Help wanted - Remortgage to get out of a Trust Deed

verderci

Hi

Can anyone help?

I'm in a trust deed but want to re-mortgage my house to buy myself out. I have asked my current mortgage company (Lloyds TSB) but they have refused (I take it becaue I have a poor or should I say non existend credit rating). I now want to start building up my credit rating. Am I going to get stung with a high rate?

Current mortgage 121K

Value 160K

Need to pay off Welcome Finance 15K
Need 5K to pay off Trust Deed

Is this posible????

Any help would be really appreciated.

JoeK_3

verderci wrote: »

Hi

Can anyone help?

I'm in a trust deed but want to re-mortgage my house to buy myself out. I have asked my current mortgage company (Lloyds TSB) but they have refused (I take it becaue I have a poor or should I say non existend credit rating). I now want to start building up my credit rating. Am I going to get stung with a high rate?

Current mortgage 121K

Value 160K

Need to pay off Welcome Finance 15K
Need 5K to pay off Trust Deed

Is this posible????

Any help would be really appreciated.

You will need to post your gross household income.

Joe

herbiesjp

What is has happened in the past that has affected your credit rating? Do you have up to dates copies of your credit file?

Assuming your income is enough to support the mortgage, and you are right about your credit rating, adverse credit deals are indeed higher than normal prime high street rates

What rates, and what mortgage amounts will be offered to you will depend a lot on your credit history. This is not as straight forward as it sounds, as all lenders have different ways of classifying adverse credit history, and so one lender may offer a near prime deal and another a medium adverse rate

Best suggestion would be to chat your case through with a fee free whole of market adviser

verderci

JoeK wrote: »

You will need to post your gross household income.

Joe

My income 22K
OH income 48K

Mortgage £742
Cars £310
Bills £300
Rent £400 (Army house)
Food £350

Hoping to get £400 income for house (mum lives in it and put in a claim with the council)

Is that all you need?

verderci

herbiesjp wrote: »

What is has happened in the past that has affected your credit rating? Do you have up to dates copies of your credit file?

Assuming your income is enough to support the mortgage, and you are right about your credit rating, adverse credit deals are indeed higher than normal prime high street rates

What rates, and what mortgage amounts will be offered to you will depend a lot on your credit history. This is not as straight forward as it sounds, as all lenders have different ways of classifying adverse credit history, and so one lender may offer a near prime deal and another a medium adverse rate

Best suggestion would be to chat your case through with a fee free whole of market adviser

I dont think I hav a credit rating at all - I'm still in a trust deed

JoeK_3

Your income appears to be OK and the potential remortgage is a goer.

Go to http://www.experian.co.uk and request your credit file.

As stated in the previous post, dependent upon your credt history, interest rates could be higher.

What rate are you currently paying at Lloyds TSB.

Can you explain the new mother thing that you introduced. Will she be a lodger?

Do you live in Scotland?

JoeK

verderci

JoeK wrote: »

Your income appears to be OK and the potential remortgage is a goer.

Go to http://www.experian.co.uk and request your credit file.

As stated in the previous post, dependent upon your credt history, interest rates could be higher.

What rate are you currently paying at Lloyds TSB.

Can you explain the new mother thing that you introduced. Will she be a lodger?

Do you live in Scotland?

JoeK

Yeah my mum lives in the house and I'm hoping that I will be able to gt some rent for it.

Yep I now live in Scotland, the guy who helped us enter our trust deed (cost us £1000) says he can help us get out of it but dont want to be ripped off (dont really have the money to pay him anyway!)

I'm paying just over 5% with Lloyds fixed term ends Jan 08.

My understanding is that I wont be able to get a high street mortgage.

JoeK_3

Can be done!

JoeK

verderci

JoeK wrote: »

Can be done!

JoeK

Is that better than a remortgage? and is that still based on my credit rating (or lack of it?)

JoeK_3

Your credit rating is there for all to see and Lloyds TSB can't do anything as long as you continue to pay your mortgage.

The ideal would be if you could raise money from them, as you may not be hit as hard with interest rates, plus you will not incur any redemption penaties.

Did you go into the trust deed after you arranged the Lloyds mortgage?

JoeK

verderci

JoeK wrote: »

Your credit rating is there for all to see and Lloyds TSB can't do anything as long as you continue to pay your mortgage.

The ideal would be if you could raise money from them, as you may not be hit as hard with interest rates, plus you will not incur any redemption penaties.

Di you go into the trust deed after you arranged the Lloyds mortgage?

JoeK

No, I entered my trust deed a year ago and bought the house 2 1/2 yrs ago. I'll get on to Lloyds - they can only say no!