Sub prime mortgage still or not???

flirtythirty76

Hi All,
Just after a bit advice please... Can I try high street mortgage lenders or am I still sub prime?
I currently repay my mortgage to Redstone, was arranged with Beacon in 2009...owe 120k & house value 160k on variable repayment mortagage(controlled by the weather it seems) & pay £776 pm.
I am wanting to know what options are available to me now in terms of remortgaging,(I know I cant with Beacon as gone & Redstone dont lend) moving house or debt consolidation???
Originally I went with Beacon as had defaults but these were all repaid & went off my credit file in 2010 & I wish the application/house to remain in soley my name.
My issue is that I owe about 30k in unsecured loans & cc which are all up to date with no late or missed payments ever...I earn £38k basic, with £7k company car, get £450 pm off my husbands other property in rental income & £134.80 pm child benefit...bring home approx £3100pm.
What are my best options available to me?
Would I need to look sub prime again due to my debt income ratio?
Ideally would love to move house but not sure if this is an option?
Any constructive advice is greatly appreciated.
Thank you in advance.

opinions4u

See a reputable local broker. It might be difficult with the unsecured debt, but your equity is a good starting point.

maninthestreet

So what income does your husband have, in addition to the rental income from his other property?

ACG

Is the rental income declared income? If not, im not sure this can be used as income - unless its court or CSA ordered child maintenance.

As for the debts, they alone wouldnt cause you to be looking at a sub prime lender.

I dont think with those debts there is enough equity in the house to enable you to remortgage.

I think you are best speaking to an advisor who can do a full factfind with you, get all the information and see what is available to you.

EDIT: sorry after reading Daves post i noticed i had read your post wrong re: ex husbands rental income. I agree wih Dave though - your partners income isnt yours and unless you have declared it as income for a few years it wouldnt be taken into account anyway.

Dave_Ham

Firstly, you want to do this as a sole application then you cannot include your OH rental income as he is not party to the application.

Get close to your Experian and Equifax reports and as advised see a decent broker.

I do not think you need to be sub prime based upon what you have said, although you will need to approach the right lender in the right way.

I would think there is enough to go at here, although you have to see someone qualified and then they can pull this together for you.

Good luck

flirtythirty76

Thanks for the advice.
The rental income from our other property isnt declared but has been paid direct in to my bank account for the past 3 years on the same date so would that be seen as my income or not???
Will my debt not work against me in terms of a remortage as isnt a great amount of equity in the house...40k?
Dave...where do i find a decent broker or do I try my own bank...Natwest?
The broker I used previously is no longer there!!!
Interms of a remortage are some lenders more "flexible" than others & who should be avoided?
Also on my income what figures would i be allowed to lend approx?
Many thanks once again for the advice

Dave_Ham

Typically Natwest are only good to existing clients with a bigger deposit/equity, although worth asking them but do not let them credit search you. This is important

Banks lending criteria differs wildly and as such a broker in these circumstances would probably work for you, any costs they may charge should easily be outweighed on the amount saved.

It is unlikely that you will be able to use this income, but still depending upon some more detail that you should provide a decent broker, I would still expect a decent solution.

With some lenders you may be able to refinance some of the unsecured to make the debt more affordable, although will increase the overall borrowing cost and type.

Sub prime lenders are not more flexible with income multiples (in fact the opposite) any more, although they are more flexible with credit scores and previous naughties on the credit file..

Good luck

flirtythirty76

Thanks Dave...
Where do I find a "decent" broker as last one used has gone!
Ive asked friends & they have mostly gone directly to their bank so unsure where to find one as google will no doubt bring up all sorts!
Refinancing the unsecured debt sounds most appealing through remortgaging

GMS

Going to be tight this one. You would need to pass affordability which may well involve consolidating as many unsecured debts as you can into the mortgage.

Problem will be the Loan to Value. Your mortgage is at 75% so adding to it may mean lenders unwilling to consolidate debts.

You also have a dependant child so this will impact on affordability.

Could your husband possibly raise some finance to clear the unsecured debts? Might make it easier to arrange a remortgage for you.

Definitely one for a broker and likely to not be on headline rates

Wh05apk

What rate are you currently paying as a lot of the old "adverse" lenders now actually have very attractive svr's.

Given that you are already at 75% you may find the new remortgage lenders rate could be higher, so could be better just trying to consolidate your debts over a longer term?

Tracewhy

flirtythirty76 wrote: »

Thanks for the advice.
The rental income from our other property isnt declared but has been paid direct in to my bank account for the past 3 years on the same date so would that be seen as my income or not???
Will my debt not work against me in terms of a remortage as isnt a great amount of equity in the house...40k?
Dave...where do i find a decent broker or do I try my own bank...Natwest?
The broker I used previously is no longer there!!!
Interms of a remortage are some lenders more "flexible" than others & who should be avoided?
Also on my income what figures would i be allowed to lend approx?
Many thanks once again for the advice

Try Dave Always trust your instinct. Something I think I should follow myself more often :rotfl: