's become apparent that myself and partner need to take some action re finances, I'm presently thinking of arranging an appointment with a broker re-mortgaging in order to clear (if approved) all debt with exception of mortgage.

Our details are as follows:

My Salary 65K Bonus approx 3-4K
Partner 12K (part time)

Mortgage 325K EBS (including top ups) 26.5 yrs left
House Value approx 440,000
Current Debts:
Car loan 14,500 K
Credit Cards 20K (maxed)
Combined Loans 38K
Overdraft 700 euro

We are up to date on all loans with exception of credit cards, our mortgage is up to date but recently we have been late in paying (2 weeks). Basically extremely difficult to make ends meet, we have one child and if anything pops up during the month we are really up against it.

I'm worried that recent late missed payments on Mortgage will ruin any chances of re-mortgage, my credit history has been excellent up until the last 6 months or so (part of the problem as I was continually approved for top ups/loans etc)

I've looked at the figures & if we were to get a re-mortgage for approx 390 - 395K over 30 yrs @ 2,200 per month would mean approx 2.5K disposable income after mortgage & travel costs to work have been paid, this would change our lives, basically be able to live a bit & save at least 5-600 euro a month. The present circumstances are getting me & my partner especially really down, affecting my motivation & drive work also. I'm very reluctant to get involved with any of the sub-prime lenders, start, nua etc as I fear that we would never get away from them and under the collar for rest of lives.

I've a good well paying & established job & promising career, I've thought about going to MABS but I guess am embarrassed and proud at the moment, before hand I would like to see anything could be done on this front - mortgage broker or would I be immediately be refused ?

Any thoughts / suggestions welcome.

Thank you.


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## pinkyBear (5 Jun 2008)

*Re: Refinancing - advise needed*

It might be no harm to post in Money Make over - you appear to be in alot of debt €72K..
P


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## Gus2008 (5 Jun 2008)

*Re: Refinancing - advise needed*

Contact a broker and see. It is getting a lot harder to refinance, so maybe have a back up plan.


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## ClubMan (5 Jun 2008)

*Re: Refinancing - advise needed*



pinkyBear said:


> It might be no harm to post in Money Make over - you appear to be in alot of debt €72K..
> P


I moved the thread. 

As per _pinkyBear's _suggestion perhaps you could fill out the normal _Money Makeover _template?


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## so-crates (5 Jun 2008)

*Re: Refinancing - advise needed*

Get N bet R, don't you think it is time you swallowed false pride and contacted MABS? From the above it certainly looks like you didn't do so two years ago when you asked a similar question. Also from the looks of your financial position above (why has your car loan gone up 4.5k? Surely it should have reduced in that time?) you re-mortgaged then? How come you are still looking at an increased level of unsecured debt? Don't be embarrassed, be brave. You have to address the problem you have not hide behind another re-mortgage. You seem to have some underlying lifestyle issues that are resulting in you living beyond your means.

I think you need to seriously and genuinely look at your spending. Go through the approach on the MABS website list and prioritise your debts, list and prioritise your living expenses, list all your income and draw up a budget.

I would also start maintaining a spending diary and use that as a basis to identify where you can make cuts in your day-to-day expenditure. You need to increase the income you can assign to clearing your debt, not increase your debt to "afford" your lifestyle.

It may also be worth your while looking into getting rid of your car and buying something older and considerably cheaper.

I honestly don't think that another re-mortgage will result in you dealing with your debt and starting to save, given that it seems to have happened at least once already and you have simply built up the same debt profile again. You can't indefinitely top-up mortgages to deal with lifestyle overspend.


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## Buddha (5 Jun 2008)

*Re: Refinancing - advise needed*

You have around €73,000 in lifestyle debt. You need to examine how you have managed to run this up. You have a very good income and there is no reason why you cannot live a very comfortable life on this amount without running into debt. That is the past however and you need to get yourself out of this hole.

My concern about the remortgage option, beside the fact that you have topped up previously, is the value you put on your house: how realistic in today's environment is it I wonder? Given that your present home loan is €325k and you have other loans totalling €73k, that's nearly €400k which is 90% of the stated value of the property - if that valuation is achievable.

Does your partner realise the full extent of your debts? Does he/she have responsibility for much of the day to day spending without realising where that these things need to be paid for I wonder?

You and your partner need to get a handle on your spending immediately. Cut back on all unnecessary spending until debts are at least manageable. By unnecessary I mean do you need the item to survive? Learn how to cook lentil soup!

You need to face up to your predicament and take action together. Good luck!


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## Bronte (6 Jun 2008)

*Re: Refinancing - advise needed*

You remortgaged since 2006 yet your debts were not paid off?  Is this correct.  In fact your debts have increased.  You should not remortgage, you are overspending and need to get a grip on it.  First step is cut up your credit cards. You badly need Mabs advice - that's if you are serious this time.


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## Daenis (13 Jun 2008)

*Re: Refinancing - advise needed*

Take Control of your situation now! Make arrangements with your lenders if necessary, go to mabs and follow their advice, we went to Mabs didn't follow the advice and ended up with a judgement on a small loan, arrears on our mortgage and when we wanted to move house the only people who would give us a mortgage were Start mortgages at an extremely high rate which is now 9.95% one year later.


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