Debt Management Plan Advice UK
50 top tips about IVAs and Debt Management Plans
posted by debts.org at 23:09
If you are suffering serious debt problems, and a debt management plan will not work for you, seek advice about an Individual Voluntary Arrangement (IVA) which can solve your long term debt problems forever.1. What is an IVA?
An IVA is an Individual Voluntary Arrangement, and is formal agreement between the debtor and the creditors. An IVA has to be set up by a licensed insolvency practitioner, and will normally leave you debt-free after five years.
2. What are the IVA guidelines?
To consider an IVA you must be resident in England, Wales or Northern Ireland, and you must have debt problems. You must have a regular income, debts of over £15,000 (you can arrange a debt management plan if your debts are less), and you must be able to keep up the new repayments that will be arranged with your creditors.
3. Advantages of an IVA
An IVA is private, so family and friends don´t need to know about it. After five years you will be debt-free. An IVA acts as a safeguard against losing your home and you can write off up to 75% of your debt. The costs of an IVA are lower than a bankruptcy and you only pay back what you can afford.
4. Disadvantages of an IVA
An IVA normally lasts 5 years, whereas bankruptcy is only one year. The insolvency practitioner may request some equity release from your property. You must be able to pay at least £200 per month, and you must have at least 3 creditors and at least £15,000 of debt. An IVA is legally binding and it will show up on your credit report for up to 6 years.
5. How an IVA works for you and your creditors
Speak to a regulated debt solutions company to discuss your suitability for an IVA. The IVA must offer a higher return to creditors than could otherwise be expected if you were made bankrupt. You must make an honest declaration of your assets and anticipated future earnings. False declarations will result in the IVA application failing. Serious debt problems can be solved, but you have to be honest.
6. Who can apply for an IVA?
Anyone can apply for an IVA if they are suffering debt problems which can´t be covered by a debt management plan, and if their debts could result in the loss of their home if they are declared bankrupt. IVAs are particularly useful to people whose creditors will not accept a more informal debt management plan.
7. The IVA process
If you are interested in learning more about an IVA, contact a reputable debt solutions company and they will assess whether an IVA is right for you. An alternative can always be suggested such as a debt management plan or bankruptcy. You will then come to an agreement about how much you can pay monthly to each creditor. The debt advice company will then make an application to the court for an Interim Order, which means your creditors cannot take any action against you. If 75% of your creditors agree with the proposals then the agreement becomes legally binding.
8. Late IVA payments
If you think an IVA payment will be late for any reason, let the supervisor of the IVA know straight away. If you have a valid reason for late payment, you may be able to delay the payment, but don´t make a habit of it. If payments regularly late, you could end up facing bankruptcy.
9. Can I pay back my IVA early?
It is possible to pay off your IVA early, but you need agreement from the creditors. However they will base an early settlement payment on the actual amount outstanding and not on the reduced rate you would have paid back if the IVA continued to the full term agreed.
10. How can I arrange an early payment agreement?
In order to eliminate your debt early, your IVA supervisor will have to call a meeting of all the creditors, known as a variation meeting. Once agreement has been reached, a new financial statement will be drawn up. Big debt problems can reduce significantly if you find yourself in a new job or you receive funds from a house sale.
11. Why would I change the terms of my IVA?
Nobody has a crystal ball to look into the future. Your circumstances can change for the better or for the worse after you have agreed the terms and conditions of your IVA. You may get made redundant or you may find a new highly paid job, or be left some money. Contact the supervisor of your IVA to discuss the changes.
12. What happens if an IVA Variation Process is rejected
If an IVA Variation Process is rejected by creditors, you need to try and keep up the repayments on the original agreement. If you are struggling to do this, speak to the IVA supervisor to see if there is any alternative. If not, the IVA could fail.
13. What is an IVA Notice of Breach?
If you fail to abide by the terms and conditions of the original IVA agreement you signed, the IVA supervisor will issue a Notice of Breach to you. You will be advised to find a solution for the breach within one month, and you will be required to explain why the breach occurred. If you cannot sort out your debt, and remedy the breach, the IVA could be failed and bankruptcy proceedings could begin.
14. How does an IVA finish?
An IVA ends when you make the last payment as per the IVA agreement. Steps will be taken to ensure all payments have cleared before a certificate of completion can be issued, and is normally within 3 months of the last payment. Help for debt is closer than you think, and there is no need to feel isolated or alone with your debt problems.
15. What happens if I don´t include all my debts in the IVA?
Failure to include all of your unsecured debts in the IVA agreement, means you could still be chased for money when the IVA term is over. The creditor who is owed money has the right to take legal action against you so make sure you include all debts at the beginning of the IVA.
16. What is the difference between an IVA and a Debt Management Plan?
Unlike a debt management plan, an IVA is a formal agreement which arrange for the payment of dividends to your creditors (usually annually) and not monthly repayments. An IVA supervisor distributes the funds each year, taking his fees out. Once all the funds have been paid out of the IVA account, the account will be closed.
17. Does the money in an IVA account earn interest?
Interest is applied to the funds in the IVA account, and the extra money is paid over to the creditors to increase their dividends.
18. What paperwork do I get when the IVA completes?
A certificate of completion will be issued once the IVA has been completed and that will be a signal for the creditors to write off any outstanding debt. The credit reference agencies, the court service and the Department of Trade and Industry will also be informed.
19. Why would an IVA fail?
An IVA can fail for a wide range of reasons. A change of circumstances can mean you no longer have any surplus income or less income than you originally agreed to pay. The IVA supervisor is there to help you with any problems, and a Notice of Breach will only be issued if the IVA falls into arrears.
20. What is the effect of an IVA failing?
If an IVA falls into arrears and you can´t catch up with the payments, an Notice of Termination will be issued by the IVA Supervisor. This will formally bring the IVA to an end and the creditors can chase you for the remaining debt, which no longer carries the protection of the IVA.
21. Who pays for the IVA?
You and the creditors pay for an IVA, and the IVA costs are taken from the money paid by the person in debt, and reduced from the money sent to the creditors. If you are suffering big debt problems or you need UK debts help, make sure you contact a regulated debt solutions company for free debt help and advice.
22. Who contacts my creditors?
The debt management company or debt solutions company in the UK you appoint to arrange your IVA will speak directly to your creditors. Once the IVA has been approved your creditors will never bother you again, as long as the debt repayments are kept up.
23. How can I boost my credit rating after an IVA?
Make sure you pay your IVA repayments on time every time. Get to know what your credit rating is by applying for a free credit report, and check if for errors. Separate your credit file from anyone else´s in the family who may have the same name, and don´t apply for too much credit or your credit report will show footprints which can be seen by other creditors.
24. Why an IVA and not bankruptcy?
An IVA will stop all interest on the debt, and you can usually keep your property. You will be completely out of debt in 5 years and you keep control of your assets. You will not be hampered by restrictions when you want to progress your career and an IVA is easier on your credit rating than bankruptcy. It is also easier to open a current bank account following an IVA.
