advise please !

STU

I've been an avid reader on this site but never posted.

I wonder if someone could advise. Approximately 4 years ago I got into some debt issues and went to a loan company to resolve matters. My intent was to borrow the money then 12 months after re mortgage and add the loan onto the balance. Now events stop me doing so

The 40k loans are costing me £700.00 a month. As much as I'm upto date it's killing me to pay them. The thought of 5 more yrs like this doesn't appeal.
I have over 50% equity on a £300+k property but am self employed with a poor credit history (can't see why but...) My mortgage company isn't currently lending and due to my self employment am unable to obtain a mortgage elsewhere.
I need to bring my outgoings down but can't seem to come up with a solution, hence the HELP please. !!!!!!

dollydiva

As I guess anyone here will tell you, you need to go to CAB and see a debt advisor to see if the loan company will reduce payments for you. Sounds like you need something long term as there seems little prospect of your bank changing it's policy any time soon

STU

I agree. If only I could find a lender prepared to listen I could prove affordability for a £40k increase on the mortgage!

bilbo51

Maybe you should sell the house, clear your loans, invest the residual £110K and rent for a while to prove to yourself that you can afford the higher mortgage payments?

CLAPTON

what do you creit files actually say?

self employed can get mortgages subject to affordability and back years records... what is your certified income and how many years can you produce proof of income

herbiesjp

You need to get an up to date copy of your credit file and speak to a good broker.

The dates of the credit problems and the amounts would be useful in seeing whether or not you would meet the criteria of some lenders.

50% LTV on a £300k property is a good starting point.

How many years accounts/tax returns do you have? Do you have 3 years?

What is the NET profit in each year?

STU

My mortgage is through an irish bank. This bank doesn't place the payment history on any credit file. That's not a major problem when you start to talk to a potential lender, their something on my history that has an effect but no one can see it?? I've printed my history and all shows fine, no ccj's, defaults nothing! I've has my business and private bank both look at it and still no one can see the problem yet my credit score is poor?? I'm upto date on all payments and have never missed a mortgage payment in 14 years yet still have this problem.
As far as affordability, I can show my income, payment history and by the fact that I'm reducing my outgoings clearly can prove I can afford it! Added by the fact that I have in excess of £100k equity, I would have thought I would be the ideal person to lend to!!
I have thought about selling, downgrading or even going into rental for a couple of years but that feels like giving up. I've also got 4 children that have spent most of their lives in this house and hate the idea of pulling them away from it.

Barneysmom

bilbo51 wrote: »

Maybe you should sell the house, clear your loans, invest the residual £110K and rent for a while to prove to yourself that you can afford the higher mortgage payments?

I think that is a very wise idea, clear the decks and start again.

opinions4u

STU wrote: »

My mortgage is through an irish bank. This bank doesn't place the payment history on any credit file. That's not a major problem when you start to talk to a potential lender, their something on my history that has an effect but no one can see it?? I've printed my history and all shows fine, no ccj's, defaults nothing! I've has my business and private bank both look at it and still no one can see the problem yet my credit score is poor?? I'm upto date on all payments and have never missed a mortgage payment in 14 years yet still have this problem.
As far as affordability, I can show my income, payment history and by the fact that I'm reducing my outgoings clearly can prove I can afford it! Added by the fact that I have in excess of £100k equity, I would have thought I would be the ideal person to lend to!!
I have thought about selling, downgrading or even going into rental for a couple of years but that feels like giving up. I've also got 4 children that have spent most of their lives in this house and hate the idea of pulling them away from it.

Ok, you've typed a lot there. Read the post above yours and answer the questions asked:

How many years accounts/tax returns do you have? Do you have 3 years?

What is the NET profit in each year?

The answers will let the "experts" tell you whether a lender thinks you can afford it.

STU

Sorry your post came through whilst I was writing my last post. I've more than 3 years books and will obtain a new credit history as soon as I'm home. My last books (current year) are not great due to a return but the company in general is strong and has been trading well for years.

opinions4u

STU wrote: »

Sorry your post came through whilst I was writing my last post. I've more than 3 years books and will obtain a new credit history as soon as I'm home. My last books (current year) are not great due to a return but the company in general is strong and has been trading well for years.

I have had hundreds of conversations with potential mortgage borrowers over the years.

When they answer vaguely to specific questions, it makes me think that they are trying to avoid answering the question honestly because they think the truth will harm their chances of getting the loan they want.

They are often right.