In a mess

staffy

I own a flat which is worth around 100k give or take.

My mortgage is around 93k. SO on a good day I would have some equity on a bad day I am in negative equity.

thats not a major problem as I dont intend to sell just yet however my long term plans would be to sell and buy a house.

I am currently on a variable rate mortgage which I guess suits at the moment and its unlikely I would be able to move mortgages anyway.

Now here come thes major problem. I am dealing with a debt finance company as I owe over 35k.

What are my chances in the future in remortgaging or even being able to buy a more expensive house.

What do I need to do to make it achievable?

Sorry i know there is a lot there but my wife really want a house for our kids to grow up in.

Thanks

kingstreet

Remortgaging won't be a possibility until you have reasonable equity in your property. Your current lender may offer you a new customer retention product if you don't want to stay on its variable rate.

A new property? The best summary I can give is when you have a 10% deposit, money for fees and your credit history no longer contains any adverse entries such as court judgments or defaults.

To bring moving a little closer, what about selling the flat and renting a house, or letting the flat and renting a house?

Thrugelmir

staffy wrote: »

Now here come thes major problem. I am dealing with a debt finance company as I owe over 35k.

If this is the case how can you afford increased mortgage repayments?

staffy

Thrugelmir wrote: »

If this is the case how can you afford increased mortgage repayments?

Well I rent out the flat as we have 3 kids and I rent a house.

So i pay 625 rent and also service charge for flat.

Thrugelmir

staffy wrote: »

Well I rent out the flat as we have 3 kids and I rent a house.

So i pay 625 rent and also service charge for flat.

That puts matters in a different light.

Personally I would sell the flat as soon as you able. Using any released equity to reduce your unsecured debt.

You will have to tackle your debts head on to move forward.