Help! Switching mortgage with poor credit

Honey_B

Can anyone please give me some advice?

I am selling the house I bought with my ex-partner and now want to buy a small flat. I will have about £175,000 deposit and want to borrow around £55,000.

Our mortgage is with the Woolwich and so I thought it would be simple to stay with them, since we were on a good rate. I called and spoke to an advisor who told me that it would all be fine and just a formality to "port" my mortgage across to a new one. He explained it as though I'd keep the mortgage but change the terms. But then I asked about their credit checks, because although my record with the Woolwich is OK (apart from one late payment, have had no problems with them) however my record with other lenders (credit cards) has been less than good and now I have an Experian credit rating of "poor" (584). He told me that it's quite likely that I wouldn't get a mortgage from them, with more than 3 missed loan payments in 2 years. Ironically, after selling the house and downsizing, my finances will be in much better shape - no debts, a good salary and a small mortgage - IF I can get one.

So - any advice? Should I rent for six months to rebuild my credit score and then apply or should I hope that the Woolwich will lend me some more money?

:beer:

Cannon_Fodder

Buy something cheaper and enjoy being mortgage free...!?

Rent, get a decent fixed rate on the savings so you can cover a chunk of the rent from interest, and make sure not the slightest thing is allowed to dent your credit history again.

Honey_B

Thanks for the advice - I wish I could get somewhere cheaper, but because of my children's schooling, I need to stay in this expensive area. And with 3 children, I need something with a bit of space.

Do you think that my rating may rule out a mortgage offer from any reputable lender?