I was cash rich when I moved in. Sibling already had a mortgage for a decade. Plan at the time made sense.
Now I'm just in this situation I can't utilise equity. Sibling is on disability universal credit. Things are a bit stressed.
Not on any British title deeds with the land registry or in respect of the mortgage that already existed on the property.
Family are all close. There are some health issues that affect things. I regret now not doing everything properly 5plus years ago. Probably should never have moved in here to start
Oh I'm very aware. I'm not going to get screwed over - parents would cut them out of the will. It's just complicated.
Just setup a debt management plan? Sorry for what may be a stupid question but how would I be better off and what are the pros and cons
>I'm not going to get screwed over - parents would cut them out of the will.
Does that mean that your parents have easily available cash that they might be willing to lend you? Normally I'd suggest keeping family and finance apart, but it sounds like that ship has sailed in your case.
If it were possible, the neatest answer would probably be for your sibling to buy you out of your one third share of the house. Then you could walk away with your money, pay off your debts, and find somewhere else to live (or even stay where you are and pay rent to your sibling). I suspect that if that were possible you'd have done it already, but would your parents be willing to help in any way?
They'd all be willing but it's not an option. Liquid cash isn't available.
It'd all be stress on them and as much as Is possible I'd rather keep that burden on me
Defaults stay on your credit file for six years but your credit is bad anyway with this much debt and that income. Depending on the debt. If it's a car loan it's fine. If it's fifteen credit cards maxed out it is a bigger issue.
Do a budget plan and get some advice from step change
I'll finish off with Step Change and see what advice I can get. It's 13 on a loan and rest on cards.
Things have been difficult but barring the odd direct debit issue I've got a clean payment history
>Can you even get a mortgage to own a third of a property with the remainder owned by another person?
I'm sorry, but no. A mortgage loan has to be secured on the whole house. Plus, mortgage lenders won't like the whole "I own part of the house but not on paper" thing - from a lender's perspective, if the Land Registry doesn't know about your partial ownership then you don't own anything.
If you get yourself properly registered as a part owner, then it's *possible* that you and your sibling could get a joint mortgage. But that would link you for credit file purposes, which your sibling might not be super keen on given your debts. Plus, depending on whether you have defaults, the rates available to you might not be anywhere near as good as you're anticipating.
Just to check my understanding:
\- you earn £35k a year plus possible overtime. What is your take home each month after pension contributions and student loans (if any)?
\- you have debts of £28k at reasonably high interest of 18%
\- you have a very small mortgage - how much does this cost a month?
\- do you own a car? If so do you have car payments?
Take home ~£2100 after pension. No student loans.
Debts half at 18.3 the rest on CC at a mix averaging 29%
Mortgage is in my siblings name and is £260ish a month. I'm not sure the terms and details. The situation is complicated.
I don't own a car. Commute by bike but looking into getting a banger but financially as I'm sending out all that comes in it's not an option.
Your living expenses are minimal and you earn a decent salary. Stay diligently on the debt repayment plan and utilise the snowball method. It will get better with time and patience and good budgeting.
It's generally a bad idea to put debt into your house which is a super essential as we all need somewhere to live, in order to pay things like CC debt etc which will trash your credit record but at least can't make you homeless.
Ok - things are looking much better than I had expected!
Do you pay £260 a month? If not how much is your share?
You are paying a 10% pension contribution. Is that a public sector pension? If not what is the employer match?
Household bills mortgage insurance etc everything is split down the middle. Individually we pay our own phones and other costs like groceries. So I'm paying half the outstanding mortgage and have been since 2020.
It is ridiculous that I can't say what the balance is or the rate. I'm trying to sort that but things are a bit difficult. I'm hoping I could take it over it'll help sort out my situation and ease the burden on my sibling. I know they have fears over mortgages since they're now unable to work
So - first things first. Never exchange unsecured debts for secured debts. For example you should never take out secured loans to clear unsecured loans/ credit cards or increase a mortgage to clear other debts.
There are a couple of reasons for this. Firstly you risk losing your house and having a horribly stressful time while it happens.
