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Coownership Re-mortgage with bad credit

Hi

I am in serious need of some advice. I bought my house in Feb 2008 for 195,000 as part of the shared ownership scheme. I got a 100% mortgage on my share of 40% of the property (£78000). The house is no longer worth this amount. We'll now be coming to the end of our fixed rate and the rate will go up to something like 7.5%. Although we do not necessarily need to remortgage, I'm afraid that we will not be able to afford the payments when they go up.

We also started a DMP with payplan about 6 months ago which means my credit score has dropped from 900 to 250. I realise that that alone will prevent us from getting another mortgage but what I want to find out is what my next step should be. I think I have another 6 months or so before the deal ends and I'm hoping my credit rating will have improved by then.

Should I get the property revalued now by coownership? I'm a bit clueless when it comes to mortgages and deposits. When the property is valued is the deposit the % of the value of the property or the mortgage that we need? (as we only own 40%)

Any advice would be appreciated. I know I'm in a ridiculous situation with my debt but that's why we started the dmp to make a conscious effort to get rid of it once and for all.
Total Debt Oct 2008:£10061.40
Nov 2008:9769.45
Sept 09: 7868.35
Sept 10: £3201:D
:j DFD Dec 2011:j

Comments

  • aodhansmum wrote: »
    I think I have another 6 months or so before the deal ends and I'm hoping my credit rating will have improved by then.

    Should I get the property revalued now by coownership?
    No, wait till your deal is almost at an end. House prices are on the rise now, so you will probably be out of negative equity by then. You might even have a bit of extra equity to consolidate all your existing debts and take on a bit more. Well done on buying shared ownership with a 100% mortgage by the way - great way to get on the ladder, particularly for someone in your financial position. :j
    I'm a bit clueless when it comes to mortgages and deposits.
    Never mind, that sort of thing isn't really important anyway (unless you happen to have taken on a mortgage, in which case you would obviously have done some research beforehand)
    I know I'm in a ridiculous situation with my debt but that's why we started the dmp
    Don't worry, almost everyone is in debt these days, its just not possible to live nowadays on just what you take in each month. At least you are trying to get it sorted. Best of luck :)
    poppy10
  • If you are worried about keeping up with your mortgage repayments help is available. You must get advice as soon as possible. Talk to your lender - they have agreed that repossession will always be a last resort and should discuss alternative payment arrangements with you. Once you have spoken to your lender, you may want to contact an independent advice agency for help. You may also wish to consider the mortgage assistance schemes available.


    http://mortgagehelp.direct.gov.uk/index.html
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