In need of sound advice on remortgage with bad debt?

desperatemumof1

We have been considering moving house to downsize and pay off outstanding debts. I have spoken to our mortgage company today ( Barclays) who have said they will not offer us a remortgage due to past credit issues and payment plans we had put in place to pay off outstanding debts. Due to this my other half's credit score is Poor and mine is Good. We have never been bankrupt, never had an IVA or a CCJ.

The outstanding on the mortgage is 120k and the house has just been valued at 420k. The debt we need to pay off is approx. £30k.

I don't know where to start looking now as Barclays have said all of the bigger banks / Building Societies have the same policy concerning recent bad debt history and we will not get a remortgage anywhere. (really helpful!)

Any advice on who to approach in this situation would be great or indeed what to do next.

Many thanks

Foxy-Stoat_3

Talk to a broker...unless your income is too low this shouldn't be a problem as your going from a LTV of 29% to 36%.

Dave_Ham

Well worth getting your Experian, Equifax and Call Credit reports in advance of hunting down a mortgage broker.

The value and dates of the defaults will be crucial, along with whether you are individually managing the debts (payment plans) or managing through a formal Debt Management Plan.