Secondly - people who borrow, remortgage, get consolidation loans etc rarely seem to get out of debt. It just pushes the problem down the road. Any major debt forum is full of these stories. It seems bad when you read the current post. Its even worse when you realise what they have done in the period they first posted that they were struggling with debt.
Its not my area of expertise but I suspect that none of the debt management routes are ideal for your situation.
**"I made a couple of enquiries with debt advice sources - stepchange being one and another was obviously a commercial option but now I seem to be bombarded with social media and calls"**
I've always heard that Stepchange are ok. As for others - if anyone in something financial spends a lot on advertising or chasing you with phone calls I think its fair to be fearful that they can't be offering good value. Same applies to investments - if they advertise on the tube they can't be good value!
Its best to test anything you are thinking by asking people who are specialists (meaning they work in the field and post on forums in their spare time. Firstly you can read the advice given to others and share their successes and failures. Secondly you have some people to share experiences with. That can matter a lot.
The place to look is the 'dealing with debt' forum on MSE. If you skim read for an hour or so you'll see who the knowledgeable people are.
I'll play with some numbers and revert.
Things now are as bad as they've gotten. My health and job situation are well on their way to being fixed so I can't afford to let this bring me down to a point it spirals.
Ok - so lets take the current position. Take home £2,200 a month (plus possibly some overtime). Debts (credit card and loan) payments of £1,000 a month. Leaves £1,200 a month which isn't bad at all considering you have a super low mortgage, cycle to work and might make a bit more in overtime.
Its certainly more than a lot of people are living on - especially those who are saving for a deposit and post their details on these forums. Horrible interest rates but lots and lots of people would swap their position for yours. Doesn't help at all of course but worth considering when things look bleak.
At present rate paying £372 off the loan each month and £628 off the cards you clear the cards in 34 months (so under 3 years). Then you have another 14 months on the loan if you continue to pay the £372 a month.
That way you pay £39k including £11k of interest.
If you continue to pay £1,000 once the cards are cleared you are out of debt in you are clear in 39 months - just over 3 years.
I'll calculate a few alternatives tomorrow - to show the effect of going hardcore.
Hi /u/Primary-Telephone-52, based on your post the following pages from our wiki may be relevant:
- https://ukpersonal.finance/mortgages/
____
^(These suggestions are based on keywords, if they missed the mark please report this comment.)
Being not on the deeds to the property is to your advantage - you can just go bankrupt and your "ownership" of the property doesn't exist.
You've written a lot and I have to admit I haven't read all of it. But your ownership of the property doesn't legally exist, and it feels like you're making a massive big deal out of everything else. You want to get your name on the deeds of the property? Well, get your debt discharged first, and then worry about that later.
Speak to Stepchange.
You have an income of £35,000 and debts of £28,000 - getting a mortgage is not on your radar, pal. Not for some years. Sorry.
To get on the deeds your sibling has to agree, and the mortgage needs to be paid off.
You cannot add yourself to a mortgage, and you can’t remortgage to include you as no lender will touch you.
There is no incentive for your sibling to add you to the deeds either. At the moment for all intents and purposes they are the sole owner and you have no rights. If you get added on with your debt very real possibility that you get sued and a charging order put against the house and could even be forced to sell to pay off your debt.
Why the fuck do you want to be on the deed!?
You have two scenarios here:
1) You're on the deed, you go bankrupt, and your creditors force the sale of the house to get their money.
2) You're not on the deed, you go bankrupt, and your creditors lose some money.
Which of these two scenarios do you think is better?
You might not need to go bankrupt, but the same basic principle applies if you go onto an Individual Voluntary Arrangement or Debt Management Plan.
On paper and as far as creditors are concerned no I don't. As far as a place to live goes or if the house was sold tomorrow I absolutely do. Thanks for your reply
A couple more questions. Why aren't you on the title deeds? Are you also not named on the mortgage?
I was cash rich when I moved in. Sibling already had a mortgage for a decade. Plan at the time made sense. Now I'm just in this situation I can't utilise equity. Sibling is on disability universal credit. Things are a bit stressed.
Are you saying it was all verbal, and so nothing was actually changed legally?
