Porting a mortgage - advice please

BertrumB

Hi all

1st post so hope you can help.

I have decided to take control of my finances... im struggling to get by paying bill on time, they get paid in end but its the start of a spiral so im wanting to get out of it before Im forced.

I have a mortgage with northern rock, now NRAM. House valued last week at £130,000 I owe £87,000 mortgage, then £14,500 in various lending - car loan, bank loan, cards.

I want to down size and pay off debts and start afresh with no credit, but a smaller house.

Ive seen a house at £110,000 which would enable me to do this.

Problem... lol
Over recent years i have dropped my income after having a family so dont earn enough to get this size mortgage, i am also self employed but only for 6 months or so so I know this will prevent any mortgage.

I have applied for loads of jobs, with pay around £17000 - £20000 per year and I am pretty confidant I will get a job soon.

So... IF i get a job, what do you think my options are? NRAM allow no further lending so I cant free any equity with them. Is porting an option? Dont know much about it... would they require proof of income to do this??

Many thanks, hope someone can help

Thrugelmir

I would suggest selling up and renting. Until such time as you established yourself in a permanent job.

This will also allow time for your credit status to improve. Something which clearing your debts and paying bills on time will do.

BertrumB

I did a credit check yesterday, may credit score was 'good', score 600 (or was it 900 lol cant remember) glad i did it, thought it would be horrendous.

I know i have to address getting employment and know that being self employed wont get me a new mortgage.

Does anyone know if NRAM will require proof of income to port a mortgage (I will be borrowing less han i am now, and will be totally debt free)

Thanks

beecher2

As far as I know, all lenders re-assess income and credit when a request for porting is made. Staying where you are or selling up and renting would seem to be your only options. Even then it might take you a while to save up as you won't get a £90k mortgage on an income of 20k