Selling up home and new life (advice on loan please)

Deano01959

Hi everyone,

New to MSE so kindly bear with me. I will just bullet point my current situation and maybe someone can advise. Be most appreciated.

1. I have been a single parent to my 14 yr old son for 2 years. I'm 38 solid job.

2. I own 75% of my own home (Moat own 25%) this is not part buy/part rent, just a straight 25% first buyers scheme they used to do.

3. The house value is around 150K, my outstanding mortgage is 85K. Upon completion I have calculated 21-25K equity (after paying 25% back).

4. I would like to sell up and rent with my new partner and her child.

5. My credit score is 513 with equafax and good with experian, I needed a 10K bridging loan short term to make this easier so applied for a 0% credit card, i got declined and there online system put it through twice in 4 minutes grrrr. I have complained and they will resolve the additional check but it takes upto 8 weeks.

6. My income vs outgoings doesn't look great on paper as i took out a hp for my partners sons car recently,as he was too young to get credit, my income doesn't show his monthly standing order to pay back nor the money my ex pays towards our son, £200 a month.

Here's my problem, i cannot get the bridging loan or normal loan required to cover my move into rented (deposits, checks, my house sale etc etc). Between us we have enough to move into rented and we can afford to pay mortgage and rent until my home is sold, estate agent reckon 3-4 months based on current sales in my area. I would pay back the full loan plus any fair interest of the house upon the sale. Bridging loan companies are not interested due to part ownership by Moat and the equity is too small. Are there any other options for me please for this type of loan? this gives me the option to start looking now.

my only other option i can see is to put the house on the market, get my equity and move in with partner (small rented flat) or good ole mum till its sold and we find a new home, also storage costs, my lad getting to and from school will create some huge hurdles and it doesn't feel comfortable. I feel pigeon holed, could someone like zopa help maybe? only an idea as last resort

Any advice greatly appreciated?

Kind Regards
Dean

[Deleted User]

Selling seems the only option. Zopa only lend to people with very good credit ratings, so I doubt they will be able to help.

What is your income and credit rating like?

Deano01959

Hi Zx credit rating is OK to good, income good. But doest reflect will on a credit report as some funds are not taking into account, my lads upkeep from his mum, standing orders payed in and the report doesn't reflect my recent increase in salary. No ccjs' or bankriptcy etc..squeaky clean on repayments but looks bad on paper, income vs outgoing. Also halifax declinined a cc twice in 4 mins due to an internet error hasn't helped, equafax said just that had knocked me down from 600 to 513.

I cant apply apply again i know the spiral through reading here.

I need a short term loan and repayment based on sale of house, maybe there isnt such a thing, as a say bridging loan companies not interested due to 25% owned by moat and equity small.

Cheers mate

DCFC79

As zx81 says whats your debt to income ratio like ?

Paul_the_Painter

Not really seeing the problem
Put house on market, continue living in house, wait for an offer you can accept. Accept it. Once contracts have been exchanged go house hunting for your new rental house. You'll know your moving date as that will have been agreed whenn you exchange contracts.

Prior to the day of sale, you will only need referencing fees, plus a small holding deposit.

Day of sale move house.

Just means you can't move into rented NOW.

bargainbetty

Or, if you can afford to rent and pay the mortgage, start saving up. £10k is a lot of money for a deposit and a relocation, it won't come to that much unless you plan to entirely refurnish it too.

Why are you borrowing money to pay for the sale of your house too - doesn't that come out once it is sold?

Honestly, Paul is right. Wait until the sale is going through then find a place. 4 months might be an average. In my area, flats on my road go within days of being in the market (commuter belt) but houses can take up a year or more.

Good luck