New mortgage - late payments

Tallulah_Chicken

Hi

I was hoping one (or more!) of the mortgage brokers could give me their opinions on my current situation.

We need to move house quickly (neighbours from hell) and want to make an offer on a house we saw this weekend. Our house is valued at £200k and we hope to get an offer accepted at the new house at around the £140 - 150k mark. Our mortgage currently stands at £80k with Santander (originally A&L).

I work full time and earn £28, 766 pa. My partner is retired and has an income of £22,000 but due to his age (66) the mortgage is based on my salary only. I have around £17000 in credit card debt at the mo which I have reduced from £25000 over the last 6 months.

Unfortunately I was ill late last year and missed some payments on my cards (I have never done so before). These are all now fully up to date and have been for the last 6 months. They were never more than 1 month late but apparently I have missed 13 payments over the last 12 months. I am worried about how this will affect my ability to get a new mortgage. The plan is to keep the mortgage at its current level and pay off the debts using the equity. Can anyone advise whether this has a reasonable chance of success, or should I be looking at specialist lenders?

Many thanks for any help, I'm desperate at the thought we might be trapped here due to an unfortunate 6 months

robatwork

You don't mention your mortgage history - I presume you've paid on time every time for the last xx years? It would be useful (for the brokers in here) to know what xx actually is.

You've got to get that £17k debt down - it's like another mortgage only running at 20% interest...

Nasty neighbours really make life miserable so I hope you get to move or another resolution quickly.

Tallulah_Chicken

thanks robatwork. It is miserable -I'm at the point where I would give the house away if it meant we could walk away!

The mortgage was taken out Oct 2009 and has always been paid by direct debit on time. No issues with it at all. I should mention that we have a £4000 early redemption penalty (no intention of moving at time of mortgage!) DH also has an excellent credit history.

Dave_Ham

Hi there - this is very sad and I am sure incredibly stressful.

Good news is subject to other unknown variables, there will be a solution.

You really need to get both your Experian and Equifax credit reports and see exactly what has been reported.

The debt will be a hurdle, although I imagine the plan is to pay this off with the equity from sale?

Your first step will need to be talking to Santander, as if you can port this mortgage you will not pay the Early Redemption Charges. I fear you will fall outside their current lending policy, although that is why I said about checking Experian and Equifax as may not have been reported as such..

Aside from this, there will be a sensible solution just find a broker or do some serious homework before you apply and get credit searched anywhere..

Not sure if DH is still on the mortgage currently, depending upon what term you wanted/needed, this could additionally be an issue for some lenders so check criteria first..

Good luck

Tallulah_Chicken

Thanks Dave. The information about the late payments has come from my Experian report, so I am fairly confident they are correct. We would pay off the debts with the equity, DH was named on the mortgage but his salary wasn’t figured in somehow (he was working then) due to his age and the term we wanted. Ideally we would want another £80k over a 25 year term. Although DH is retired, I’m only 34 so I hoped this wouldn’t matter too much. Does this still sound feasible to arrange through a good broker like yourself?

Dave_Ham

It will absolutely be feasible yes.

Obviously from now and until you apply, do what you can to try and ensure the mortgage and the unsecured debt get paid on time but given you downsizing you should be ok..

Its a bit chicken and egg, although would obtain an AIP first and then (assuming you have not done already) market your property maybe without reference to the neighbour - sure you are not stupid but could not help putting it in...

All the best