jw

jlw123_2

Please can someone help me! i have a mortgage of 98000 house worth around 130000, sercured loan of 38000. I have very low credit score and my husband has poor score, we have debts of around 30000, however things have changed recently and iam now earning a good wage as is my husband. we would like to sort out mortgage maybe put soon of sercured loan on it and maybe think about moving, can anyone advice if this maybe possible and where do i start! many thanks

kingstreet

Your secured credit exceeds the value of your property. You won't have a deposit for a new home if you sell, in fact you'll still owe your existing lenders, that's if they will allow you to sell.

You need to use some of your increased income to reduce your existing credit.

ACG

To be very direct - no.
As kingstreet says, your mortgage and loans together total more than the value of your property by around £6k, you then have £30k of debt to sort out.

Before you can move house, you need to first get to the point where lenders will actually lend you what you want, with £30k worth of debt you would have to be on an incredibly high wage.

You then need to get the balance of the mortgage and secured loan below the value of what you sell your propert for and save up atleast a 15% deposit for the new property, depending on how bad the credit history is you may even need a bigger deposit.

In short, get your debts down (or better still, paid off).
Get the secured loan paid off.
Save up a 15% deposit.
Go and see a mortgage advisor - with bad credit you may need their help.

jlw123_2

Thanks for reply, do you think it maybe possible to put part of secured loan on mortgage.

kingstreet

TBH you'd need to ask your lender.

It's debatable they'd want to lend you any more on the information you've given here.

If they do, they'll only allow upto 90% of the value of the property as an absolute maximum, maybe even 80%. In which case, you're almost at that level now.

The value you place on your home may also not be the same as a surveyor employed by the lender who is valuing it for mortgage purposes would.

ACG

I dont think lenders do remortgages upto 90% for debt consol do they?
I would say 85% as a max, but i could be wrong - depends on ths lender. Thats also presuming you pass their credit check and lending criteria