25. An IVA or debt consolidation
You can seek free advice about IVA, bankruptcy and debt consolidation from a debt advice company in the UK. Debt consolidation loans mean that all your debts will be lumped together and you will just pay back one amount each month. This type of loan may work better for you than an IVA, as with an IVA your assets are scrutinised. Also, employment status is not affected at all with a debt consolidation plan. Seek free debt advice to help you decide what is best for you, and how you can achieve a debt-free future.
26. Beware misleading IVA adverts
Often advertised as a popular alternative to bankruptcy, and IVA is never the less a serious arrangement. Many IVA adverts conveniently forget to mention that if an IVA fails you could still face bankruptcy, your credit rating will be affected for up to 6 years, and you could face dire consequences if the IVA fails. They may also tell you that 95% of your debt can be written off with an IVA whereas 60-70% is much more likely.
27. Why do so many firms advertise IVAs?
Particularly since the credit crunch and recession in the UK, firms offering IVAs seem to have popped up all over the place. If you have serious debt problems, and you are promised that 75% of your debts will be written off, the idea of an IVA may be appealing. But make sure you only use regulated companies to deal with your debt problems in the UK.
28. What to do before you start an IVA
Make sure you fully understand the terms and conditions of the IVA and be aware that you will have to budget for 60 months to make sure you don´t miss any payments. If you own your own home, but are suffering big debt problems, you may need to sell or remortgage your home in order to make the monthly payments. Read about any disadvantages of IVAs which may affect you and your family.
29. Will the creditors contact me during the IVA period?
Legally creditors can still contact you directly but they are more likely to contact the IVA insolvency practitioner if they need to. Creditors should stop all contact with you directly, and if you receive any mail from them you should be able to forward it on to the insolvency practitioner.
30. How do I know if a debt management plan is right for me?
A debt management plan (DMP) is suitable for anyone who has unsecured debts that they cannot repay, and also for people who have lots of equity in their homes but who don´t want to take a second mortgage. A DMP can also be ideal to help solve your debt problems if the debt is less than £12,000.
31. Advantages of a debt management plan
Your debt management company will deal with your creditors on your behalf, and you only make one payment each month which is distributed to your creditors for you. All interest and charges are normally stopped and you only pay what you can afford to. A DMP is an informal agreement which can be changed if you and your creditors are in agreement.
32. Disadvantages of a debt management plan
Debt management plans only deal with unsecured loans such as credit cards and unsecured bank loans. You may still have to deal with priority debts yourself. Debt management plans are not legally enforceable, but if you have high debts and low repayments, you could end up paying off your creditors for years to come, when the aim is to get debt free as soon as possible.
33. Is a debt management plan a loan?
A debt management plan is not a loan, it simply places your debts with a third party so you don´t have to deal with your creditors, and reduces your monthly payments. There are no credit checks to pass in order for you to clear debts, and you need to beware of any unregulated loans.
34. How long will my debt management plan last?
The length of the debt management plan depends on how much debt you are in. If you are worried about debt problems, contact your creditors and ask them if they can help you. Lenders are much more likely to be sympathetic if you approach them first.
35. How much does a debt management plan cost?
It depends which debt management company you talk to. Some will charge a one off fee at the beginning of the debt management plan, and some will be paid commission from your creditors.
36. Advantages of using a debt management company
Although you can try to arrange a debt management plan yourself, your creditors are much more likely to listen to a regulated debt advice company who will present your case clearly and professionally.
37. How much money actually goes to my creditors
With a debt management plan, you only pay what you can afford. Take away your outgoings from your income and see what is left. A percentage of this will probably go to the debt advice company and the rest to your creditors in monthly payments. Never borrow more money to pay off your debts, unless you are advised to take a debt consolidation loan.
38. How do I make debt management plan payments?
You can pay your debt management plan payments by standing order from your account or you can pay by cheque or paying-in slip at the bank or building society.
39. Can I stop a debt management plan?
You can stop or start a debt management plan but you must inform your debt management company who will, in turn inform your creditors.
40. Do my creditors have to accept a debt management plan?
No, creditors are not obliged to agree with the terms and conditions of any proposed debt management plan, but they usually will if it is to their advantage, and they will be getting some of the overall debt paid back. They are more likely to agree to it when they are approached by a professional debt advice company in the UK than from an individual.
41. How will a debt management plan affect my credit rating?
If you are on a debt management plan it is likely to be noted on your credit report. This does not necessarily stop you getting more credit, but your lenders may have made it a condition when they agreed to the DMP that you don´t apply for any more credit until the DMP is paid off.
42. Will I be sent a monthly report if I am on a debt management plan?
A monthly report should be arranged for you through your debt management company, to show the payments, amount still owing, etc., If you are suffering debt problems and you need debt help, contact a regulated debt solutions company in the UK today.
43. Can I get additional debt help and advice in the UK?
If you are working your way through a debt management plan, feel free to contact your debt counsellor in the UK for any additional support, debt help or debt advice which you may need. The debt counsellor will be only too happy to provide you with free debt advice.
44. Can I apply for a credit card while I am on a debt management plan?
Unless your creditors have stated otherwise, there is nothing legally to stop you applying for a credit card while you are on a debt management plan but think hard about the consequences first. Why take action to clear your debts, only to get yourself in more serious debt with a credit card? Look upon the debt management plan as being the first step to a debt-free future for you and your family.
45. Do I have to keep paying interest and bank charges?
Once the debt management plan is set up, and your debt advice company has spoken to your creditors, interest and bank charges should stop, depending on your personal debt situation.
46. Can I put include my secure loans in a debt management plan?
Loans which are secured against something, such as a mortgage or a car loan cannot be included in a debt management plan. If you are falling behind with secure loan repayments contact a debt help company in the UK for free advice and guidance, and never ignore letters from your creditors.
47. Can I lose my house if I am already on a debt management plan?
If you are already on a debt management plan but are suffering mortgage arrears or more serious debt problems as well, you need to contact your mortgage lender as soon as possible to discuss how to eliminate your debts.
48. What debts can I include in a debt management plan?
You can include unsecured debts in a debt management plan including student loans, store card debts, credit card debts, personal loans and overdrafts. Secured loans such as mortgages and car loans cannot be included in a debt management plan.
49. Only use regulated debt help companies
If you are considering an IVA, bankruptcy or a debt management plan, digest all the information from a regulated debt solutions company, and don´t be fobbed off with a plan that does not suit you. Free debt advice in the UK is readily available and if you are suffering big debt problems, you can get help today.
50. Don´t bury your head in the sand
If you are starting to experience debt problems which are not yet serious debt problems, contact a debt counsellor or a debt advice company who can help keep your debts to a minimum and give you free debt advice and help. Never ignore letters from your creditors, and seek debt help as soon as you can. There is no longer any stigma attached to being in debt, and you should never feel awkward or embarrassed to call a debt advice company. Remember, they have heard it all before, and they are in the best position to give you free advice.