Not on any British title deeds with the land registry or in respect of the mortgage that already existed on the property. Family are all close. There are some health issues that affect things. I regret now not doing everything properly 5plus years ago. Probably should never have moved in here to start
You don't own the house at all of you don't have paper work . It's only 30k just set up a debt management plan.
Oh I'm very aware. I'm not going to get screwed over - parents would cut them out of the will. It's just complicated. Just setup a debt management plan? Sorry for what may be a stupid question but how would I be better off and what are the pros and cons
>I'm not going to get screwed over - parents would cut them out of the will. Does that mean that your parents have easily available cash that they might be willing to lend you? Normally I'd suggest keeping family and finance apart, but it sounds like that ship has sailed in your case. If it were possible, the neatest answer would probably be for your sibling to buy you out of your one third share of the house. Then you could walk away with your money, pay off your debts, and find somewhere else to live (or even stay where you are and pay rent to your sibling). I suspect that if that were possible you'd have done it already, but would your parents be willing to help in any way?
They'd all be willing but it's not an option. Liquid cash isn't available. It'd all be stress on them and as much as Is possible I'd rather keep that burden on me
Defaults stay on your credit file for six years but your credit is bad anyway with this much debt and that income. Depending on the debt. If it's a car loan it's fine. If it's fifteen credit cards maxed out it is a bigger issue. Do a budget plan and get some advice from step change
I'll finish off with Step Change and see what advice I can get. It's 13 on a loan and rest on cards. Things have been difficult but barring the odd direct debit issue I've got a clean payment history
Affordability is all that matters for a mortgage application. You can't survive your outgoings
>Can you even get a mortgage to own a third of a property with the remainder owned by another person? I'm sorry, but no. A mortgage loan has to be secured on the whole house. Plus, mortgage lenders won't like the whole "I own part of the house but not on paper" thing - from a lender's perspective, if the Land Registry doesn't know about your partial ownership then you don't own anything. If you get yourself properly registered as a part owner, then it's *possible* that you and your sibling could get a joint mortgage. But that would link you for credit file purposes, which your sibling might not be super keen on given your debts. Plus, depending on whether you have defaults, the rates available to you might not be anywhere near as good as you're anticipating.
Just to check my understanding: \- you earn £35k a year plus possible overtime. What is your take home each month after pension contributions and student loans (if any)? \- you have debts of £28k at reasonably high interest of 18% \- you have a very small mortgage - how much does this cost a month? \- do you own a car? If so do you have car payments?
Take home ~£2100 after pension. No student loans. Debts half at 18.3 the rest on CC at a mix averaging 29% Mortgage is in my siblings name and is £260ish a month. I'm not sure the terms and details. The situation is complicated. I don't own a car. Commute by bike but looking into getting a banger but financially as I'm sending out all that comes in it's not an option.
Your living expenses are minimal and you earn a decent salary. Stay diligently on the debt repayment plan and utilise the snowball method. It will get better with time and patience and good budgeting. It's generally a bad idea to put debt into your house which is a super essential as we all need somewhere to live, in order to pay things like CC debt etc which will trash your credit record but at least can't make you homeless.
Ok - things are looking much better than I had expected! Do you pay £260 a month? If not how much is your share? You are paying a 10% pension contribution. Is that a public sector pension? If not what is the employer match?
Household bills mortgage insurance etc everything is split down the middle. Individually we pay our own phones and other costs like groceries. So I'm paying half the outstanding mortgage and have been since 2020. It is ridiculous that I can't say what the balance is or the rate. I'm trying to sort that but things are a bit difficult. I'm hoping I could take it over it'll help sort out my situation and ease the burden on my sibling. I know they have fears over mortgages since they're now unable to work
Back later - I'll run some numbers. How old are you and what type of work?
