Thanks cool

Hi chewedtobits,

Pretty much every lender will come to an agreement for reduced payments if you are in financial difficulty, so long as you are honest with them about your situation and current debts. They would rather get the money back eventually, than have to fight for it in the courts, as I'm sure you would prefer to pay it off long term than be taken to court/have your credit history ruined. With regards to the percentage of the payment they would accept, you would need to contact them and discuss it.

Hi

Many thanks for replies,much appriecated, just one final question id like to ask, if im made redundant would my credtors be ok with reduced payments and if so what percentage of the payment would they accept? I would rather pay my debts eventually even if this meant extending the term.

thanks again

Take some professional advice now even though it sounds as if you don't/can't take any action at the mo. Your best bet is to look in Yellow Pages to find a Licenced Insolvency Practitioner. They shouldn't charge you for the advice and as they are qualified and regulated they are truly the best people to help. Once you've spoken to them you will at least know all of your options and can plan depending on whst happens.

Good luck

Hi...lenders won't normally ask the question about redundancy on the application form, many industries are under constant threat of this so it is unfair to ask as it may compromise the application. If they perform an employers reference then this may arise but not usually, providing that payslips and P60's are available?? If you have new rates with your existing lender, you can apply early for a new rate to keep things simple, all this providing that they will accept your existing commitments and deem it affordable. The redundancy policy will cover mortgage payments and the lump sum will be held as a reserve until everything seems clearer. When it is appropriate to pay off debt the highest charging loans will be a priority of course but if the regulations of re-mortgaging insist on consolidation due to affordability the highest balance loans would have to be considered.

You wouldn't really be able to get another mortgage deal while under the threat of redundancy. I expect that this would have to be declared to the lender and I'm sure that they would then have issues with how you would be able to pay the mortgage.

I personally would not use the £30,000 to reduce the debt immediately but wait until you and your partner have found a new job. If you can find a job quite quickly then I would look to remortgage to consolidate some of your existing debt and use whatever is left from the £30,000 to pay off some more. I reckon you could near enough pay off your unsecured debt and save yourself a fortune each month. This is obviously subject to you being able to remortgage to 90% of the value of your property.

Just what I would do though, I'm no expert.

Hi

I posted my horrible situation a few months ago,spirraling debts etc.However my partner and I decide to knuckle down and cut all expenditure to a bare minimum to try to start reducing our massive debts. To date we have been successful even if we were only reducing it by a a small amount each month. Now a massive spanner has been thrown into the works by the threat of redundancy for both of us,also at a time when our mortgage deal is up for renewal.Now we are at a loss of what to do next,in summary our situation is like this.........

£90,000 unsecured debt( loans,c/cards)

£75,000 mortgage ( current value of home= £150,000

£30,000 projected redundancy package.

questions are,do we use the £30,0000 to reduce debt?

use it to continue paying our debts monthly as usual so as not to destroy our credit rating while hoping to get a job as quickly as we can?( we could do this for about 12-13 months)

and finally,can we still get another mortgage deal while under threat of redundancy or unemployed

n.b we both have redundancy cover on mortgage

any advice will be welome

thanks for reading.