moving house with defaults - is it possible??

jim-jim

Hi there, bit of back ground history.
Mortgage with Barclays owe approx £52k 12 years left to run. Value £85-90k
Have cc debts of £15k, 4 cards in total, 2 defaults for me & 2 for other half. Plus Barclay card £3k no arrears or defaults. Owe family member £13k.
We are thinking of ways to sort ourselves out and start a fresh. Would it be possible to put the house up for sale, sell it clear debts, remainder put down as a deposit on a new house.
Does anybody know if you can transfer a mortgage over to a new property?

I have tried to ring but lines are closed until tomorrow.
Would we be able to keep/get a mortgage? We are looking to borrow no more than £70k on combined wages of £29k.

Thanks for any advice

_Andy_

How old are the defaults and for what amounts?

Basically unlikely they would approve it.

Whilst you can 'port' a mortgage to a new property, it's treated as a new application and underwritten as normal. Thus the defaults would be a massive issue.

amnblog

Barclays wont let you move the mortgage if they dont like your current credit position.

Depending on the full case you may have options with other lenders.

Sounds like you are struggling to manage everything so get yourself some sensible advice from a broker who deals with bad credit cases.

jim-jim

Hi thanks for the replies.
We obviously need to sell to clear the debts (had defaults 2 yrs). Was going to give F&F offers for the £14k. Renting is a lot more than the mortgage we have at the moment or what we could possibly afford.

Debts are from a business venture that went sour, I was advised to use cc as had no other means of funding it.
Catch 22 need to sell to clear debts but cant sell if we no longer can get a new mortgage, as renting is too much.
I'm stuck I've run out of ideas of what to do.

Dave_Ham

Are you on one of the low Woolwich trackers where your current mortgage payment is very low?

Dave_Ham

Irrespective of the above question, 15% is likely to be your magic number.

If you can sell (including fees) settle debts for whatever amount you can achieve and then still have 15% deposit of purchase price + fees then you can still move.

jim-jim

Yes we do have the low base rate tracker.

Sorry is the 15% the rate we would be paying back at or the minimum deposit we would need.
I'm not able to ring them until later, so just trying to work out some options.

ACG

nooooo its the deposit you need. 15% would be a secured loan rate not a mortgage rate :-P

The rate would likely be below 5%.

Dave_Ham

15% is the deposit you would require.

Your issue is and will remain, if you are unable to pay back the debts whilst your rate is unusually low; how will you cope with a higher rate-higher value mortgage albeit with no debt.

Woolwich will not let you port this mortgage given your situation I am afraid.