mortgage with defaults ?

hmpm

hi all hope someone can help


my partner and I have a joint mortgage
we have never missed a payment in 21 years but we did remortgage so still have a mortgage with 14 years left on it and £55000 still owing
our house is worth £150000


we would like to move and downsize house value to around £135000 but my partner has 3 x defaults with credit cards (£6000, £3500 x 2 ) all settled nov 2013 F & F partial settlement and the defaults dates are 2.5 years ago for all 3.


we have no other debts or other bad credit score just the defaulted credit cards in partner name


although weve always worked due to health problems on both our sides (I am 48 partner is 51 ) we at the moment are unable and are on benefits




we are receiving esa , dla , iidb and ca total income of £1300 per month


can someone please advice us of our options


can we move and still get a mortgage on benefits with defaults or are we stuck here until defaults clear off credit file or we are both back in work ( I am unlikely to work again but partner Is hopeful once im stable in smaller more manageable home)which is reason for move


thanks in advance to all

ACG

You can get a mortgage with defaults.
You can get a mortgage on benefits.
I dont think you can get a mortgage with both of those. The only lender i know that may accept it would not until the most recent default is 3 years old.

Thrugelmir

F&F settlement will certainly impact you negatively.

hmpm

hi again thanks for the advice I haven't as yet asked our current lender who we have been with for the 21 years I guess we just wanted a heads up on what we have and what we haven't got in way of options to move it would also help us to live somewhere smaller with the bills in general so the mortgage would be less that we would need is it taken into account that we want a smaller mortgage we don't want to take any equity from the property our house is worth £150000 if we bought something for £20000/ £30000 less we would only need to take the £35000/£25000 mortgage with us we have a portable life time tracker 0.89 + base rate unfortunately we cant buy anywhere in our area for the £95000 that we would have if we wanted to be mortgage free or we would do this would we be eligible for a loan for £25000 instead of a mortgage sorry for all the questions just frustrated and desperate to move and live within our means our kids have left home we live in 4 bed house that we don't want or need

Dave_Ham

I would try and get some formal advice. What a shame to lose your current rate, although given the assumed lender they are unlikely to agree a port unless you put them under intense pressure given your situation. Even then I am not sure.

There are likely to be solutions on a downsize, although appreciate a huge decision and therefore consider your options and get decent, formal advice.

Good luck

ACG

hmpm wrote: »

we have a portable life time tracker 0.89 + base rate

Its unlikely you will be able to port your deal.
Moving to a new lender is going to mean you will be on a high rate that that, which in turn means the repayments will be higher.

You are probably unlikely to be making a cash saving each month by downsizing due to the difference in rates.

I could be wrong as i have not done the sums but it would be worth checking that, dont assume reducing the size of the mrotgage will reduce your payments if you have to switch lender/rate.

hmpm

thank you so much for the advice