Any chance at all?

nanato2

Hi

Just after a bit of advice really. We own (outright) our house, having paid off the mortgage around 4 years ago at the end of the 25 year term. House is worth around £100,000.

We have been trying to sell without any luck and have now decided to stay put. We are looking instead to improve the property, for our own benefit, and will probably stay here long term now (have already lived her 20+ years). Ideally, we would want to fund a new bathroom, new roof, do something with the loft, general updating, and do the garden.

Now the query! We are looking to borrow between £20,000 to £25,000. I made a tentative online enquiry with Halifax (who we had our mortgage with) asking to borrow £20,000. I had a call the next day, the advisor took me through security, asked me how much I would want to borrow, and then said our application was declined, as I had put on the form that we had arrears in the past.

Looking at our credit report, we have one major stumbling block, which is a default from April 2011, Capital One. We do have a few other late payments, but at the moment, on Equifax, everything is green, apart from the Capital One. A Homeowner loan from Halifax (which was paid off) is still showing, but not the Mortgage which was paid off - is this usual.

Everything else is in order, we are on the electoral roll, no CCJs, bankruptcy or anything like this.

As we don't have a mortgage at the moment, is it possible to remortgage or to get a homeowner loan, and are we likely to get one, given the above history? Is it like taking out a mortgage where if we were asking for £25,000 we are treated as having a £75,000 deposit (i.e. the total of the value of the house?), so would our LTV be 25%?.

When Halifax rang, they asked if we had a mortgage with them and I explained that we used to have, but she did not ask me any more questions about this, and I didn't mention the previous Homeowner Loan - do you think that would have made a difference to the outcome?

I am reluctant to apply again anywhere until I am confident that we have a chance of being accepted. Am I best to go through a broker, or does anybody have any suggestions on the likelihood of acceptance and can advise?

I currently have a Vanquis card with a balance of almost £3,000 which I pay off at around £150 per month. I would hope to clear this if I got the funds, so the money released from this would go a long way towards the monthly repayment of any mortgage/loan.

Appreciate any advice.

Thanks.

Nanato2

ACG

You dont say what your incomes are but in theory this should be possible.

Might be worth speaking to a broker, they can look at secured loans or a mortgage - to see which is better for you.

nanato2

ACG wrote: »

You dont say what your incomes are but in theory this should be possible.

Might be worth speaking to a broker, they can look at secured loans or a mortgage - to see which is better for you.

Hi ACG

Sorry, I work part time, earning around £18000 a year, husband is medically retired and gets a small pension of around £4200 per year, DLA of £2652 per year and ESA of £4920 per year, so approx £30000 per year between us.

What do you think?

Thank you.

Nanato2

ACG

This should be possible to place.

Get your credit reports down to a broker and there shouldnt be any major problems.

nanato2

Thank you ACG, this gives me a bit of hope!

Nanato2