Subprime

Conrad

Wh05apk wrote: »

Basically in todays climate, bankruptcy will effectively prevent them getting a "decent" mortgage for a long long time - if ever, unless they can build up a large deposit.

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A lot of folk in long term credit difficulty never manage to escape it, and rob Pete to pay Paul in an ongoing revolving credit cycle.

IF this might applies to the OP, Bankcruptcy is a MUCH btter option as long as the house and it's equity can be safegurded under the terms of the Bankcrupty.

Unlike debt managment or IVA's or just struggling on, this option is a once and for all, and the applicant with reduced credit costs can then set about meaningfuly rebuilding thier credit from day 1.

This means a new mortgage IS MUCH MORE feasible after a few years (Ipswich did one for a client 3 years after total bankcrupty for example), whereas an endless cycle of missed payments and over indebtedness means they never fix thier problems and can never access a competetive mortgage.


IVA's and long term DMP's are a disaster for many that instead could have had a once and for all resetting.

PS my own Brother did this and was able to reatin all his belongings and property. Best thing he ever did. From that day on he started saving, something he'd never done before. He was able to get a new mortgage and move home 3 years later. Had he kept his £60k debts, he would likely never escaped the downward spiral, or at the very least have taken 10 years to even repay the existing debts.

Wh05apk

Agree about the IVA's and DMP's these just seem to be get rich schemes for the unscrupulous! But the indication here is that they have good/very good income, with no other debt apart from the mortgage, and £30k equity in the property, so cannot see how they could go bankrupt anyway?

If they can keep "clean" overpay any other debt, and try to overpay the mortgage, then I see no reason they could not remortgage away at some point, albeit, they may have to wait 6 years for their report to clear.

magnic

Hi thanks for replies.

We actually have very little debt other than the mortgage. We did overextend ourselves and had a lot of debt but have managed to clear most of it off. We will be debt free in November.

However, our credit files have suffered, as stated above and I don't think anyone would touch us at the moment regarding getting away from subprime.

That is why our plan is to spend six years doing up property/overpaying the mortgage and then remortgage away from subprime.