Mortgage Advice

thicks56

Hi,

I'm new to the forums and am after some advice, if this is in the wrong section then I apologise,

I currently own a house that I paid £85K for in 2008 which is probably just about in negative equity now as we did a fair bit of work to it,

I would like to look into moving into a bigger house as I have just had my second child and our house is not really big enough now.

However I have an awful credit rating as I have about 15-20K pounds of debts which I am currently only making token payments to.

Unfortunately I cant afford to make any more than token payments currently as my new job is a low wage and I am only just managing to pay all the bills,

Is there anything do to help me buy a bigger house or am i pretty much stuck until I get my debts paid off and credit rating up?

thanks in advance for any advice.

Tom

shortchanged_2

How do you expect to pay for a bigger, more expensive property when you can't cope with your current financial commitments.

So in answer to your to your question, no, you have no chance of getting a bigger property. Sorry to be so blunt.

Squirrel2000

If it was me in your position, I would explore the possibility of renting out your current home ( talk to your mortgage company; get a letting company round to assess rent potential ) and then maybe look at renting a bigger property in a cheaper area.

thicks56

shortchanged wrote: »

How do you expect to pay for a bigger, more expensive property when you can't cope with your current financial commitments.

So in answer to your to your question, no, you have no chance of getting a bigger property. Sorry to be so blunt.

Don't worry about been blunt, its a fair point that reminded me of abit of info that I forgot in the first post,

I may soon be able to reduce some of the bills that im paying out by about £150 a month,

So there is a possibility that some of that could go towards paying a larger mortgage,

However with my previously mentioned debts and rubbish credit score is there any chance that I will be able to get a larger mortgage?

Or am I just better off putting that straight into paying off my creditors (which would be my first option if I wasn't struggling for space.)

Brock_and_Roll

None whatsover! Look at it from a lenders perspective, you are already in default on some of your other financial committments, so in their eyes you are a proven non-payer.

The only way you would evet get a mortgage with this level of current default is if you had a whopping deposit - 50% plus. But then if you had that kind of deposit, you would have been able to pay the loans off etc.

Given your financial situation and the fact that even if you threw an extra £150 pm at the loans, it would still take you 10 years + to pay them off. As you have no assets, you might want to pop along to the Bankruptcy and Living with it board where you will get some excellent advice as to whether a formal debt solution might be appropriate (your credit record is trashed anyway)