Labels: creditors, debt help, IVA guidelines, secure loans
Top 10 hints for house buyers
posted by debts.org at 23:48
1. Shop around to avoid futureTake your time to look around before arranging a mortgage, and don´t feel as though you are wasting anyone´s time. There are still around 10 potential buyers for every new property on the market and it pays to be cautious and avoid any debt problems later on, when you realise you are paying far too much for your mortgage.
2. The low cost of borrowing
The low cost of borrowing and the devaluation of the pound has been one factor behind the recent improvement in the property market. This has resulted in a lot more foreign investment. Don´t over borrow, even if you think you can afford it at the moment. Buyers can suffer a lot of unnecessary debt problems by biting off more than they can chew so be cautious, however the market is performing.
3. Improvement but not recovery
The housing market may be showing signs of recovery, but complete recovery is some way off. Be cautious when investing in property and always take professional, legal advice before signing on the dotted line. You may suffer debt problems or even need to arrange a debt management plan if you credit card debts or store card debts, so think carefully about your whole financial situation before borrowing more cash.
4. Low sales figures and falling prices
The optimistic viewpoint shared among most estate agents, which is obviously the one they want you to hear, is not shared by everyone. Some consultancies state that low sales figures and falling prices in certain areas of the country paints a more accurate picture of what is happening outside London, so don´t be tempted to borrow more money than you can afford, only to find yourself saddled with debt a few years down the line.
5. Bargains for buyers
Buyers can undoubtedly pick up bargains if they shop around, but getting a mortgage is another matter altogether. Find the best mortgage deal for you before choosing the house you want, avoiding disappointment later. If you are suffering debt problems or would like information about a debt management plan, or have mortgage arrears, you can contact a free debt advisory company in the UK.
6. Can I get a mortgage?
Getting a mortgage is harder now than ever, and you can virtually forget it unless you have between 15 and 20% deposit to put down and a top notch credit rating. If you can find between 20 and 40% deposit, you are in a great position to bag a bargain. Even if you do have a sizeable deposit, don´t overspend, as you will still have to make the repayments and could end up seeking debt advice rather than mortgage advice.
7. Property auctions and house repossessions
If you have some spare cash or perhaps have inherited a sum of money, visit a property auction. Prices at auction for houses is normally about 30% lower than at the estate agents and properties sold at auction are often repossessed houses. Prices are so much lower because banks want a quick sale which could benefit you. But be careful. Don´t snap up what appears to be a bargain but may need thousands spending on it that you don´t have. Irresponsible buying at auction can result in debt, house repossession and even bankruptcy.
8. Economic crisis and property
The economic crisis has hit the property market hard, and new builds have been very badly affected. Investors were the hardest hit who hoped to realise a quick profit on their properties but instead saw a quick loss. Don´t buy off-plan unless you are 100% certain of a quick turn around and a quick profit. Off plan investors have lost millions in the past two years, and are now suffering major debt problems and house repossessions.
9. New homes discount
If you are considering buying a new property, you can get some bargains which have been taken back from investors who could not keep up their mortgage payments. You may be able to find a new build for up to 15% less than the original asking price but, again, don´t be tempted if it is out of your budget. Thousands of debt management plans every year are arranged for people who borrow more than they can afford and end up with credit card debts and store card debts on the top of mortgage debts
10.Shared ownership
Shared ownership schemes are now available from housing associations, which have bought properties from developers, and are offering them to first time buyers. Take your time to look into the terms and conditions of shared ownership before committing yourself, but it might be the perfect way to get your foot on the property ladder.If you are suffering debt problems during the credit crunch, debts.org can help you arrange a debt management plan, an individual voluntary arrangement, bankruptcy or we can help you reclaim unfair bank charges or early mortgage completion fees or mis-sold payment protection insurance in any city in the UK, including Liverpool, Leeds, London, Sheffield, Bristol, Bradford, Hull, Nottingham, Wolverhampton, Sunderland, Eastbourne, St Helens, Crawley, Oldham, Blackburn, Sutton Coldfield, Eastbourne, Northampton, Mansfield, Portsmouth, Reading, Luton, Preston, Milton Keynes, Sunderland, Norwich, Walsall, Swindon, Huddersfield or Stoke on Trent. Call us free on 0844 277 7999 or fill in the online claim form.
Labels: Blackburn, Crawley, Eastbourne, Luton, Mansfield, Northampton, Oldham, Portsmouth, Preston, Reading, St Helens, Sunderland, Sutton Coldfield, Wolverhampton
Top 10 ways to ride the recession
posted by debts.org at 23:40
1. Pay off your debtsIf you have any spare cash, use it to pay off your debts. Money saved on your mortgage for example could be used to pay off credit card debts or store card debts or a bank loan.
2. Increase your mortgage payments
If you are benefitting from an interest cut, then why not put your savings towards your mortgage, which can help you avoid any unnecessary or unexpected debt in the future. You will own your own home quicker and you will stand a better chance of refinancing to a better mortgage rate.
3. Open a savings account
Any spare cash you have from interest rate cuts which affect your mortgage can be put into a high interest savings account. Treat this as your ´rainy day´ money and you could earn as much as 10% interest on your money per year. Shop around for the best deals which will see you save money, and not have to worry about debt problems in the future.
4. Invest in the stock market
Take advice and consider investing in the stock market. The best way to make the most of a falling market is to make regular modest investments which won´t break the bank and could include equities and bonds. You could invest your mortgage interest cut saving on the stock market or in premium bonds. Alternatively, avoid debt and debt management solutions by investing your money in an ISA.
5. Payment protection insurance (PPI)
You could invest in payment protection insurance on your existing mortgage or bank loan, which would give you some breathing space if you are made redundant or suffer an accident or injury at work. PPI will normally pay for 12 months of your mortgage if unexpected events leave you without an income, but make sure you read the small print first. Thousands of PPIs have been mis-sold over the past few years, and you can now reclaim money spend on these schemes through reputable and regulated debt advice companies.
6. Invest in your children
If your child was born after 2002, they are automatically given a non-refundable Government trust fund voucher which they can access when they are 18. Help to make their future easier by opening or adding to a child trust fund which is tax-free. The maximum amount which can be paid in to a child trust fund is £100 per month, but this can accumulate to more than £35,000 in the next 18 years. Don´t overstretch yourself if considering a child trust fund or you could end up in debt yourself, but start by paying a modest amount in each month.
7. Pension fund investment to avoid debt
Invest in a pension fund if you have any spare cash, and you will reap the rewards in later life. There are plenty of pension options available to you so take your time to find the right one for you. Beware of investments that carry a lot of risk, or you could find yourself experiencing debt problems and seeking debt advice or even arranging a debt management plan.
8. Consider a health cash plan
Health cash plans can reduce the amount you pay for health treatments. Similar to health insurance policies, health cash plans are less expensive and can be used against medical fees and expenses for opticians, dentists and doctors. With a cash plan scheme, you pay the initial expense of treatment and then claim it back from your cash plan provider.