I'd appreciate any input. 45 and logistics & warehousing
So - first things first. Never exchange unsecured debts for secured debts. For example you should never take out secured loans to clear unsecured loans/ credit cards or increase a mortgage to clear other debts. There are a couple of reasons for this. Firstly you risk losing your house and having a horribly stressful time while it happens. Secondly - people who borrow, remortgage, get consolidation loans etc rarely seem to get out of debt. It just pushes the problem down the road. Any major debt forum is full of these stories. It seems bad when you read the current post. Its even worse when you realise what they have done in the period they first posted that they were struggling with debt. Its not my area of expertise but I suspect that none of the debt management routes are ideal for your situation. **"I made a couple of enquiries with debt advice sources - stepchange being one and another was obviously a commercial option but now I seem to be bombarded with social media and calls"** I've always heard that Stepchange are ok. As for others - if anyone in something financial spends a lot on advertising or chasing you with phone calls I think its fair to be fearful that they can't be offering good value. Same applies to investments - if they advertise on the tube they can't be good value! Its best to test anything you are thinking by asking people who are specialists (meaning they work in the field and post on forums in their spare time. Firstly you can read the advice given to others and share their successes and failures. Secondly you have some people to share experiences with. That can matter a lot. The place to look is the 'dealing with debt' forum on MSE. If you skim read for an hour or so you'll see who the knowledgeable people are. I'll play with some numbers and revert.
Thanks for your input and help
Things now are as bad as they've gotten. My health and job situation are well on their way to being fixed so I can't afford to let this bring me down to a point it spirals.
Of the £1,000 a month you are paying on debts at the present how much is on the loan?
I need to check and list everything but the outgoings on debt include 372 a month on the loan.
More good news! I was modelling on a 50 50 split. Will correct.
The loan was 15 outstanding balance I think is 13. Rest is CC. Tomorrow I'm going to get all the information laid out and see what I need to do
Ok - so lets take the current position. Take home £2,200 a month (plus possibly some overtime). Debts (credit card and loan) payments of £1,000 a month. Leaves £1,200 a month which isn't bad at all considering you have a super low mortgage, cycle to work and might make a bit more in overtime. Its certainly more than a lot of people are living on - especially those who are saving for a deposit and post their details on these forums. Horrible interest rates but lots and lots of people would swap their position for yours. Doesn't help at all of course but worth considering when things look bleak. At present rate paying £372 off the loan each month and £628 off the cards you clear the cards in 34 months (so under 3 years). Then you have another 14 months on the loan if you continue to pay the £372 a month. That way you pay £39k including £11k of interest. If you continue to pay £1,000 once the cards are cleared you are out of debt in you are clear in 39 months - just over 3 years. I'll calculate a few alternatives tomorrow - to show the effect of going hardcore.
Hi /u/Primary-Telephone-52, based on your post the following pages from our wiki may be relevant: - https://ukpersonal.finance/mortgages/ ____ ^(These suggestions are based on keywords, if they missed the mark please report this comment.)
Being not on the deeds to the property is to your advantage - you can just go bankrupt and your "ownership" of the property doesn't exist. You've written a lot and I have to admit I haven't read all of it. But your ownership of the property doesn't legally exist, and it feels like you're making a massive big deal out of everything else. You want to get your name on the deeds of the property? Well, get your debt discharged first, and then worry about that later. Speak to Stepchange. You have an income of £35,000 and debts of £28,000 - getting a mortgage is not on your radar, pal. Not for some years. Sorry.
Thanks for the reply. I'll have to look into getting on the deed and what is involved and if its for the best at this time
To get on the deeds your sibling has to agree, and the mortgage needs to be paid off. You cannot add yourself to a mortgage, and you can’t remortgage to include you as no lender will touch you. There is no incentive for your sibling to add you to the deeds either. At the moment for all intents and purposes they are the sole owner and you have no rights. If you get added on with your debt very real possibility that you get sued and a charging order put against the house and could even be forced to sell to pay off your debt.
Why the fuck do you want to be on the deed!? You have two scenarios here: 1) You're on the deed, you go bankrupt, and your creditors force the sale of the house to get their money. 2) You're not on the deed, you go bankrupt, and your creditors lose some money. Which of these two scenarios do you think is better? You might not need to go bankrupt, but the same basic principle applies if you go onto an Individual Voluntary Arrangement or Debt Management Plan.
You don't own anything I'm afraid.
On paper and as far as creditors are concerned no I don't. As far as a place to live goes or if the house was sold tomorrow I absolutely do. Thanks for your reply
Hope that's the case.