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In debt but want to buy house
igoot
Posts: 3 Newbie
Hi,
I wonder if anyone could give me some advance advice...
I own a house which I think is currently worth £80k and I have £52k remaining on the mortgage. My girlfriend owns a house which is worth about £100k and has £85k left on the mortgage. We want to both sell our properties and buy something together a bit nicer. The problem at the moment is I have rolled up some debts amounting to £35k. Two of the debts are at the stage of charging orders against my property totaling £31K. My girlfriend is debt-free.
The best outcome for us would be to sell my house first and clear the debt and then either part-exchange the girlfriends house or sell and buy.
As you can see my debt is more than my equity. I am wondering the best way to tackle this. My questions are:
1. Would I be able to negotiate with my creditors to ensure I come out of my mortgage without debt?
2. Would my resulting credit file prevent me from being mortgage worthy?
3. Are there any other magic pieces of advise?
I wonder if anyone could give me some advance advice...
I own a house which I think is currently worth £80k and I have £52k remaining on the mortgage. My girlfriend owns a house which is worth about £100k and has £85k left on the mortgage. We want to both sell our properties and buy something together a bit nicer. The problem at the moment is I have rolled up some debts amounting to £35k. Two of the debts are at the stage of charging orders against my property totaling £31K. My girlfriend is debt-free.
The best outcome for us would be to sell my house first and clear the debt and then either part-exchange the girlfriends house or sell and buy.
As you can see my debt is more than my equity. I am wondering the best way to tackle this. My questions are:
1. Would I be able to negotiate with my creditors to ensure I come out of my mortgage without debt?
2. Would my resulting credit file prevent me from being mortgage worthy?
3. Are there any other magic pieces of advise?
0
Comments
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If your debts are at the stage of charging orders on your house then it's unlikely your credit will be any good.
I'd sell them both, pay all your debts off, find a small cheap rental property and save like you've never saved before for the next 6 years until all the defaults and arrears and dropped off your credit report and then buy a house.
Hopefully by then your girlfriend will be your wife and sharing money won't be an issue.
At the moment you have £180k of housing and £172k of debt so you will have something to start with.:footie:
Regular savers earn 6% interest (HSBC, First Direct, M&S) Loans cost 2.9% per year (Nationwide) = FREE money. 0 -
Thanks Happy,
Why sell both? Would it not be better to sell mine and keep the girlfriends mortgage until my credit rating is better?
I would also like to add that the charging orders and defaults that appear on my credit file are dated 2007.0 -
hello,
i would recommend that you pop over to the mortgages board as you can get some advice from brokers re bad credit mortgages. however i would imagine best option will be to live in your gfs house and as happy suggests, save until your credit history is clear and then look for something bigger. tbh ppl on the mortgage board are being rejected for a few missed payments and i am having to pay my £4k cc off despite having perfect credit score just to get an offer so i dont think its looking good
:j:j:j:j:j:j:j:j:j:j:j:j:j:j:j:j:j:j:j:j0
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