is the realistic

Tuscan

Hi all

The bad bit

a quick run down, about 5 yrs ago we got into difficulty and had to enter into a debt management plan with the CCCS we did this before missing any payments etc but had to do it as was getting deeper and deeper in debt. during this time i picked up 1 CCJ despite every effort to avoid it and also a few defaults before having the plan agreed by all but one party (hence ccj). i will point out before this time i had a very good credit rating, not that it matters now.


we have never missed a single payment on the plan and all creditors are happy as im paying around £670 a month to clear them, it was originally only £350 a month when the plan started but i have increased payments year on year..

Now the good bit

we have a property which is worth around £190,000 and a outstanding mortgage amount of around £75,000 so a large amount of equity, also we have NEVER ever missed a single mortgage payment in 10yrs. we have mobile phone contracts etc that have been running for years going back before the problems started and still running today...

The plan

we are thinking that in about another 2yrs we want to move and buy a cheaper house say 30k less than ours is worth then pay off the debts with some of our equity and the rest as a deposit on the new home. i guess we will be looking at a £160,000 house with a 60k+ deposit..

we want to move to a much more rural area to bring up our baby daughter, and were prices are a lot cheaper so will still be able to get a reasonable house and be debt free, with the debts gone this will also half our monthly outgoings compared to what they are now.

The worry

it all seems very logical and the obvious thing to do, but will we be able to get another mortgage with our now trashed credit rating?, im hoping the market will improve in a few years as things get back to normal, and then maybe the lenders will start to look at cases such as ours...


so guess what im asking is this, are we dreaming or is it possible we would get another mortgage..


thanks for your time

herbiesjp

You will be able to get a mortgage in 2 years time (all things being equal) - assuming your income is enough to support the mortgage,

The LTV is strongly in your favour based on those figures

At the moment there are only a handful of lenders that could help

However hopefully by then, things will have improved, and you may have more choices available.

Tuscan

Thanks for the fast reply, i was thinking that in a few yrs the lenders may be more considerate and we might be ok. quite possible that our deposit will be greater than 60k depending on how much of our debt i can pay off in the next few years plus our mortgage balance will also come down a bit more...

herbiesjp

You are doing all the right things so well done

And then before you know it your credit file will look a lot healthier

Tuscan

was having a look on right move and have found a great looking rural village in the Cambridgeshire fenlands, theres some very nice houses there for around £130,000. that would give us a fantastic LTV of around 50%+ as well as being debt free with a very small mortgage.

Hope we can finally begin to see the light at the end of the tunnel.

i was wondering though, when lenders are looking at your past credit issues CCJ etc do they take into consideration that you will be settling everything in full on completion and have behaved responsibly in paying off the debts.

my concern with my CCJ is that it was for a large unsercured loan of £28,000, i only got the CCJ as Natwest refused point blank to except anything other than the full payment. funny thing was that when i went to the hearing the Judge took a very dim view of there actions as it was clear i was doing everything in my power to sort things out, she refused there requests for charging orders etc and did everything in her power to help me but the CCJ was unavoidable. the worst thing is im paying them £250 a month which is more than i legally have to and almost every penny of it is going on interest only as they still refuse to cut me any slack what so ever, hence why we need to make this move happen...