Mortgage with Bad Credit Rating

mkln

Hi,

I am currently have a property worth approx £295K with a £125K Mortgage. My partner is not on the mortgage, I am currently trying to re-mortgage for £70,000 to clear cc debts and a loan £25K also some to include home improvements. My current lender will only agree to £30K and I have contacted a a broker who can only get £40K because of late payments, therefore a poor credit rating. I have no defaults but one cc will default on 4th Septmber.

I am currently paying £670 mortgage and am able to comfortabley go to £1300 per month. With all our debt at the moment the repayments including mortgage are approx £2500 per month, hence the late/missed cc payments. If I could consolidate everything I will be able to keep on top of my finances. I need to speak to broker/advisor that deals with poor credit rating but I don't know who to trust as there are so many on the internet.

Is anyone able to offer some advice please,?

Mrs_Bumble

So if the CC is going to default on 4 September there is either missed payments or arrangement showing on credit file? Any other missed payments across the credit file?

You are looking to increase your current mortgage from £125K to £200K to clear all other debt is that the case? That is a lot of borrowing on one income, what is your annual income? Who is your current mortgage with?

herbiesjp

You need to get a copy of your credit file via Experian or Equifax

You then need to discuss your scenario in great detail with a whole of maket mortgage adviser

If the figures are correct i.e. mortgage amount and property value, you may have a few options available, however you will not be getting a mortgage from the high street

However, if it means improving your situation now, it may well be worth looking into. But you need to make sure you fit criteria on all fronts.

mkln

Yes, It is alot of borrowing but I am paying out a lot at the moment in CC repayments.

My current mortgage is with the Abbey, and I do realise that I will have to go elsewhere other than a High Street brand, I just don't know who to trust??

Any suggestions of mortgages with bad credit rating?

I have a full Credit Report from Experian and it shows missed/late payments.

Thanks

herbiesjp

Can you ask family or friends for recommendations?

Mrs_Bumble

What is the income? As non high street lenders are still not going to lend you more than you can afford.

Rather than attaching all the debt to the house it might be better to look for help on the debt free wannabe board?

hells_2

mkln wrote:

I am currently paying £670 mortgage and am able to comfortabley go to £1300 per month.

Hang on a minute...you say you are comfortable in meeting mortgage payments of up to £1300 per month, i.e. £630 MORE than you are paying now.

So why haven't you paid your debts and credit cards with that £630.00 per month?