Mortgages with Bad Credit

13beech

I've been told by my mortgage advisor that nobody will touch me with a mortgage now I have payment plans in place for credit cards - she has tried at least 3 of the high street lenders who all declined! I have sorted these arrangments myself and am desparately trying to release equity from my house to sort the problem so this seems ridiculous, especially when I will be putting in a 40% deposit.... can anybody offer advice?

Thrugelmir

Sell and downsize.

Releasing equity does not solve the root cause of the problem. (lenders opinion not mine).

Alternatively make a serious attempt to reduce your outgoings. Try the Debt Free Wannabe board for advice and support.

13beech

Thrugelmir
Thanks for the response. The object of the exercise is to sell and down size but were begining to wonder if we would be able to get a smaller mortgage 60% LTV ???

Anyone else been down this road ?

13beech

Has anybody attempted to get a mortgage with payment plans in place? if so, any success?

herbiesjp

Have you got a copy of your credit files? What does it show on there?

Which lenders did she apply to?

What is the property value and mortgage amount?

13beech

Thanks HerbieSJP, she tried initially with Halifax (our current mortgage provider, we have never defaulted or had any late payments), she then tried Abbey who both declined.

Our credit file is showing payment plans which we have set up over the last few months (about 6 to be precise), we've realised the problem and now want to sell the house and downsize.

We didnt realise it would be a problem and thought freeing up cash with a lower mortgage would show a sensible approach and get us back on track, never thinking we wouldnt get a mortgage. We'd be buying for about £100K and would be putting in £35K(ish)....

winchop

13beech I know how you feel. We wanted to donwsize, thought it'd be so straight forward as we've got equity in our property & were looking for a smaller mortgage. We've always paid on time & bank said no due to credit rating! We've got a few pay arrangements in place.

uknovaman

Same here, Been with C&G for 10 years, repayment plans in place for credit cards. Fixed rate finishes in November. I spoke to them last week and they said as long as there were no arrears on the account or payments missed we should be ok. we do have a low loan to value though, about 43% and never missed a payment.
HTH

Thrugelmir

13beech wrote: »

Thanks HerbieSJP, she tried initially with Halifax (our current mortgage provider, we have never defaulted or had any late payments), she then tried Abbey who both declined.

Our credit file is showing payment plans which we have set up over the last few months (about 6 to be precise), we've realised the problem and now want to sell the house and downsize.

We didnt realise it would be a problem and thought freeing up cash with a lower mortgage would show a sensible approach and get us back on track, never thinking we wouldnt get a mortgage. We'd be buying for about £100K and would be putting in £35K(ish)....

Consider selling and then renting for a while. This will enable you to clear your debts, get to grips with your personal finances and start to rebuild your credit rating.