down sizing house - with a bad credit rating

kellkoo

hi there i'm a bit stuck and was just wondering if anyone could give me some advise if possible..

i currently live in a 3 bedroom house and i'm wanting to down size to a to a 2 bedroom house.

my situation is my house is worth £160k and i owe £71k on my mortgage so i'm well in equity.

my mortgage is with the halifax and i also have £30k in my savings account in the halifax.

the house im wanting to buy is £96K but i've got a bad credit rating as i've had a few arguments with my previous bank barclays and also barclay card.. i have sort of cleared most of what i owe barclays but with defaults on payments etc my credit rating got stuffed.

so when i told the halifax what i wanted to down size etc and keep my mortgage with them , they said basically no chance cause of my credit rating.. because i'm moving to a new property its a new mortgage.

i want to keep my saving of £30k and i hopefully want to bank the difference of the downsize move.

whats the best way to get round this sticky situation?

are there mortgage companies that will consider me with a bad credit rating?

even with the downsize and keeping my mortgage the same i'm still £25k in equity.

thanks reading and thanks in advance for any help.

K.

Thrugelmir

kellkoo wrote: »

whats the best way to get round this sticky situation?

Clear your debts. If you want a mainstream lender to consider you for a mortgage.

ACG

I dont understand the problem.

Sell the house for £160k, that gives you approx £90k less fees. No lender will lend you £6k its too little but you would only be using £6k of your savings.

Alternatively, you need to get a copy of your credit report and maybe take it to a mortgage advisor, you might be able to get a mortgage but i imagine the rate wouldnt be too attractive.

kellkoo

Thrugelmir wrote: »

Clear your debts. If you want a mainstream lender to consider you for a mortgage.

hi there, i'm not really bothered about a mainstream lender and if i have to pay that bit extra on a mortgage that would be fine.

kellkoo

ACG wrote: »

I dont understand the problem.

Sell the house for £160k, that gives you approx £90k less fees. No lender will lend you £6k its too little but you would only be using £6k of your savings.

Alternatively, you need to get a copy of your credit report and maybe take it to a mortgage advisor, you might be able to get a mortgage but i imagine the rate wouldnt be too attractive.

the thing is i have plans for my savings and the downsize extra money..