Re-Mortgage Required but have CCJ's and arrears 6 months ago

General_Hogwart

Hello guys, long time no see!

A family member has a bit of a problem and I thought here may be a good place to get some advice.

So, she has a house worth around £130k.

Currently has a mortgage for £32k about 7 years left paying £400 a month.

Bills and debts have mounted up and an urgent cash sum of around £10k is required ASAP.

The current lender CHelsea will not do a re-mortgage as she has had arrears within the last 12 months.

Her bank Lloyds won't offer a mortgage because she has 3 CCJ's.

The only thing that has been offered so far is a £10k loan from 'Central lending' (part of RBS) which is over 15 years and repayments of £160 a month. Repayment total would be nearly £30k - that option sounds a bit daft to me - surely theres another way?

An idea I had was, take the loan and then re-mortgage either after 12 months of having no arrears (if they let her) and then pay off the loan... or do the same and remortgage after 7 years once the ccj's have cleared (and possibly original mortgage is paid off).

answers on a postcard....

Thrugelmir

Sell the existing property and start with a clean slate by renting for a period.

stebiz

Foggie wrote: »

An idea I had was, take the loan and then re-mortgage either after 12 months of having no arrears (if they let her) and then pay off the loan... or do the same and remortgage after 7 years once the ccj's have cleared (and possibly original mortgage is paid off).

answers on a postcard....

For what its worth, I'd agree with you. Make sure that there are little or no redemption penalties. I can see your point. Seems little point bringing 30k of standard mortgage rate into adverse territory just for 10k.

General_Hogwart

Thanks.

Have considered the selling option but would really like to keep the house for the kids future.

And rent would be dearer than the mortgage and loan payments together. ALso considered buying something smaler outright but again - want to keep the house ideally.

Ideal soluton is a new mortgagebut it does look possible.

May have to get a few more loan quotes.

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little or no redemption penalties - ? what are these ?

I can see your point. Seems little point bringing 30k of standard mortgage rate into adverse territory just for 10k - don't quite get this either?

Thrugelmir

My comment was based on the fact that her credit rating is all but destroyed. Forget about leaving the house to the children. The issue is here and now.

Firstly the current financial issues need sorting out, then learning to live within a budget. This will rebuild credit ratings and enable a foot hold to put onto the property ladde at a later date.

Consolidating debt is often little more than deferring the envitable.