Renewal & moving home advice with Northern Rock advice needed

ScottishGal_3

Hi guys,

Apologies in advance as i'm really not clued up on this at all and hoping there's someone here that can shed a little light.

Myself and my husband bought our home 6 years ago for £61,500 and took out a together mortgage, borrowing extra on top. We are in serious debt but are sorting that out in the form of a DAS (debt arrangement scheme DMP) It has been approved but basically all our debts have defaulted and credit file is wrecked.

Firstly our current mortgage deal is due to end in May 2011, does anyone know if NR will just renew the mortgage or are they refusing to do so at the moment?

Secondly we are desperate to sell the house and move to a different area. Can anyone give me a rundown on exactly what happens if/when we sell our house and purchase a new one. Our current mortgage balance is around £70,000 and could hopefully sell for around £85,000 with a new place being around approx £95,000.

I'm really quite clueless about this and thought i'd ask here first before going out to the big bad world to ask the question.

Hope it makes sense and thanks in advance to anyone that responds.

_Andy_

With the adverse credit you are unlikely to obtain a mortgage on the new property.

opinions4u

1) You will go on to your lender's SVR in 2011 (currently around 4.99% from memory - others feel free to correct me if needed).

2) If your credit file is a mess you won't be able to get a mortgage on the new property.

Normally you'd sell for £85k, that would repay £70k and give you a £15k deposit (minus selling costs) to take forwards to the new house.

At this point in time I can't see how you will be able to buy a new house though.

ScottishGal_3

I thought so but just wanted clarification.

Thanks guys..x

getmore4less

Sell and rent paying off debt with any surpluss then start again or stay put.