Mortgage advise for a current NRAM customer but with bad credit rating

Warpyb1

Morning all

I have a predicament that I could so with some advise on

Here's the deal

1. Mortgage with NRAM - poop rate
2. Currently interest only (paying around £500pm)
3. Value of mortgage 120ish
4. Would like to move
5. Earning around 40k a year
6. Have bad credit rating currently in a debt management plan.
7. Just had a baby
8. Wife at home looking after child.

So in a nut shell there we are.

The house value is about 125/145 ish

Question is has any one successfully used a 'bad credit mortgage lender'

Does anyone had any advise on what is required.

Hope someone can help.

M

opinions4u

If you owe £120k on a £125k property you're not going to get a mortgage elsewhere.

What's your plan to repay the mortgage? At some point you will need to face into that.

Have you considered selling up and renting?

_Andy_

As O4U has stated, no mortgage lender is going to help.

Dave_Ham

Hi there,

This is my specialist subject and have achieved countless bad credit mortgages as you call it, but I have to be realistic.

There are clients with historic bad/adverse credit but are in a different place now and can prove this.

I am not judging you are your position by any stretch, but you need answers to the following:

If you have an interest only mortgage and assuming you want a more expensive place, how are you going to afford the increased repayment mortgage? Interest only mortgages are pretty much extinct

Do you have a separate deposit or parental gift to achieve the deposit on new place?

Given that pre-baby I assume you both worked and ended up in a DMP, with a dependent how is this going to improve?

This sounds negative, but just want to be realistic with your expectations.

Onto solutions, subject to the above answers what value is the unsecured debt and who is managing this for you.

Achieve copies of your experian, call credit and equifax reports and get into the detail to advantage yourself for the future.

Be really honest with each other and families and see if there is any financial support now you have a young family and have different needs...

Use some of the other sub forums regarding saving and clearing debt as some really useful members on there...

All the best

Thrugelmir

Warpyb1 wrote: »

Does anyone had any advise on what is required.

Your first objective needs to be to exit the DMP.

Then you need to start repaying the capital balance owed on your mortgage.

Given your financial circumstances in their entirety. NRAM is by far the best option available to you.

Mort

Hi Warpyb1,

I stumbled across your post and thought you might get some useful input from the Debt Free Wannabe (DFW) area of this site.
I have not used a mortgage broker in years but whilst on my DMP was able to change products with the same lender as this did not require a credit check (I guess that this is not an option for you as you are with NRAM). I was turned down for a loan to replace the CH boiler due to defaults and the DMP situation, so getting a new mortgage might be difficult.

You will be asked to complete a Statement of Affairs, here's the link SOA, a word of warning you may/will get challenged about what you are paying for some items.
Hopefully you are with one of the free DMP providers like Payplan, CCCS - now Step Change or Christians Against Debt. If not change, any fee you are paying a "professional" company is better being put towards the debt.

Warpyb1

Some really helpful advise there thank you.

I will have a look around.

The mortgage has been on interested only due to me not getting back in touch with NRAM to reset it back up as a repayment.

The dmp has been in place for a number of years after a huge loan from nat west went bad.

How they thought I coul afford such a sizeable loan is anyone's guess but at the time we could get loans for anything.

I often wonder if there would be anyway of challenging their decision back then ?

Anyways thank you everyone for your help so far.

Some really good advise.

M

Dave_Ham

No way at all - forget this chain of thought..

You asked, they gave and they are entitled to expect you to repay

bigadaj

Does no one have any sense of personal responsibility any more?

Warpyb1

Obviously not !

Thrugelmir

Warpyb1 wrote: »

How they thought I coul afford such a sizeable loan is anyone's guess but at the time we could get loans for anything.

I often wonder if there would be anyway of challenging their decision back then ?

So you were happy to apply for a loan and spend the money?

Now you regret the decision and wish to blame someone else.

If only it was so simple.