advance on subprime mortgage

flossieflipflop

Hi,

Not sure if anyone can help but just looking for some advice:

Our car has given up the ghost and we need to replace it. I work 20 miles away in an area with no public transport and we have a 6 month old baby so have to have a car.

We have a crap credit rating (from a few years ago but in a dmp as a result and defaults etc all still on file) so are not going to be able to get a loan to get another car. We have no savings as have been on maternity pay for past 6 months and we had to live off those (I;m main earner) although I'm back to work in September. This gives us a few weeks to find a solution to getting another car.

Basically we have a mortgage with Redstone Mortgages (a sub prime lender) taken out 3 years ago. Our repayments are up to date and our LTV is about 65%. I am considering an advance in order to buy another car. But they want an upfront valuation fee of £250 before they process the application. I'm concerned they may not give it us anyway and we can't afford to throw away £250 at moment (due to crappy maternity pay), and the process would take a while leaving us in a state if they refuse with no time to sort anything else out.

So just wondering if anyone has had any experience of getting an advance from Redstone and how likely they are to approve it? (we would need about £4000)

Thanks if anyone can help, offer advice or think of another solution to getting another car!

jimjames

How bad has the car "given up the ghost"? Is it in any way repairable? That could be a lot cheaper than £4000 for a replacement that may have problems of its own.

I'd be very wary about putting car loan on your mortgage so it may be worth trying other routes first. Have you tried any dealers? They may offer finance which could be poor rates but may work out cheaper when you take into account the valuation fees etc.

aimzrabbit

fossie

redstone are not actually a lender they are a spv , they basically handle accounts such as old beacon mortgages , there is no way you would need to secure on your house for a car loan of 4K when you have plenty of equity in your house is real risk

you should be able to get a poor credit loan for your car , but personally i would not secure it on a house , go and speak to a professional before you through away money to redstone , the quicker you get rid of redstone the better

aimz

plane_boy2000

If you are going to incur fees just to get 4K then surely you would be better off just getting the car on finance?

Also would you being on "crappy" materninty pay not have to be declared in your application anyway, and possibly affect the outcome?