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I am asking for my sister who is too embarrassed to join the forum at the moment. IVA is out of the question for her as she has reconsolidated so many times and now everything is on the house plus a secured loan. Bankruptcy is out of the question because of her job. She is in serious trouble - last remortgage was with a very un-mainstream lender (that sounds odd)through an FA who wasn't doing her any favours - anyway the fixed term finishes in October and will go up to around (I think) 9%. She is on interest only now and is 3 months in arrears - she certainly won't be able to make payments in October. She has very little equity left in the house but has just put it on the market to downsize. I don't think she has many options open to her as I said earlier IVA and Bankcruptcy a no go. Options as I see it:

Hope she sells quickly - but I doubt that.
I did suggest speaking to the CCCS or CAB to see if there was anyway they could intervene just to take the pressure off.
Consider an arrangement where she sells the house to a company and then rents it from them but she wants to make sure she contacts a reputable company.

She doesn't really want to leave the house (children grown up and left but the house is her haven).
She has a very stressful job and is drinking a lot with the pressure of that and the money, she is not sleeping and I am worried for her health.

She will get about £40k superannuation in about 18 months and could possibly get more and take a lower pension. She was thinking she could move to a smaller place (flat)with a good deposit and small mortgage in retirement.

She is trying to ask around to see if any other mortgage company would re-mortgage her at the moment.

Any thoughts welcome.

Hi Elizabeth. It may possibly be worth contacting Andrew Graveson from Brightoak.
He dealt with our remortgage. I would think, if there is anything on the market suitable then he could find it.
xxxxx

i think the best thing for her to do is talk to an ip firstly, sell the house with a view to renting and going in to an IVA, does she have much equity?

Probably not much equity between 20k and 30k when any fees and selling fees paid. Yes I had thought about contacting Andrew and I will try emailing tomorrow.

Thanks

Elaizabeth, hes very proffessional and puts you at ease straight from the off so nothing at all for your sister to be nervous about.
Trust me, i was probably his worst client to date with the ammount of phone calls i made over one thing or another and you know what? in the end it was more like chatting to a friend who so much wanted to help and i have said it lots on the forum before but i never have and never would hesitate in recomending him xxxxx

Andew is on annual leave until next Tuesday - but I do not think he will be of much help Elizabeth. For someone in debt, 80% loan to value is perhaps the best mortgage deal available at the moment - and a sale/rent back is unlikely to work as most of those companies will only offer 70-80% of the full market value.

I think the best thing that she can do is sell, and keep the mortgage/secured loan companies informed. From what you are saying she does not have any unsecured debt, so an IVA is not relevant. Most secured loan companies will be sympathetic and helpful so long as their customers keep them up to speed with progress.

Thank you for the response Melanie. I thought she was a hopeless case. She has spoken to her mortgage lender but they are totally unsympathetic as they are not a main stream lender and they just keep whacking charges on. She should have looked at an IVA last time she thought about reconsolidating but as she is at court a lot with her job she just felt embarrassed and that everybody would find out - I did tell her they wouldn't but she wouldn't listen. She is trying to sell but market very down at the moment as we know.