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Remortgaging with Poor Credit History
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wer
Posts: 4 Newbie
I'm desperately seeking a remortgage to release 12k for debit consolidation. (This would pay off credit card debt, money owed to friends / family, and business debts)
We have a £140,000 mortgage on a property valued at about £240,000.
Obviously, that's a small amount of the total overall equity so that is in our favour, but we have a bad credit record. No CCJs or bankruptcy but historic and current late payments to cc, and mortgage arrears of about 2k (2 months) Clearly, not very a very attractive history.
We are both self employed and due to a joint balls-up between ourselves and accountant, a historic VAT debt (originally 20k, now 4k) it sitting on our accounts as a liability, overshadowing our assets, resulting in our company being technically insolvent when our last accounts were prepared - even though we continue to trade profitably and submit VAT and tax returns and payments correctly. That means lenders (thus far) have been reluctant to accept us - and I can understand that. A secure loan from Ocean was approved up until this issue unravelled.
Since that loan was declined, I have found full time employment, but I don't start until May. Our own company will still generate about the same amount of money, but my spouse, rather than both of us will take that salary. So the money I earn is in addition to the existing income but again I imagine that given how I have not yet started, this cannot be taken in to account either.
Although I can understand why we present as a bad risk to lenders, I equally find it incredibly frustrating that we are very seriously looking at selling our home, just to take 12k of equity out of it.
We got to this point because although our company is profitable, it just isn't profitable enough for us to live on and pay all the bills. In the longer term, we will be secure with my new job topping that income up but the pressure from the mortgage arrears and other people we we money to is crushing us and we just can't string people along any further. The money involved is not huge, but the situation is now critical. Can anyone offer some advice on parties that might be able to offer a remortgage (or secured loan) in such circumstances before we decide this weekend to put the house on the market? We don't want to sell but it's the only way I can see to release the equity.
Please note: Although new to the forum, I have seen many posts where people are looking for advice on a way out of their issues, only to be met by comments that are at the very least unhelpful, and at worst, cruel - sometimes even mocking. Nobody wants to find themselves in a position where they are seriously looking to sell their home. Whether by bad fortune, or bad decision making, this is where I am and nothing can change history. If you can offer advice, then I would warmly welcome it and sincerely appreciate it. If you are one of those people who would rather sneer, please move on to another post. Thank you.
We have a £140,000 mortgage on a property valued at about £240,000.
Obviously, that's a small amount of the total overall equity so that is in our favour, but we have a bad credit record. No CCJs or bankruptcy but historic and current late payments to cc, and mortgage arrears of about 2k (2 months) Clearly, not very a very attractive history.
We are both self employed and due to a joint balls-up between ourselves and accountant, a historic VAT debt (originally 20k, now 4k) it sitting on our accounts as a liability, overshadowing our assets, resulting in our company being technically insolvent when our last accounts were prepared - even though we continue to trade profitably and submit VAT and tax returns and payments correctly. That means lenders (thus far) have been reluctant to accept us - and I can understand that. A secure loan from Ocean was approved up until this issue unravelled.
Since that loan was declined, I have found full time employment, but I don't start until May. Our own company will still generate about the same amount of money, but my spouse, rather than both of us will take that salary. So the money I earn is in addition to the existing income but again I imagine that given how I have not yet started, this cannot be taken in to account either.
Although I can understand why we present as a bad risk to lenders, I equally find it incredibly frustrating that we are very seriously looking at selling our home, just to take 12k of equity out of it.
We got to this point because although our company is profitable, it just isn't profitable enough for us to live on and pay all the bills. In the longer term, we will be secure with my new job topping that income up but the pressure from the mortgage arrears and other people we we money to is crushing us and we just can't string people along any further. The money involved is not huge, but the situation is now critical. Can anyone offer some advice on parties that might be able to offer a remortgage (or secured loan) in such circumstances before we decide this weekend to put the house on the market? We don't want to sell but it's the only way I can see to release the equity.
Please note: Although new to the forum, I have seen many posts where people are looking for advice on a way out of their issues, only to be met by comments that are at the very least unhelpful, and at worst, cruel - sometimes even mocking. Nobody wants to find themselves in a position where they are seriously looking to sell their home. Whether by bad fortune, or bad decision making, this is where I am and nothing can change history. If you can offer advice, then I would warmly welcome it and sincerely appreciate it. If you are one of those people who would rather sneer, please move on to another post. Thank you.
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