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Perfect12
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4 Posts

Posted - 07 April 2018 :  11:05:53  Show Profile  Reply with Quote
Hi all,

Husband has considerable personal HMRC debt for when he was contracting. Weíve spoken with a debt advisor and looking to go down the TD route. Using the equity in our home to repay about 150K of the debt!

Now my concern is what do we give as a reason for the remortgage as itís such a large amount. Anyone been in a similar situ?

Thanks in advance

TDA (Debt Adviser)
Trust Deed Expert



12549 Posts

Posted - 09 April 2018 :  09:17:38  Show Profile  Reply with Quote
Welcome to the forum Perfect12.

We can only advise you to be open and honest with any lender's questions about the purpose of a remortgage.

To do otherwise could leave you exposed.


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Kevin Mapstone
Trust Deed Expert



3584 Posts

Posted - 09 April 2018 :  15:46:02  Show Profile  Reply with Quote
Hi Perfect12

First thing I would say is slow down and go carefully here.

Have you had detailed advice from an insolvency professional yet? If not then I would certainly recommend this is what should happen first - and personally I would seek a second opinion from another firm too given the sums involved.

A couple of questions spring to mind for starters:

- Are you certain that as much as £150k is needed? Does this represent just your husband's share of the equity in your home?
- have you crunched the numbers in terms of the increase in your mortgage payments and is such a large increase affordable?

I hope you don't mind answering - it's just that we've heard a few horror stories on this forum over the years and at the stage you are at right now it is crucial to be getting the right advice.

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Perfect12
New Member

4 Posts

Posted - 09 April 2018 :  16:32:43  Show Profile  Reply with Quote
Hi thanks for the replies. My husband has been to see someone and TD was the advise given. My name is not on our mortgage as I was covered under the spousal act therefore all equity is counted as his which is annoying as would be 50/50 if we split! I donít work as I am stay at home parent so cant show I contribute financially. The figure Iíve given is based on us remorgaging up to 80%, the other 20% we were hoping will come from his parents to buy out our remaining equity. If they canít help us weíll have to sell. The increase in mortgage payments will leave us with no spare Money but still manageable for normal living expenses and the company weíve been in discussion with has advised that weíd not have monthly payments on top.

The debt itself is approx 250k for historical tax. We donít have any other debt but we have savings which will also be taken.

My husband is due to meet with a second company too. Right now weíre not rushing down this route as weíre not under pressure and have only just submitted agreement with HMRC to settle. We donít have the fixed figure yet and it could be months before they calculate it but we already know it will be outwith our means hence looking into this route.
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Kevin Mapstone
Trust Deed Expert



3584 Posts

Posted - 09 April 2018 :  17:41:16  Show Profile  Reply with Quote
That's good that you have a bit of time to work out the best way forward. There are sometimes small differences in the way that different Insolvency Practitioners may approach matters, which can make a difference to how severe or otherwise that the solution may be for you. Of course, valuations can differ between surveyors too, which again could work in your favour if you "shop around" to some degree.

Has a proper valuation been carried out yet, or are the figures just estimates at the moment?

We would always look to get a full valuation done at the start, so that you can plan with a degree of certainty, as would the other firm represented on the site here, I'm sure. Happy to do this if you wish, just click on the "Contact me" button below.

Are the savings all in an account in your husband's sole name too?

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Perfect12
New Member

4 Posts

Posted - 11 April 2018 :  22:50:38  Show Profile  Reply with Quote
Hi,

The house was valued last year so pretty accurate. We will get another valuation and see what can be done in our favour.

Saving are actually invested at the moment but we can sell and remove them, the investment is in his name.
I have my own isa with money in it but thatís separate from him.

Do we have an alternative if we cant raise the rest of the equity?
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Kevin Mapstone
Trust Deed Expert



3584 Posts

Posted - 12 April 2018 :  09:35:01  Show Profile  Reply with Quote
It may be possible to get agreement of creditors to a Trust Deed based just on the equity that can be released. It would boil down to being able to justify to HMRC/any other creditors that the potential return from a Trustee forcing a sale wouldn't be any higher due to the costs involved. It's something we have done successfully on many occasions as long as the figures stack up.

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Perfect12
New Member

4 Posts

Posted - 12 April 2018 :  16:58:32  Show Profile  Reply with Quote
Thatís good to know. Iíll speak to my husband when heís back and give you a shout next week for further discussions.
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