re-mortgaging with defaults

edinburghboy

dear all,

having seen my house sale fall through twice in as many months i think i need to look at other options as stress is really affecting my wife

we have 80k in defaulted debts - i lost highly paid job and took me 18 months to find another

tried to sell house to pay off debts - cant sell house in current market

we own 100% outright - value 350k.

would anyone lend us money with such poor recent credit record given their risk is actually much lower than most mortgages given our equity position and i am back in full time quite well paid work (almost 12 months now)

thought it best to check with you folks on here in case there are any good firms to approach.

thanks in advance for any helpful advice

Tixy

You might be able to find a mortgage with defaults - but not from the main high street lenders. You'd need to think about approaching an independant mortgage broker.
How old are your defaults?

Most people would advise against changing unsecured debts to secured debt though. If you were to lose your job/income again then you would be at a risk of losing your house. Whereas with unsecured debts you are only risking your credit ratings.

What is the situation with your current debts? are you in a DMP? are you now able to meet minimum payments? have you had any advice from one of the debt charities?

edinburghboy

in DMP Tixy yes - struggling though to keep it up

i think the honest answer is i am sick of worrying about making ends meet. we thought we'd sell the house fairly quickly and 6 months later and 50k off the asking price we are still in the same boat

i take your point re secured debt but i am desperate to get back to living again

my job is fairly secure and its something i am good at so long term i feel fairly comfortable in taking on debt on the house

the defaults are all in last yr and there are quite a few of them - 8 or so with total value of 80k

i know they will see me as bad risk and i accept that but my point is their lending is well covered and they'll cream me for interest

Tixy

How much are you paying into your DMP currently?
Are you struggling because that amount is really too high? are there costs that you didn't include in your original budgets?
(Who are you using for your DMP? a free service or a company charging you money)?

How many of your creditors have frozen interest?

If you were able to get a mortgage have you done some rough calcs as to how much you would end up paying a month for that? how does that compare to the figure you are paying into your DMP?

edinburghboy

paying £679 pcm into dmp through cccp

most of the creditors have frozen the interest which is great

i can just about afford the dmp repayment but a mortgage at the full amount - 80k at 6% would be £515

that said, it may be i can do f&f's with the creditors at a significantly lower level which would allow me to borrow a lot less and so lower repayments etc

edinburghboy

bump up for the weekend crew

anyone know if this is a viable option or not?

cheers for any info

theoretica

I wouldn't want to- for the sake of £160 a month you would be putting your home at risk, and probably tying yourself into early repayment fees. Has your situation changed or costs risen so you could ask to lower the DMP payment?

With a £350k house do you have space to take a lodger in?

edinburghboy

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