Remortgaging with adverse credit

deestar

Two years ago, having followed advice form this site , I contacted the CCCS as my personal debt had escalated to £26k. This has since come down to £5.1k and despite feeling ashamed at the start, feel proud that I have cleared so much so soon.

Following a recent family bereavement, we are moving to a new house. I have contacted the buidling society who have told me it is highly unlikely that they will move my (portable) mortgage to the new property, despite the loan to value being more favourable and the promise that my residual debts will be cleared on or before completion. All through my time in debt, I have never missed a payment through the CCCS or with the building society. Their financial adviser told me the "shutters automatically come down" for people like me when they present to their underwriters.

I am really upset about this as it is a main stream lender (Newcastle BS) and I have been with them for 14 years without problem. The way I see it, their risk is less and yet they suggest I talk to someone about getting a new mortgage for adverse credit customers.

I don't think any of this makes sense...any suggestions would be appreciated.
Thank you

Dave_Ham

I appreciate the frustration, but forget it as Newcastle will not change their policy no matter how much you reason with them that it is common sense to reduce their liability and risk.

So, you need to focus on whether you still want to move and whether there is another lender that will take you on.

To give you an idea of if this is a solution, feel free to share your proposed mortgage value, property price and exactly when and how much the defaults were listed on.

If you are determined to move, it will be worthwhile obtaining your Experian, Equifax and Call Credit credit file reports.

All the best

deestar

Thank you for your advice. Mortgage is £194k and the property has been valued at £305k. Joint salary is £81k - both employed in a professional sector, one for 2 1/2 years and one for 14 years with our current employer.

10 debtors originally (down to 5 now). The only companies that registered a default were the 2 credit cards - RBS Visa was around £11k and Capital One around £2k

koexelek

deestar wrote: »

Their financial adviser told me the "shutters automatically come down" for people like me when they present to their underwriters.

Unfortunately, that will be the case with most lenders these days. They are very unforgiving to anyone who has ever had any credit problems, even though they are making serious efforts to rectify the situation.
Newcastle are using the fact that you want to move as an opportunity to get rid of you
To be fair though, virtually every other lender would do the same.

Dave_Ham

What dates were the defaults registered?

Given the equity there will be a solution, what purchase price are you looking at if you do move?

A decent broker will have solutions here, although you will need to be armed with your credit reports...

All the best

deestar

That's good to know. On my experian report they show as having been registered in Sept and Oct 09. The LTV is the new property - currently £194k against £225k.

Thank you

Dave_Ham

Are these settled, or the ones outstanding?

deestar

No, these are still outstanding. £11k is now £3.8k and £2k is down to £500.

Dave_Ham

Still achievable, although will need to be an experienced/specialist broker.

Its a shame mind you as sure the Newcastle BS rate is attractive given your length of relationship..

deestar

Yes, wondered if they were keen to use the opportunity to oust me from my very favourable tracker rate.

Thank you for your help and if there is a thread to a reputable broker, please let me know.

kingstreet

deestar wrote: »

That's good to know. On my experian report they show as having been registered in Sept and Oct 09. The LTV is the new property - currently £194k against £225k.

Thank you

Is that the new property purchase price and new mortgage amount - £194k on £225k or am I misunderstanding?

That's 86% if it is correct. You'd be going from 63% to 86% and it may explain your current lender's reluctance.