9. Private school fees
If you are planning to send your children to private school, you can start to save the money early in a tax-free insurance policy until your children reach school age. You may also be able to pay fees early at the current rate which will assure your child´s place at private school in a few years time. Millions of people in the UK are suffering debt problems and seek free debt advice and help every year from free debt solutions companies who can arrange debt management plans, independent voluntary arrangements and even bankruptcy.
10. Shop sensibly to avoid further debt
The Government is hoping, by cutting interest rates that the general population will be out there shopping in the high street again, and spending the money they have saved on the mortgage. If you already have credit card debts or bank loan debts, give the plastic a break and spend some available cash instead on the basics. Alternatively, use the extra money to pay off some of your credit card debts to make life easier.
Debts.org offers people with debt problems a way out. Offering free advice and guidance about debt management plans, Individual Voluntary Arrangements, bankruptcy, reclaiming unfair bank charges, reclaiming mis-sold payment protection scheme cash or simply offering a shoulder to cry on, debts.org helps people in debt in every major town and city in the UK, including Liverpool, London, Leeds, Swindon, Poole, Blackpool, Burnley, Liverpool, Ipswich, Telford, York, West Bromwich, Peterborough, Stockport, Stoke, Brighton, Gloucester, Watford, Rotherham, Sheffield, Cambridge, York, Nottingham, Leicester, Manchester, Bristol and Birmingham. Call us free for free advice on 0844 277 7999 or fill in the online form.
Labels: Blackpool, Burnley, Ipswich, Leeds, Liverpool, London, Poole, Swindon, Telford
75 Mortgage Terms In Plain English
posted by debts.org at 23:13
If you are looking to arrange a mortgage, unless you do your homework first, it can be a confusing experience. There are so many mortgage deals available on the market that you should seek advice from a mortgage broker who will advise and guide you. Mortgage terms used by estate agents, banks, building societies and solicitors are easier to understand when translated into plain English. If you are suffering debt problems before you apply for a mortgage, seek debt advice from a regulated debt solutions company in the UK. When arranging a mortgage, be aware, ask questions and don´t sign anything which may make your debt problems worse:1. Adverse Credit can include bankruptcy
This is the term used about a borrower who has had bad credit in the past including a bad payment record, bankruptcy or a County Court Judgement against him (CCJ).
2. Annual Percentage Rate (APR) can get you into serious debt
The APR relates to the cost of a loan, including interest charges, which is shown as a percentage rate. APR is a standard calculation in the mortgage industry, and enables easy comparisons of mortgages from all lenders. Avoid debt problems by thoroughly checking APR details before applying for credit, a mortgage, store cards or credit cards, which can plunge you into serious debt problems.
3. Assignment
An instrument transferring the secured rights of a mortgage to another party by the original party which possessed those rights.
4. Outstanding mortgage debt balance
The amount of mortgage loan still outstanding at any given time.
5. Understand the Bank of England Base Rate to stay out of mortgage debt
The Bank of England Base Rate is set each month, and banks and building societies use this rate to set the interest rates they pay on deposits or charge on debts. Make sure you understand how the base rate works before applying for a mortgage or you could end up with mortgage debt or serious debt problems in the future.
6. Beware bridging loans and bridging finance
Beware bridging loans if you are already suffering debt problems and seek debt advice before applying for a bridging loan. A bridging loan is a temporary loan made to people who want to buy another property, but are yet to sell theirs. You can end up with serious debt problems if you take out a bridging loan to buy a new property and then yours fails to sell.
7. Insurance for buildings to avoid debt problems
Always make sure your house is insured or you could face serious debt problems if your house is damaged in a fire, a storm or a flood.
8. The Building Society
Different to a bank, the building society is an institution which is owned by its investors, and provides a wide range of mortgages and savings schemes. If you borrow more money than you can afford to pay back from a building society by means of a mortgage or a home loan, you could end up with bad debts, and have to seek debt advice in the UK.
9. Cashback mortgage
You may be offered a lump sum or a certain percentage of your mortgage in cash when you complete your mortgage. Be aware that this may be paid two to three weeks after your mortgage is completed, which means you may not be able to use it for buying another house.
10. Charge or debt secured against property
A charge is an interest in the ownership of a property, and usually translates as a mortgage or another debt secured against the property. If you secure any debt against your property, exercise extreme caution. Most people need a mortgage in order to buy a house, but any other debt secured against your property could leave you homeless if you default on your repayments.
11. Completion on a property
Completion on a property takes place when the ownership is transferred between the seller and the buyer, the seller moves out and the buyer moves in. Never rush completion, and make sure everything is in order and legally binding before signing any contract, or you could end up with serious debt problems or mortgage problems in the future.
12. Conclusion of Missives in Scotland
This is the final part of the purchase process in Scotland. Beware hasty conclusion missives or you could face debt problems or even have to seek debt advice about debt management plans and IVAs in the future.
13. Contents Insurance to avoid debt
Contents Insurance is the insurance you should take out against accidental damage or theft of the contents of your home, including furniture, electrical appliances and furnishings. Home insurance or contents insurance is not obligatory but you are strongly advised to take it out, or you could face serious debt problems if your home is robbed.
14. Property contract agreement
The contract is the document which describes the agreement between the seller and buyer, and how the property will change hands. Read any contract carefully or it could result in you suffering debt problems and seeking debt help in Liverpool, London, Manchester, Plymouth, Northampton, Portsmouth, Birmingham, Walsall, West Bromwich, Nottingham, Mansfield, Bristol or any city in the UK.
15. Conveyancing
Conveyancing is the transfer of a property from one party to another and is usually managed by a solicitor or licensed conveyancer, who will make sure the process runs smoothly. Shop around before hiring a solicitor to do your conveyancing and agree a price before the sale goes through, otherwise you may end up out of pocket and starting life in your new house with serious debt problems.
16. Covenant in the title deeds
A covenant in the title deeds is a condition which the buyer must comply with. A restrictive covenant is one which does not allow the new owner to do something related to the property. Ensure you are aware of any covenants or restrictions in your title deeds before you sign for the house, or you could end up with expensive court costs and resulting mortgage debt in the future.
17. Credit scoring and home loans
Credit scoring will allow the lenders to decide whether to grant you a mortgage or not. You will be asked a range of questions regarding your finances and your answers will be scored by your lender. Depending on the score, your application for mortgage will be accepted or declined. Always answer honestly. If you don´t tell the truth and are found out, not only will you be refused a mortgage this time but it could affect any chances of getting credit in the future, and result in serious debt.
18. Debt Consolidation to ease debt problems
Debt consolidation is the process of combining all of your outstanding debts in to one loan. You can combine credit card debts, store card debts, bank loans and car loans into one lump sum which means you will only have to pay one amount each month. Be careful when considering a debt consolidation loan as the interest rates could plunge you further in to debt than ever.
19. Debts and deeds
Deeds are legal documents that show who the legal owner is of a property or piece of land. Make sure the deeds are in order before buying a property, or you could end up with serious property debt problems later on, or mortgage debt problems.
