Remortgage Help with Poor Credit

Baker27

Apologies as I am sure there are many, many similar posts but I am really keen to get some friendly advice.

I own a flat (in my name alone) that I thinking of selling as myself and my husband are looking to move areas.

About 5 years ago I came out of another relationship and went through a rough patch financially and got myself in debt.

I am currently in a debt management plan which I am keeping up with and have a CCJ of around £1500 which should be settled in the new year. I have never fallen behind with mortgage payments.

My new husband I are looking to move areas and buy a larger property as we have very much grown out my little 1 bed flat.

We have an income of around £55k per year and will have a deposit of around £20-25k. We think we would be looking at buying a larger property in a cheaper area for around the £100-140k price mark and would in theory be needing a similar size mortgage to my current Halifax mortgage on the flat.

I have no recent late payments or defaults in the last 2-3 years and my husband has a good credit rating.

We are open to all options, including renting, getting a specialist mortgage and even buying in his name alone.

We are just very keen to understand our options and would appreciate any thoughts on what may be best for us.

Thanks in advance :-)

ACG

This wont be easy, but due to the good incomes and potentially a 20-25% deposit it could be possible.

Your going to need to sit down with a broker and i would suggest one who is quite experienced or specialises in adverse mortgages - the issue is that your still in the DMP, even if you were out of it it would take a good few years before lenders would even consider you so i think this will be a more adverse mortgage you need... but it should be possible.

Baker27

Thank you ACG. I thought this may be this case. It may well be worth us looking at a mortgage in my husbands name alone or renting whilst I try and sort out my situation. However, not all doom and gloom so thanks.

ACG

Id still suggest speaking to a broker. Some lenders will question why its in a sole name or treat it as a joint app as you are probably financially associated?

Baker27

Absolutely will do, if we were to go down the buying route we wouldn't want to screw it up. However, at the moment we have managed to keep everything separate financially and he doesn't appear on my credit file as linked, but better safe than sorry!

Thrugelmir

Baker27 wrote: »

We have an income of around £55k per year and will have a deposit of around £20-25k.

Still in a DMP and unsettled CCJ.

What do you expect a financial institution to say in response to your application?

While you may think that you are being clever having interest free loans. The impact on your credit record is merely being extended even further to the distance.

Baker27

Well thanks for the friendly advice there! The deposit is equity in my flat and my husbands inheritance. I can assure there is no element of my situation of which I feel 'clever' about. I am working as hard as I can to clear my situation I can assure you, but it doesn't happen overnight as I am sure you can appreciate. I was merely seeking some advice.