Remortgage with 2 defaults

lalamb

We are thinking about remortgaging to do a few essential jobs around the house. But, my husband has 2 defaults on his credit file from 3 years ago, combined they are just less than £1000.

Our house is a Laing Easiform...I'm aware this could be a major problem in conjunction with the defaults.

House worth £115,000 approx
Balance of mortgage £72,000
Looking to borrow at least £14,000 but ideally we would like to borrow £20,000

We have no other loans etc, no missed mortgage payments, only the 2 defaults, like I said, from about 3 years ago.

Can someone offer any advice please?

kingstreet

How accurate is that valuation?

A capital raising remortgage is going to see many lenders top-out at maybe 80%, or 85%. The defaults will probably limit your options to around 80% too.

For £92K on £115k, that's exactly 80%. If the valuation is lower, you are going to find your maximum loan reduced.

Laing Easiform - if repaired to acceptable method/standard, should be mortgageable on standard terms. If in original condition, it's defective and unmortgageable.

Definite broker job this.

shortchanged_2

What do you need to borrow the extra money for, is some of it for debt consolidation?

lalamb

kingstreet wrote: »

How accurate is that valuation?

A capital raising remortgage is going to see many lenders top-out at maybe 80%, or 85%. The defaults will probably limit your options to around 80% too.

For £92K on £115k, that's exactly 80%. If the valuation is lower, you are going to find your maximum loan reduced.

Laing Easiform - if repaired to acceptable method/standard, should be mortgageable on standard terms. If in original condition, it's defective and unmortgageable.

Definite broker job this.

I'm basing the house price estimate on other houses in my area, but ours has an extension, giving us an extra double bedroom, an extra living room/lounge, and a larger kitchen.

The properties themselves are sound, there have been quite a few bought and sold in my neighbourhood so I don't understand how if they are unmortgageable?

I would be happy to borrow £14k that would take it to £86k........Ideally we would've liked more but understand this could be more difficult.

lalamb

shortchanged wrote: »

What do you need to borrow the extra money for, is some of it for debt consolidation?

It's to carry out work around the house, like I said in my post.

kingstreet

lalamb wrote: »

I'm basing the house price estimate on other houses in my area, but ours has an extension, giving us an extra double bedroom, an extra living room/lounge, and a larger kitchen.

The properties themselves are sound, there have been quite a few bought and sold in my neighbourhood so I don't understand how if they are unmortgageable?

I would be happy to borrow £14k that would take it to £86k........Ideally we would've liked more but understand this could be more difficult.

Some concrete property was deemed defective under the Housing Acts of 1984 and 1985 and the Housing Defects Act. You can read up on them, if you have a mind. Repair schemes were established and provided the property was repaired according to an approved scheme, it was removed from the defective list. That would make the property mortgageable.

As an example, one lender stipulates it will not lend on "Easi-form construction (except by Laing from 1945 onwards)." So, you'd need to establish the year of construction and the repair status to be sure of approaching the right lender.

For an accurate valuation, check the sold property prices on the Land Registry site for recent sale in the vicinity as this is what your lender's surveyor will use for his "comparables."

lalamb

kingstreet wrote: »

Some concrete property was deemed defective under the Housing Acts of 1984 and 1985 and the Housing Defects Act. You can read up on them, if you have a mind. Repair schemes were established and provided the property was repaired according to an approved scheme, it was removed from the defective list. That would make the property mortgageable.

As an example, one lender stipulates it will not lend on "Easi-form construction (except by Laing from 1945 onwards)." So, you'd need to establish the year of construction and the repair status to be sure of approaching the right lender.

For an accurate valuation, check the sold property prices on the Land Registry site for recent sale in the vicinity as this is what your lender's surveyor will use for his "comparables."

Looking at the Land Registry I think my estimate is probably spot on, give or take a couple of thousand.

And I'm sure it was built in the 50s

Having discussed it further with my husband we've actually decided to pay off the 2 defaults now, and look into remortgaging in a couple of years, but try with our bank rather than go for a high interest mortgage. I think it makes sense. The smaller jobs around the house will get staggered, and the major jobs like new boiler/central heating will have to wait a couple of years.

Thanks again for your advice......