20. Deposit to secure a loan or mortgage
A deposit is the amount of money paid by a prospective buyer to secure the mortgage loan after exchange of contracts. This deposit is normally 5 or ten percent of the purchase price. Make sure all paperwork is in order before paying any deposit, and avoid seeking mortgage debt advice or even house repossession in the future.
21. Direct Debit to avoid debt
A direct debit is an instruction from a customer to the bank or building society to make regular payments direct from their account. This can save money in the long run and make payments such as mortgage or bank loans easier to handle, but beware unscrupulous companies or lenders who could take more than they are owed and plunge you into serious debt.
22. Disbursements and legal work
Disbursements are various costs for carrying out legal work connected with the remortgaging of your home. If you are considering remortgaging your home, take your time to shop around for the best mortgage deals and offers to suit you, or you could end up paying more than you need to and having to find debt advice in the UK.
23. Discount Mortgages and debts
Discount mortgages sound like a great idea at the outset but don´t let them lull you into a false sense of security. Your mortgage lender may offer you reduced monthly mortgage repayments for two or three years, but budget wisely for when the mortgage increases, and save as much money as you can while the mortgage payments are reduced or you could face massive debt problems in the future.
24. Early repayment charges can mean debt problems
Many banks and building societies charge customers for paying off their mortgages early. If mortgage redemption fees or early repayment of mortgage fees are deemed to be unfair, which many of them are, you can claim them back through a regulated debt management company who will give you free debt advice and guidance in the UK.
25. Easement
Easement is a legal right over land which could cause disputes or even debt problems to buyers in the future if they are not aware of it. It may be a legal right of way or access to an area of land.
26. Negative or positive Equity
Equity is the difference between the value of your property and the amount of mortgage or bank loan you have left to pay on it. Equity release is the release of that money, but be very cautious if considering an equity release scheme for all or some of your equity as it could result in you or your family losing their home or their inheritance.
27. Exchange of Contracts not an exchange of debts
An exchange of contracts is when two parties sign their copies of the contract to exchange the property. These contracts are exchanged by legal representatives from both sides and are legally binding. The buyer normally pays a deposit at this point and the completion date is agreed. Never exchange contracts without proper legal representation or you could face house repossession, bankruptcy or serious debt problems in the future.
28. Financial Services Authority (FSA) help you avoid debt
The FSA is a regulatory authority for the financial industry in the UK, and all lenders and mortgage intermediaries must be authorised and regulated by them. Authorities such as the FSA safeguard your interests when dealing with mortgage firms, banks or building societies, and help to prevent debt problems which can result from dealings with unscrupulous lenders.
29. Fixed rate mortgage and debt advice
If you have been trying to pay off a fixed rate mortgage, which is a mortgage where the interest payment is fixed for a specific time, seek the advice of a professional debt solutions company who can guide you in the right direction to a debt free future. Debt management plans and Individual Voluntary Arrangements can be arranged on your behalf to clear your debts completely if you are having problems with credit card debt, store card debt or bank loan debts. A fixed rate mortgage will normally revert back to a variable rate after an agreed time limit.
30. Fixtures and fittings
Fixtures and fittings are the non-structural items included in the property when you buy it. Make sure these are all clearly listed in an inventory, or you may face having to re-furnish the house from scratch which could cause you some bad debt problems in the UK.
31. Flexible Mortgage can be a debt solution
If you are struggling to keep up with your repayments on a fixed rate mortgage, or if you are applying for your first mortgage, avoid debts and seeking debt help and advice by discussing a flexible mortgage with your lender. A flexible mortgage will enable you to overpay towards the mortgage when you are better off, and pay less when things are tough. You may even be able to take a payment holiday at some stage if you have overpaid.
32. Freehold property or freehold land
If you own freehold property or freehold land, you own absolute ownership of the land the property is on.
33. Full structural survey to avoid debt problems
A full structural survey will help you decide whether to buy the property or not. The survey will pay particular attention to the main features of the property including walls, the roof, the foundations, plumbing and wiring, which can help you avoid property debt problems or mortgage debt problems , or even house repossession in the future.
34. Further mortgage advance
An additional loan on top of your existing mortgage is known as a further advance, and can be taken once your original mortgage has completed. But be careful and don´t borrow more than you can afford as a further advance will also be secured against your property.
35. Gazumping on a property
Gazumping is when a seller pulls out of a sale with you after accepting a higher offer from someone else. If you make an offer for a property which is verbally accepted, try to move things along quickly to get a completion date and avoid getting gazumped.
36. Gazundering
Hmmm a new one on me. Gazundering, apparently, is the term given to the tactic of a buyer offering less than the agreed price for a property just before exchange of contracts. If you are selling a house, refuse any reduced offer so close to completion, as the buyer probably had it planned from day one and you can find yourself with serious debt problems if you agree to a low price under pressure.
37. Ground rent for property
Ground rent is the annual fee which a freeholder charges a leaseholder, and is also known as community fees . When you buy a leasehold property make sure you understand exactly how much you will be expected to pay the freeholder each year, what you will get for your money, and at what percentage rate the fee will increase annually.
38. Guarantor for a mortgage
A guarantor will guarantee to pay your mortgage if you default on any payments. You may be asked to provide details of a guarantor before you are offered a mortgage. Guarantors are not always easy to find, as they are responsible for your mortgage debt if you cannot pay for any reason.
39. Higher lending property charge
A higher lending property charge is payable if you borrow more than 90% of the value or purchase price of your property. These rates vary and it is worth shopping around to find the best deal to suit you and to make sure you will not be left struggling with debt problems a few years after signing for your mortgage.
40. Home Buyer´s Report
A home buyer´s report is a survey which is offered by the mortgage lender and is prepared by the company´s own surveyor. This report will take into consideration the general structural condition of the property but is not an in depth survey. If you find you have borrowed too much and are struggling with mortgage debt or mortgage arrears, you can arrange to pay off your credit card debts or store card debts with the help of a debt management plan which will reduce your monthly outgoings.
41. Home Enviro-search
A home enviro-search involves a detailed history of every UK region with regard to floods, subsidence and land contamination. This will help you to assess the area you want to buy property in. Imagine finding your dream property only to be flooded out 6 months after buying. Avoid major debt in the future and carry out an enviro-search before buying your property.
42. Initial disclosure document
An initial disclosure document is a paper designed to help you to compare the services provided and the fees charged by lenders and intermediaries.
43. Interest only mortgage and debt problems
An interest-only mortgage means you will only pay the interest off the amount borrowed for a set amount of time. You may have arranged to pay interest only for the first three years for example, but watch out, you may be in for a shock when the repayments shoot up after the agreed period of interest only. You may want to put some money away to pay off the remainder of the loan when the interest only period finishes. Seek professional advice before accepting mortgage conditions and if you are already in debt, or suffering serious debt problems, contact a professional debt management company who can give you free debt advice in the UK.
