I would like to sell and buy another house but my credit rating is bad

angelamc_2

I was hoping someone may have some advise please.

I have a mortgage and would like to sell the house and move to a cheaper house.

My credit rating is bad and I have arrears on the mortgage and owe to other creditors. I do have equity though of about £30'000, presuming I sell the house about 10% less than its value.

My house is worth £175, I owe £125 and want to buy a house at £140.

My lender is the Halifax. My questions are will they give me a new mortgage, is there anything I can do to help matters.

I have also been unemployed most of this year and have been getting help with the mortgage payments from the goverment. Im now looking at going self employed though.

If im reducing the mortgage will this help my case.

Thanks very much for any advice

Fire_Fox

I don't think you are going to make much profit out of the current house, as you have to factor in estate agents fees. The bank will look at any debts you have when deciding how much of the equity remaining you could use as a deposit. You are unlikely to get another mortgage with a bad credit rating either, why don't you sell up and rent whilst you clear your debts?

rob7475

Hi,

I'm in a similar situation to you.

We have just sold our house and bought a nicer house that needs 'modernising for less than we sold ours for.

During the process, I rang my lender (Accord Mortgages) explained my poor credit and CCJ and they said they wouldn't port the mortgage to the new house even though I didn't want to increase the mortgage amount. However, after nicely asking if they would review my case on an individual basis, they agreed to have a look over the details and offered me the mortgage.

All I can suggest is speak to your lender, explain your situation and why you want to move and hope you get someone understanding to look at your case

pinkshoes

Why don't you sell, pay off all your debts, rent somewhere, then work towards building up your credit rating and saving a large deposit?

poppysarah

angelamc wrote: »

My credit rating is bad and I have arrears on the mortgage and owe to other creditors.

I have also been unemployed most of this year

Honestly?

You're unemployed but want to upgrade to a more expensive house?

You have debt issues that need solving before you look at moving. If you manage to start a successful s/e business right now you might be in a position to pay off arrears and clear debts and keep afloat.

If you can't you'll go bankrupt and then you'll not be able to be s/e