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Bit of a unique situation. Need some advice please.

Kisstheblade
Posts: 4 Newbie
Need a bit of advice please.
My parents helped my wife and i buy a house in March of this year. Basically they lent us the money to buy a burnt out derelict house. I spent 3 months fixing it up and we're now moved in about 2 months now. I now need to get a mortgage on the house to pay my parents back. But i lost my job back in November 2008 and was out of work for 4 weeks until i got a temporary low paid job which i was in for about 3 months. I was lucky enough to get a permenant job again back in the field of my expertise. I sold my car during the period of employment and got a banger to drive about in. The money from the car was used to pay bills and but nappies etc for my wee one.
But with loosing my job and then having lower income for 3 months and fixing up the house i now have bad credit and i'm worried about getting a mortgage. But i have an idea, but don't know whether its realistic or not.
My house is now worth at least £130, 000 (worse case scenario) and i owe my parents around £92, 000. Can i get a mortgage using the equity in the house as part of my deposit and for paying off some of my debt? My credit history was good up untill Nov 2008, will the mortgage company take this into account?
Any help appreciated.
My parents helped my wife and i buy a house in March of this year. Basically they lent us the money to buy a burnt out derelict house. I spent 3 months fixing it up and we're now moved in about 2 months now. I now need to get a mortgage on the house to pay my parents back. But i lost my job back in November 2008 and was out of work for 4 weeks until i got a temporary low paid job which i was in for about 3 months. I was lucky enough to get a permenant job again back in the field of my expertise. I sold my car during the period of employment and got a banger to drive about in. The money from the car was used to pay bills and but nappies etc for my wee one.
But with loosing my job and then having lower income for 3 months and fixing up the house i now have bad credit and i'm worried about getting a mortgage. But i have an idea, but don't know whether its realistic or not.
My house is now worth at least £130, 000 (worse case scenario) and i owe my parents around £92, 000. Can i get a mortgage using the equity in the house as part of my deposit and for paying off some of my debt? My credit history was good up untill Nov 2008, will the mortgage company take this into account?
Any help appreciated.
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Comments
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Speak to a mortgage broker - it's free.I am an employment solicitor. However, my views should not be taken to be legal advice. It's difficult to give correct opinion based on the information given by posters.0
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What is bad about the credit history, be specific, can give you a better idea then!I am a Mortgage Adviser
You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Have you got a copy of your up to date credit file?
If not, get one asap, and discuss this with a whole of market mortgage adviser.
The figures look ok, although you have not posted your incomeI am a Mortgage AdviserYou should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
With regards to bad credt - I have 3 credit cards and 2 loans. I have missed payments and been late with payments. (only since being laid of in Nov) I'm currently in arrears with one of my loans but have an agreement with them and will have the arrears paid by mid sept. Credit cards: I have about £750 on one card, £2200 on the other and £5500 on the third card. I have one loan with £12k left on it for next 5 years and the other loan has about £4k on it for the next 2 years. I currently earn 24k a year with a payrise due in dec and my wife earns 17k. She has a loan of £254 per month which finishes in July 2010. All i want is to be a level with everyhting being paid every month. If i wasn't in arrears or late with payments and just had a "normal" month i'd have money left at the end of the month.
If i could at least get rid of my credit cards or 1 of my loans i could easily afford the rest. I also pay for the interest on the money my parents lent me which is about £450 per month.0
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