morgage arrears and looking to release equity

alexmcewan

I have a house worth approx 150k and a morgage of 40k second charge of 20k due to elderly relatives in care homes etc we have had morgage arrears, relatives now all deceased we are trying to get back on our feet again and either get a new morgage to release capital etc etc and we have heard too about morgages for life we are both 55 and will have great pension schemes come the day and a bog lump sum.any advice please we are desperate?

ACG

How many month worth of arrears?
Im presuming your still in arrears?

This isnt something i would be able to help with but i think these are bits of info others may well need.

The_J

Until the arrears are cleared you are going to struggle to find someone to give you a mortgage.

holly_hobby

Success will depend if the arrears are historical (and repaid) or are current and on going

Lenders will also consider if caused by poor finanical management (which will obviously reflect poorly on the applicatino) or by unforeseen events that couldn't have been planned for (ie redundancy etc) - and which are not anticipated to appear again.

3mths+ of arrears will also complicate matters ....

Cleared arrears and a low LTV will positively support your app, and you need an adverse credit broker to give you an idea on whether this is a current go'er with any remaining niche/adverse lenders.

Lifetime mges you mention (presume you mean those with no monthly repayments for life, redeemed on death or entry into long term care), are not so bogged down by adverse credit, due to there being no monthly repayments, and interest rolled up on to the os debt.

The amt of equity to be released will depend upon the LTV, the younger you are the lower the permitted LTV due to (hopefully) the length of time until anticipated redemtion. (there are quite a few threads on lifetime mges of this nature - where they are discussed in detail - have a hunt through).

If you talking about a mainstream mge with unrestricted age at redemption, then there are no current providers, and your adverse credit history would affect the app.

Hope this helps

Holly