No mortgage, big debts

chopperpete

Hi, this is my first time on here. My situation is this. I currently own my house outright (hence no mortgage), but I have debts of about 65K. the value of my house is about 300K. How do I go about getting a new mortgage to pay off all my debts and start afresh? Also this means my credit report will also improve. i have tried my bank (Barclays) they didnt want to know. I seem to be in an catch 22 situation, plenty of equity but no one willing to lend me money to get myself back on track.

Many thanks

somethingcorporate

Go and see a broker, they should be able to help you assuming you have the income to cover this new mortgage.

Thrugelmir

Have you considered downsizing your property?

Lenders would be concerned that although remortgaging your property provides the solution it doesn't necessarily provide the cure.

ACG

Im presuming based on the limited info you have either been declined because your income doesnt support the mortgage or you have a bad credit history (or potentially both).

If your income doesnt support the mortgage then you are going to struggle.
If its down to bad credit then there could be lenders depending on how bad it actually is.

We need to know your income and a little more about your credit histroy before we could give a better answer - alternatively as has been suggested, speak to a broker they will be able to give you a straight answer.

ILW

Sell up....

Dave_Ham

As ACG said correctly, need some more information on age, income, employment and how bad the debts have got.

I am a big believer in where there is equity there will be a way, so given the loan to value I would expect there to be a solution..

Good luck

HappyMJ

chopperpete wrote: »

Hi, this is my first time on here. My situation is this. I currently own my house outright (hence no mortgage), but I have debts of about 65K. the value of my house is about 300K. How do I go about getting a new mortgage to pay off all my debts and start afresh? Also this means my credit report will also improve. i have tried my bank (Barclays) they didnt want to know. I seem to be in an catch 22 situation, plenty of equity but no one willing to lend me money to get myself back on track.

Many thanks

It depends on your earnings. You have the equity so a creditor could apply for a CCJ and then a charging order on your house to secure the debt anyway. For a £65,000 remortgage (new mortgage) you would need to earn a third of that and have a very good credit rating.