Help Needed in getting a mortgage

fowsal

Please could anyone give me some advice.
I have a bad credit history and am struggling to pay my mortgage.
Because of this i have decided to sell my home and move to somewhere cheaper but because of my credit history, i am now unable to get a mortgage with any of the lenders i have tried!
I have found the ideal property, would be able to put down 50% as a deposit and only need a mortgage for £60,000 which is a lot less than i am paying now, and will also be in the position to pay off ALL my debts.
So far, no lender will help me!! :mad:
Any advice would be gratefully received!

QTPie

Have you tried a mortgage broker? I am generally not a fan, but in exceptional circumstances - like these - they might have more hold of suggesting a possible lender...

QT

westv

I'm surprised your current lender isn't able to see the benefit of what you propose.

ILW

Sell up, pay off your debts and rent until you can clear up your credit file.

crocks

fowsal wrote: »

Please could anyone give me some advice.
I have a bad credit history and am struggling to pay my mortgage.
Because of this i have decided to sell my home and move to somewhere cheaper but because of my credit history, i am now unable to get a mortgage with any of the lenders i have tried!
I have found the ideal property, would be able to put down 50% as a deposit and only need a mortgage for £60,000 which is a lot less than i am paying now, and will also be in the position to pay off ALL my debts.
So far, no lender will help me!! :mad:
Any advice would be gratefully received!

This sounds very much like our situation, however we are managing to pay our mortgage each month so have a 100% fine payment record there, we are just getting a bad credit rating as we are missing payments on other things!

We have decided to sell up on our house and buy a cheaper "dream" one and in theory we can use the equity to clear the majority of our debts while coming out with a smaller mortgage monthly payment and be able to sort out our other payments.. Our Mortgage advisor has done the maths and seen that it is possible, however to quote the original poster, Our current lender is not interested! and I am worried that we will not be able to get a mortgage due to our credit problems.

it always annoys me that lenders "Score" you on your present/history rather than taking into account your "future" incomings/outgoings based on the new payments, as if they looked at your future ability to pay as well as your past ability, they would clearly see in our case,and possibily the original posters, that there is little if no issue at all. Though I am guessing that back in the "old days" when you could speak to a human being to arrange a mortgage rather than a computer, this would have been the case and the money market would not have half the problems it does now.

So I guess I ask too, what are "are" best options as well ;-)

JC

Cannon_Fodder

Sell first. Rent in meantime. Clear debts. Put right any missed payments elsewhere. Let credit history refresh over 3 months or so. Try again.

Even better if you can be patient and wait a year from the credit history being squeeky clean.

kelda_shelton

port over the current mortgage and use equity to make monthly payments until your in a better financial position to get a better mortgage rate and cheaper monthly payment?

maninthestreet

kelda_shelton wrote: »

port over the current mortgage and use equity to make monthly payments until your in a better financial position to get a better mortgage rate and cheaper monthly payment?

Even if the OP's mortgage deal was portable, they would still need to meet their lenders current lending criteria.

crocks

maninthestreet wrote: »

Even if the OP's mortgage deal was portable, they would still need to meet their lenders current lending criteria.

Quite true.. we tried to port and our lender said we had to borrow the exact value of the new property which they wouldnt be prepared to lend us due to our circumstances.

From how they explained it worked, a port is not a direct migration of your product to a new house.(?) You still have to complete the current mortgage on your current property (ie redeem it) and reapply using their (which has now changed) lending criteria for a product on your new property. So Deals which offer "Porting abilities" on that count are not really worth their weight at all.. Bunch of bankers.. grrr.. lol.

essentially they told us to go play in the traffic...

Tuscan

we are in a similar situ although have never missed a mortgage payment, what we have decided is to put our house on the market after Christmas then settle all debts and rent for a few years in a new area that we love (Rural Suffolk) we have worked out that after all debts are gone we will have 50-60k left over that we will stick in the bank ready for us to buy again once our credit file is repaired and defaults etc drop off (3yrs) not worried about renting too much as we can rent a dream property (farm House etc) for similar money that we currently pay in our mortgage and buying is much cheaper than were we are living now so should have a 30-40 percent deposit when the times right to buy again...