44. Joint Mortgage
A joint mortgage is one with more than one name on the contract.
45. Joint Tenants
Joint tenants is a term for ownership by couples which means that when one dies, the property passes automatically to the living partner. A similar term is Tenancy in Common. If you are suffering debt problems after the death of a partner, or mortgage arrears in London, Luton, Liverpool, Oldham, Blackpool, Manchester, Carlisle, Norwich, Bournemouth, Cardiff, Mansfield, Burnley, Huddersfield, Swindon or any UK city, you can get free debt help and advice from a professional debt solutions company.
46. Key Facts
Illustration (KFI) and debt adviceA KFI (that´s a KFI not a KFC), contains key mortgage information which will help you to compare the costs and features of different mortgages to find the right one for you. Take some time to compare mortgage terms and conditions thoroughly as this can save you a lot of hassle in the future and will save you having to seek debt advice and debt help in the UK.
47. Land Certificate
A land certificate proves ownership of a property and is supplied from the land registry.
48. Land Registry
The Land Registry is a government organisation which holds records of all registered properties in England and Wales.
49. Land Registry Fee
and debt help in the UKA land registry fee is one that is paid to register your details if you have either bought a property or changed your mortgage lender. If you are suffering debt problems in the UK after falling behind with your mortgage payments or you have mortgage arrears, you can talk to a trained debt counsellor free of charge, who will give you free advice and guidance.
50. Life Assurance to avoid debt
Life assurance is an insurance that pays out on the death of the policy holder and offers some debt relief for your family. Debt help and debt advice in the UK is free with many regulated debt help companies, and you should not be embarrassed to ask for debt advice if you are suffering debt problems after the death of a loved one, redundancy or an accident or illness.
51. Local Authority Search
to avoid debt problemsA local authority search will uncover any major road building or planning permissions that will take place in the area you want to buy a property and you can decide what impact this could have on your house.
52. Loan to Value
(LTV) and property valueAn LTV is the amount of mortgage expressed as a percentage of the true value of that property. If your mortgage amount is £90,000 and your property is valued at £100,000, then your loan to value is 90%.
53. Calculate monthly interest
This is the method of calculating mortgage interest on a monthly basis. If you are falling behind with your mortgage repayments or have mortgage arrears, you should seek free debt help, advice or counselling. You may be able to arrange a debt management plan to pay off credit card debts or store card debts, which will free more money up for your mortgage.
54. Mortgage deed and debt advice in the UK
A mortgage deed is a legal document which relates to the mortgage lender´s interest in the property, and outlines their legal rights regarding the property. Ensure you seek proper legal advice when buying or selling a house and don´t be duped into signing something you are confused about or you could end up having to seek debt advice in the UK or borrowing more money than you can afford to put things right in the future.
55. A mortgage offer from the lender
A mortgage offer is the amount of money the lender offers to you in the form of a mortgage. Never borrow more money for a mortgage than you can reasonably afford to pay back or you will suffer serious debt problems and have to seek debt help and debt advice, or even have to arrange a debt management plan, an individual voluntary arrangement or bankruptcy.
56. Payment Protection Insurance
can be mis-soldPayment protection insurance is designed to pay your monthly mortgage payments for a set amount of time if you find yourself unable to work after redundancy, accident or illness. However, thousands of payment protection insurances (PPIs) have been mis-sold over the years, and if you think you have a case to reclaim money from a mis-sold PPI, contact a debt help company who can help get your money back.
57. Mortgage Term and mortgage help
The mortgage term is the amount of time agreed with the bank or building society for the mortgage to be repaid. This is typically 25 years but can be shorter or longer, depending on your mortgage agreement. Try to pay off your mortgage as quickly as you can, and avoid debt problems or ongoing mortgage payments for more years than you need.
58. Negative Equity on your home
Negative equity can equal debt problems. When the sum remaining on your mortgage is higher than the current value of your house on the market, this is called negative equity.
59. The NHBC and ten year warranty
The National Building Council offers a warranty scheme for new properties which means that if any major structural defects occur within ten years, you are covered for repair.
60. Ombudsman and housing disputes
An ombudsman is an independent professional body which helps settle differences and disputes between consumers and companies, such as solicitors, insurance companies and estate agents.
61. Planning Permission
for new buildingThis is the permission you need from the local council or planning authority before building on to an existing property or changing the use of the building. Never attempt to make major alterations or add extensions to a property without seeking planning permission as it could result in you having to pay thousands in fines or ripping down the building altogether which could plunge you into serious debt.
62. Premium payment
A premium is the payment you make regularly, monthly or every year to an insurer for an insurance policy, and could refer to home insurance or contents insurance.
63. Private Sale of a property
The private sale of a property is one which does not involve an estate agent. If you choose to sell your property without the help of an agent, you can save a lot of money in commission fees, but take professional advice before going ahead and always use a solicitor before exchanging any paperwork or you could end up facing serious debt problems as a result of your DIY house sale.
64. A product mortgage fee
A product mortgage fee can be charged when you first apply for a mortgage. This fee reserves the mortgage and covers administration costs. It is also known as an arrangement fee, but be sure to shop around and find the best deal. If you pay out large amounts for mortgage arrangement and solicitors, you could leave yourself facing mortgage debt and mortgage arrears in the future.
65. Remortgage your house to avoid debt
One way of freeing up some capital is to remortgage your house. This involves the process of moving your mortgage from one lender to another, and can incur fees, so to avoid debt, read the terms and conditions carefully before remortgaging.
66. Sole agency agreement
A sole agency agreement means that you will only have one estate agent to act on your behalf when selling your property. This can prove tricky if other agents approach you for viewings so weigh up all your options before signing a sole agency agreement to avoid having to refuse viewings and possibly create debt problems if the property doesn´t sell as quickly as expected.
67. Stamp Duty explained
Stamp duty is a tax which must be paid on a property at the time of completion when you buy it. When working out a budget and expected outgoings after buying a property, remember to include stamp duty, solicitors fees and any extras you may incur before completing on the property so you can avoid seeking debt advice in the UK.
68. Subject to Contract
Subject to contract means that an agreement is not yet legally-binding, and can still be changed. Take the advice of a solicitor for any property transactions as there may be confusing issues in the deeds, which could leave you seeking debt solutions later on.
69. Title in the deeds
The title is the record of ownership of a property and the evidence of which is recorded in the title deeds.
70. Total amount payable
This refers to the total cost of mortgage payable.
71. Tracker Mortgages can help you avoid debt
Tracker mortgages follow movements in the Bank of England base rate, and the interest is set at a level just above or below the base rate. Your payments will fall into line with the base rate, going up when the base rate does, and going down when it falls. Tracker rates can be arranged for a set amount of time, usually 5 years.
72. Equity Transfer
A transfer of equity is what happens when a person or persons are added to or removed from a mortgage agreement. Always seek professional advice if you are considering equity transfer, or you could suffer serious debt problems.
