Re-mortgage with bad credit history. Advice please.

van22663 · 25 September 2010 at 1:49PM

Please can anyone give me any advice. I currently have a mortgage with Kensington. No problems with that and payments not too bad, interest about 4.6% at present. However, it is a variable mortgage and ideally I would like to go for a capped or fixed mortgage. Kensington will not let you remortgage on the same property so they are out.
I am classed as self employed and at the moment I only have 18 months books, so I guess I will need to do a self cert mortgage. Unfortunately, I also have debts on credit cards & loans which amount to 35k. With all of these companies, I have agreements in place to pay a fixed amount & the interest is frozen. Some of these are also with debt companies such as Apex. Because of this my credit history is bad although I have no ccj's and no arrears on my mortgage in the last 2 years.
Has anyone got any ideas on whether it is even worth me bothering to apply ? I am a single parent so just my income. I do not get working tax credit but I do get child tax credit.
Any thoughts anyone ? Thanks in advance.

beecher2 · 25 September 2010 at 2:08PM

There are no self cert mortgages - you'd need to have accounts for longer. You could go and see an adviser to find out how long you will need accounts for, and whether you have any options - you don't give any details of LTV or salary multiples.

van22663 · 25 September 2010 at 2:16PM

Thanks for reply, I did not know self cert were not out there anymore. My house is worth about 150k and my current mortgage is 118k. I guess it is a bit difficult to forecast earnings but I earned 24k last year and I am guessing next year will be the same or higher. That figure is before tax and then the child tax credits are additional to that. Many thanks

Thrugelmir · 25 September 2010 at 8:22PM

If you are on a DMP then you will struggle to remortgage.

van22663 · 27 September 2010 at 6:12PM

Yes I guessed I would. It is not an official DMP , I have arranged myself with each company but still a payment plan of sorts. Maybe need to stick with mortgage ive got till i can clear some debts. Thanks for reply.

TrickyDicky · 28 September 2010 at 9:00AM

with a 118k mortgage and 35k you effectivly have 0% equity in your house. Lenders need at least 10%, and that is for people with perfect credit records.