Borrowing against property/remortgage

jkelly81

I am currently looking to raise around 25k. I tried for additional borrowing with my mortgage provider. Value of property is circa 180-200k, and balance is 100k (purchase price was 135k)...so I had the equity but I have a bad credit record thanks to my silent dispute and refusal to pay HBOS (who also own the mortgage company) so that has screwed that. I want to get my money as far away from HBOS as possible so am wondering what I can do now.

Are there other companies who will just accept the house as the risk? My repayement just now is 550 per month which is very comfortable, it would be nice if this only hadto increase by some 2-300, this is why I would prefer additional borrowing to a homeowner loan. Given the bad credit, is there any other options I can take? What about a remortgage? I don't know what this is...is there anything I can do that can free up 25k somehow? I really dont want to have to try and sell the house beause I think it will be a recipe for disaster, we will be hard pressed to find anything even remotely the same price (avg prop price is well over 200k for similar house) and it will cost a lot of money which I just dont have just now due to a lot of bad judgement/investments in past (have been playing catch up for a couple of years hence needing the money to start fresh and refurb the home so it is at least sellable).

beecher2

What do you mean by bad credit?

If your present lender won't give you additional finance, then you may have problems remortgaging elsewhere. They will all check your credit files.

Check if you have an Early Repayment Charge to pay, and take your credit files to a mortgage adviser to see if you have options.

Alternatively save what you can - you say you're meeting your mortgage payments comfortably so there must be room to save up money. £500/month will quickly pile up, and other forums should be able to help you get your costs down for refurbishment.

handytips

To little info to see if there is anything out there for you.
What was your bad credit and when ?
can you proove your income ?
Should your credit problems not be that bad then there are options for you and the near prime lenders rates are quite good at the moment.

jkelly81

Well theres £12 down the drain...credit rating is 196....any market for that?

beecher2

You shouldn't have paid £12
http://www.moneysavingexpert.com/loans/credit-rating-credit-score#files
The number is meaningless, though I presume it means you have serious credit problems. Are there defaults/late payments?

BoGoF

The lesson to be learned here is you mess with one financial institution you mess with them all and 'principles' get you nowhere.

jkelly81

beecher2 wrote: »

You shouldn't have paid £12
http://www.moneysavingexpert.com/loans/credit-rating-credit-score#files
The number is meaningless, though I presume it means you have serious credit problems. Are there defaults/late payments?

Well it started off as free but ended up costing money...nothing in this world is free/cheap. Yes there are late payments and 2 defaults. There is a sort of pattern to the late payments (I like the grid reference you get to see on your repayments at equifax) which I know the exact answer for and have tried to explain this till I am blue in the face but nobody listens...

Yes principles get you nowhere...but I have tried to reason with my creditors (or rather, my bank) all the way and wanted to do what would suit them best (borrow more to help me pay them off avoiding the late payements and have the money to blitz through the rough times and be able to continue paying everyone off, while they make more out of the eventual repayment and interest).