Bad Credit Mortgage following divorce - any mortgage brokers in?

debtor03

Hi All

I am need of advice on what to do in a sticky situation.

Long story short - getting a divorce, house is in joint names, £130k mortgage, bought for £170k but now only worth about £135k due to the property slump.

Due to excessive spending on both sides, we managed to rack up around 50k in unsecured debt through a variety of lenders, mostly in my name, and ended up on a DMP paying £200/month back. So I've a few defaults on my file and bad credit history.

I need to transfer the mortgage in my name but I'm not sure the bank (Santander) is going to agree - our mortgage repayments over the 5 years that we've had it have been perfect, but obviously the bad credit history will go against me.

Regarding affordability, obviously it's probably unaffordable as well for one person on an income of 30k, but my one big saving grace is that relatives have offered to give me up to 75k to pay off a big chunk of the existing mortgage, meaning that it would only end up being a 55k mortgage on a property worth 135k - a much better LTV!

What are my chances and would I be better off trying to remortgage with a specialist lender, few as they are?

Thanks for any advice

Thrugelmir

Given that you are in a DMP then there's no possibility of Santander agreeing to your proposal.

Better that you come to a formal arrangement regarding the property. With one of you continuing to live in the property and continuing to repay the mortgage.

Use your relatives money to clear your personal debts. This will at least allow time to start to repair your credit rating.

debtor03

Thrugelmir wrote: »

Given that you are in a DMP then there's no possibility of Santander agreeing to your proposal.

Better that you come to a formal arrangement regarding the property. With one of you continuing to live in the property and continuing to repay the mortgage.

Use your relatives money to clear your personal debts. This will at least allow time to start to repair your credit rating.

Thanks but this isn't an option as we need to make a clean break and need her name off the house to do so so she wouldn't have a claim in the future.

Thrugelmir

debtor03 wrote: »

Thanks but this isn't an option as we need to make a clean break and need her name off the house to do so so she wouldn't have a claim in the future.

Then due to your financial circumstances the choices available to you are very limited.

Selling up , clearing your debts and renting for a while maybe your only option.

Dave_Ham

Until I saw the injection of cash (assume a gift) from relatives there would have been no hope...

With this, there is hope but given your situation you will be paying a premium. You will also have to ensure your relatives qualify the money as a "gift"

Obtain your experian, equifax and call credit reports and put them in front of a broker, as you will require one to obtain this deal. You also need to ensure the legal process is undertaken appropriately, and your ex is complicit.

debtor03

Dave_Ham wrote: »

Until I saw the injection of cash (assume a gift) from relatives there would have been no hope...

With this, there is hope but given your situation you will be paying a premium. You will also have to ensure your relatives qualify the money as a "gift"

Obtain your experian, equifax and call credit reports and put them in front of a broker, as you will require one to obtain this deal. You also need to ensure the legal process is undertaken appropriately, and your ex is complicit.

Thanks for that - assuming I receive the expected rejection, may I contact you about this matter with my credit reports in a couple of weeks?

Conrad

As long as no arrears or very recent missed payments you might have a chance if the whole thing is affordable, meaning the lender will be very interested in your existing debts and whats happening to them.

The rate will be very high, and often they are declining interest only. People prefer me to give warm fluffy hopefull messages, but I prefer telling how it is.