Remortgage-Bad Credit

SmileyS_2

Hello,

Just wondering if anyone can advise please.

We are with Kensington Mortgage company at the moment and have been to court as we got into arrears,we also have a secured loan which again went to court.Both were over 6mths ago and we have been paying on time ever since.We also have bad credit with loans and have been behind on payments etc.Hubby has a CCJ going back about 3yrs and I have more recently(about 3ths ago) so not great!! Husband works and earns approx £22,000 a year,I don't work as have a disabeled child but get carers allowance and we get WFTC.

Our outstanding mortgage is about £73,000 and we owe about £3,000 on the secured loan.Our home is worth about £150,000 and we have no fees to pay if we change our mortgage.

Do we stand a chance of getting a mortgage elsewere?If so what companies may give us a remortgage.I understand we will pay a higher APR because of our past credit history but at the moment we are playing £798 mortgage,£235 secured loan,£150 CCJ loan which is leaving us with nothing to pay the rest of the debts we owe.Ideally we would like to borrow a little extra to pay the rest of our debts off but thats not essential if the actual mortgage payments go down.

Many Thanks for any help

S

ascu05

from what i know, you should be able to get a remortgage because you have plenty of equity in you house.

My limited knowledge of the market tells me that based on equity SPML, I Group, GMAC/High Street Homeloans or even Money Partners who are part of kensington would help but an advisor would need to make sure you fit their affordability rules - an advisor might also be able to find quite a few other companies who could help.

ossie1_2

In agreement with the above moneysaver, would suggest you speak to a good mortgage adviser who can source the specialist sectors of the lending market for appropriate deals.

Low loan to value is a plus albeit the variety of problems you've experienced with your payments are a negative. However, specialists in the adverse credit areas of the market vary so much and offer a huge variety of deals nowadays that someone should be able to help. Speak to someone as soon as possible as they may also be able to suggest different ways to reduce your outgoings. Ie, extend mortgage term? Interest only for a period of time? Different things can be looked at in the short and long term to help you.

Good luck

Skinty_2

I have just moved my mortgage AWAY from spml(capstone) and personaly woud not recommend them to anyone, they are about as charasmatic as bubonic plague.

arkie

smileys,
you should be able to remortgage with not much problem , you will be limited by the lenders, most of the lenders in this marketplace are ok , as long as you pay them but that the same with most lenders, ive remortgaged loads of clients away from kensington to other lenders inc SPML and they have never had any problems.
use a broker from yell.com

i am mortgage adviser

itsarichmansworld

I'm in the same boat.... We went to a IFA who was very stern and said you shouldnt have got into this mess really kicked me up the bum.

But I needed it

We're going with Birmingham Midshires and Subsidary of the Halifax so you can defo get a re-mortgage as they will take on Bankrupts etc.

Best of luck I know its not the best way to get Debt Free but if the monthly payments go and you have a better income you can throw money at your mortgage. Thats our plan we're Cheaper in the short term re-mortgaging and we plan to pay our mortgage off in 5 years where if I paid that money to debt I wouldnt be debt free until 2015...

Best of luck

itsarichmansworld

Oh and they refund survey fees and legal fee's

AndrewSmith

Hi,

Do not take the following as a lecture or as someone taking moral high-ground and talking down to you. It is not. I am merely trying to offer you some real help that may actually work instead of giving you false hope and patronising you with pie in the sky suggestions that may not apply to you. It is impossible for anyone given the information available to begin to suggest a possible lender or whether you will definately be accepted and, as such, you should not begin approaching lenders yourself until you have identified where the problem lies and what is the extent of the situation you are currently in.

First thing is that you should stop, draw breath, and have a good hard look at your finances and where things are going wrong. There is obviously a problem with either overspending somewhere or not managing to correctly budget as the problems are historic and on-going. Not suggesting for a minute that this is intentional, it is possible that by simply not looking closely enough at your spending it has caused problems over time. What you do need to do though is to be completely honest with yourself and each other.

List your incomes and all your expenses on a monthly basis, breaking it down to even the smallest spending such as the weekly milk bill etc. This can be done by using bank statements, till receipts etc. The more accurate this is the better you can plan to move on.

Also get together all the paperwork to do with any outstanding loans/credit cards/mortgage/secured loan including the court paperwork. This will enable you to accurately see the current state of play.

Get copies of your own credit files. This will then allow any potential broker/adviser to see exactly what your situation is and the extent of the effect of the credit problems. You can get a search on yourself without leaving a 'footprint' on your credit file.

Things in your favour. The value of the property is healthy thus will lessen the 'risk' for any new proposed lender. Also the income from your Husband at £22,000 is good and may be able to sustain the borrowing should you decide to consolidate it all together. More details of your WFTC would be useful though.

The important thing here is that in such cases there is no magic wand or simple solution. Simply consolidating all the debt together may not be the best way forward and all avenues need to be explored. For example, by consolidating the most expensive elements of mortgage and secured loan, you may be able to free up sufficient income monthly to direct towards the repayment of outstanding unsecured debt. Yes it will be tough for possibly a couple of years but then the debt is gone, not added with interest to a 25 year mortgage.

As I said, no one can offer the correct solution based on the information posted, seek professional advice from an experienced whole market fees free broker, you may just be surprised at what might be possible without necessarily landing you with an even bigger mortgage.

Hope this helps

Andy