73. Under Offer
If a property is under offer, it means the seller has provisionally accepted the buyers offer. However, if you are buying, don´t take this as meaning the property is definitely yours until completion.
74. Valuation of a property
A property valuation is carried out for mortgage purposes, usually by the bank or lender to make sure it is worth the amount requested for mortgage. If the property values up, don´t be tempted to borrow more than you need as you could get yourself in to serious debt a few years down the line if your circumstances change.
75. Valuation Fee
Unless you have a special arrangement with the lender, you will be charged a valuation fee before the bank arranges to have a valuation carried out. Only arrange for a valuation if you are serious about buying the property or you could find yourself in debt before the property has even been bought.
If you are experiencing debt problems or you need help with free debt advice, help or guidance in Preston, Milton Keynes, Newcastle, Reading, Southampton, Derby, Dudley, Luton, Walsall, Bournemouth, Huddersfield, Swindon, Liverpool, Nottingham, Burnley, Bolton, Blackpool, Middlesbrough, Oxford, Telford, York, Watford, Slough, Gloucester, Cambridge, Exeter or any UK city or town, debts.org can help. Call our free advice line on 0844 277 7999 or fill in the online form for professional and friendly debt help.
Labels: 32. Freehold property, Easement, Flexible Mortgage
Seven ways to deal with mortgage arrears debt
posted by debts.org at 23:59
Debt problems can become serious debt problems within just a few months if you are in arrears with your mortgage. Here are seven ways to reduce the risk of home repossession and give you a debt free future:1. Pay off arrears quickly
Start to repay your mortgage arrears as quickly as possible as arrears can lead to extra charges, which will increase the amount you owe. If you arrange to pay off mortgage arrears quickly, you will have more money in the long run and you can avoid serious debt problems.
2. Extra mortgage payments to avoid debt problems
If you can make extra mortgage payments, then do so. You can avoid serious debt and serious mortgage debt by paying a bit extra each month to pay off your arrears. Your mortgage lender will probably be in agreement with this, as long as you are making an effort to clear your debts.
3. Include the arrears in the mortgage
You may already have a debt management plan arranged, and you may be facing up to more debt with mortgage arrears. Ask your lender if he can add your mortgage arrears to your total mortgage balance, which will spread the arrears over the period left on your mortgage. This will mean that your monthly payments will increase, but will give you some breathing space. You can get free advice from debt management companies about re-mortgaging, bankruptcy, debt management plans and individual voluntary arrangements.
4. Extend the mortgage to solve debt problems
If you have a repayment mortgage which you have been paying back for a long time, you could ask your lender to extend the term to 25 years again for the remaining amount. This means your monthly payments will reduce but you will be making them for longer, possibly into retirement. Make sure you understand the implications of extending the time of your mortgage before signing anything. This is not an easy way out as the money will still have to be paid back at some stage.
5. Delay mortgage arrears to help solve immediate debt
If you are suffering debt problems, and struggling to pay your mortgage arrears, ask your mortgage lender if you can delay paying arrears for a certain amount of time. Debt problems in the UK are increasing and you should talk to an independent debt advice company if you are struggling to make ends meet.
6. Payment holiday for mortgage debt
If you have an interest only mortgage, you may consider taking a payment holiday if your lender will allow it. This means that if you have an endowment policy which is linked to your mortgage, ask the endowment company if you can stop paying in for a limited period of time.
7. Selling your endowment policy
If your endowment policy has been running for several years, you could use the amount in the policy to pay off your mortgage arrears. You can cash in or sell the policy after taking advice from the mortgage lender and the endowment policy company. Make sure it is worth your while, as, if you cash in your endowment policy early, you could be losing out on a much bigger cash sum when it matures. Thousands of people get into serious debt every year in the UK by cashing in endowment policies early, only to find there are other ways to solve their debt problems.
If you are suffering debt problems and feel there is nowhere to turn, or you want some friendly and professional advice about debt management plans, individual voluntary arrangements or bankruptcy, or if you want to reclaim unfair bank charges in Liverpool, Leeds, Peterborough, Middlesbrough, Lincoln, Grantham, Burnley, Manchester, Poole, Sunderland, Huddersfield, Mansfield, Nottingham, Ipswich, Telford, Milton Keynes, Derby, Northampton, Portsmouth, Luton, Preston, Telford, York, Stockport, Brighton, Hull, Bradford, Wolverhampton, Scunthorpe, Carlisle, Swindon, Stoke or any town or city in the UK,contact debts.org free on 0844 277 7999 or fill in the online claim form.
Labels: Bradford, Brighton, Derby, Hull, Ipswich, Luton, Mansfield, Milton Keynes, Northampton, Nottingham, Portsmouth, Preston, Scunthorpe, Stockport, Telford, Wolverhampton, York
Top ten house repossession tips
posted by debts.org at 23:56
House repossessions hit a 12-year high in 2008, with over 200,000 home owners more than three months in arrears with their mortgages. If you want to avoid mortgage debt or house repossession, consider the following ten tips:1. Flexible mortgage terms
Make sure you understand your mortgage terms to avoid debt problems later on. Most mortgages have some flexibility built in, so if you pay any extra in advance, you should be able to pay a reduced mortgage when things are difficult financially, or you may even be able to take a payment break.
2. Check the benefits you can claim
If you are unemployed and suffering debt problems or seeking debt advice in the UK, you should make sure you are getting the benefits you are entitled to. Also check if you have been paying mortgage payment protection insurance which could cover your mortgage payments for up to a year. If you have been mis-sold payment protection insurance you can reclaim the money paid with the help of a debt advice company. Also check with your benefits office to see if you are entitled to any help from the government with your mortgage repayments.
3. Check your budget before contacting your lender
Draw up a budget and note all of your outgoings and income before you contact your mortgage lender. Use an online mortgage calculator or online budget calculator to help you. If you are in need of free debt advice or information about debt management plans or individual voluntary arrangements, you should contact a regulated debt solutions company.
4. Face up to your mortgage debts
Keep in touch with your mortgage lender, and never ignore letters or phone calls. There are several options available to you if you are having problems paying your mortgage, or if you are suffering serious debt problems. The longer you leave it, the less sympathetic your lender will be, so act quickly when your debt problems start or you miss the first mortgage payment.
5. Consider your mortgage options to stay out of debt
Your mortgage lender may be able to offer you low cost alternatives to your current mortgage, such as reduced monthly payments for a set period of time or extending the term of your loan. You may even be able to take a mortgage payment holiday if your lender agrees to it. Address your debt problems as quickly as you can, or serious debt problems could follow. Debt advice is free in the UK with regulated debt help companies.
6. Mortgage arrears fears
If you fall into mortgage arrears, contact your lender immediately. If you have missed a couple of payments and you receive a letter from your lender, respond to it as quickly as possible. By failing to reply, you will be more likely to suffer house repossession. Always try to negotiate with your lender before they start legal action. You have nothing to lose by speaking directly to your lender.
7. House repossession and keys
Don´t hand the keys back to the lender and walk away. You will still not be free of debt. Seek independent advice first from a regulated debt company. Your debt problems could get worse and your name will appear on the mortgage repossessions register if your house is repossessed, which could affect any mortgage application in the future. If you can sell the house, then do so. Remember that if the house is repossessed and sold at auction, if there is any shortfall before the price it reaches and the money you owe, you will still be liable to pay that sum back. The lenders legally have 12 years to get the money back from you.
8. Mortgage court case
If the case against you goes to court and you don´t come to an agreement with the lender, make sure you turn up. The lender is likely to be at court to try and get an order of possession, but if you present an acceptable offer to repay your mortgage arrears, proceedings could be stopped by the judge. If you can´t afford to pay the full amount back, then make a reasonable offer to clear your mortgage arrears, and you may be in luck.
9. Your rights and the bailiffs
Bailiffs have to give you seven days to vacate your premises and can use reasonable force to enter the premises. Remember that the lender may have the legal right to repossess the house, but not the contents, so an agreement must be reached with them as to when you can collect your goods.
10. Beware sell to let schemes
Schemes which offer to buy your house and rent it back to you can leave you with serious debt problems. Always read the small print and make sure you can afford the rent. You could end up being evicted if you default on the rent payments. Smelling desperation, sell to let companies will also be offer you a price which is far less than your house is worth.
If you are falling behind with your mortgage payments or have mortgage arrears or serious debt problems, contact debts.org free on 0844 277 7999 or fill in the online claim form. If you want to reclaim bank charges, claim for mis sold payment protection insurance or PPI, or arrange a Debt Management Plan (DMP) or an Individual Voluntary Arrangement (IVA) in London, Liverpool, Burnley, Luton, Dudley, Derby, Reading, Plymouth, Southampton, Preston, Milton Keynes, Sunderland, Bournemouth, Southend-on-Sea, Newcastle, Middlesbrough, Oxford, Poole, Blackpool, York, West Bromwich, Peterborough, Stockport, Brighton, Slough, Gloucester, Watford, Rotherham, Cambridge, Exeter, Sheffield, Bristol, Hull, Bradford, Wolverhampton, Coventry, Stoke, Leicester or any other town or city in the UK.
Labels: Blackpool, Bradford, Brighton, Bristol, Cambridge, Exeter, Gloucester, Hull, Peterborough, Rotherham, Sheffield, Slough, Stockport, Watford, West Bromwich, Wolverhampton, York
10 tips to avoid house repossession
posted by debts.org at 23:51
1. Mortgage arrears and serious debt problemsMillions of people in the UK are facing serious debt problems, mortgage arrears and even home repossession. If you ignore the bank statements and the letters from mortgage lenders, your debt problems will get worse. You will find a debt solution if you make the effort to contact a debt advice company. You can get out of debt at little or no cost in the UK today, and there are several options available to you if you are suffering minor or serious debt problems.
2. Check all mortgage paperwork
Take the time to sit down and go through every bit of paperwork you have relating to your mortgage. Read the small print so that you thoroughly understand the terms and conditions and check when you will be in danger of house repossession if your mortgage is in arrears.
3. Address your mortgage arrears
Once you understand the seriousness of your mortgage arrears, you can take steps to get debt advice or debt help in the UK. Don´t bury your head in the sand but make sure you understand the extent of your mortgage debt problem before contacting a debt advice company who will help you and give you free guidance.
4. Monthly mortgage payment debt
Find out how much you are expected to pay monthly, when this is likely to change, whether it has gone up recently and whether it is likely to go up when your mortgage is next reviewed.
5. Be honest with yourself
Be honest with yourself and with your lender to avoid more mortgage arrears and debt problems. Can you continue paying your current monthly payment? Can you afford it over the next few months, and more importantly, if your mortgage increases again, can you manage the payments?
6. Show commitment and willing to your mortgage lender
Check how many payments you have missed. If your mortgage arrears are the result of unemployment, redundancy or a short-term debt problem which may be resolved in a couple of months, contact your mortgage lender and explain this. If you have mortgage arrears and debt problems which are likely to change for the better, offer to pay your missed payments back over
6 months. Take the bull by the horns and contact your lender before he starts to add interest and costs to any mortgage arrears. Any arrangement you make to clear your mortgage debt, you must stick to – so make sure it is achievable before offering to pay off the amount you owe.
7. Mortgage is a priority payment
Understand that paying your mortgage is a priority payment. A mortgage loan is secured against your home, which means if you fail to keep up the mortgage repayments, you could face house repossession. If you are also struggling with credit card debts, store card debts or bank loan debts, pay your mortgage before paying unsecured debts.
8. Work out your total debts and take advice
Work out how much your total debts amount to. Include everything in your calculations including charges, late payment fees, court costs. Pay the arrears back as soon as you possibly can. Consider selling household goods, cashing in an insurance policy, selling a car or caravan, or even taking a part-time job in the evenings to clear your mortgage debt.
9. Going to court for mortgage debts
If your lender is taking you to court, write down your side of the case, to present to the judge on the day of the court case. Put down concrete proposals which are manageable and outline how much you can pay back each month to clear your mortgage arrears. Put your case across clearly to the judge, and there is every chance that your house will not be repossessed.
10. Repayment mortgage debts
If you are struggling to pay back a repayment mortgage, where you will pay back the amount you borrowed plus interest, ask your lender if he can arrange an interest free mortgage for 6 months, which should give you some breathing space. This will make your payments less for that amount of time. Lenders will treat you much more sympathetically if you make a sensible suggestion for repayment, before they start to threaten you with court action or house repossession.
Debts.org helps people to get out of debt, and gives free debt advice, arranges Individual Voluntary Arrangements (IVAs), Debt Management Plans (DMPs) and can even reclaim unfair bank charges or mis-sold payment protection insurance in Liverpool, Luton, Newcastle, Stoke, Colchester, Oldham, Burnley, Manchester, St.Helens, Crawley, Blackburn, Sutton Coldfield, Eastbourne, Portsmouth, Northampton, Brighton, Stockport, Poole, Oxford, Middlesbrough, Bolton, Ipswich, York, Telford, Rotherham, Dewsbury, Huddersfield, Sheffield, Bristol, Hull, Nottingham and every other town and city in the UK. Call our free debts advice helpline on 0844 277 7999 or fill in the online form.
Labels: Bolton, Brighton, Dewsbury, Eastbourne, Huddersfield, Ipswich, Middlesbrough, Northampton, Oxford, Poole, Portsmouth, Rotherham, Stockport, Telford, York
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- 50 top tips about IVAs and Debt Management Plans
- Top 10 hints for house buyers
- Top 10 ways to ride the recession
- 75 Mortgage Terms In Plain English
- Seven ways to deal with mortgage arrears debt
- Top ten house repossession tips
- 10 tips to avoid house repossession
- Top ten list for first time home buyers
- 5 ways to avoid house repossession in a recession
- 10 ways to bridge the pension gap
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