My great mortgage disaster

Spiggott

I've been forced to leave my job. At the moment, I'm still employed and earn a decent salary (over 40K).

I have 140K outstanding on my mortgage. My flat was recently valued at 325K.

I have a 5K credit card. And before I either sell or let out my flat, I need to spend a few grand on repairs. I have no savings to speak of.

I was planning on spending the summer working out what I want to do next. I need some money to keep me going while I do that.

My mortgage is with Halifax. I enquired about a further advance of 10K or 20K. The mortgage payments would be roughly what I pay now - 760 or 805 a month.

I visited the mortgage advisor today and was declined after a credit check. The advisor said he thought the decision was ridiculous. But he thought it might be because the Halifax had been forced to tighten their lending criteria. (Within the past 12 months, I've missed one, possibly two, credit card payments. A utility bill was passed on to a debt collector - but I've since sorted that. My nose has been clean for at least six months. I have no CCJs against me.)

Running a mortgage comparison through Google (based on 160K lending on a 325K property) suggests two-year fixed-rate payments of around 730.

Is my best option to remortgage with someone less conservative than Halifax? Does anyone know any likely candidates?

(The most sensible option - staying in my job - isn't viable.)

Please help...

mrginge

You have three marks against your financial management and no job.

Why would they give you more money if you have no income to pay it back?

Spiggott

I still have a job, mrginge.

Thrugelmir

If you've recent history of late payments and debt collection involvement then you'll find many doors closed. Nothing to do with being conservative either. Lenders are under regulatory obligation to lend responsibly and ensure that the debt is affordable to the borrower.

With recent warning flags on your credit file. Advancing another £10k to £20k would be a concern. Allied to the fact of what the purpose of the equity withdrawl was for.

I certainly wouldn't read anything into the mortgage advisor's comments. Totally the reverse in fact.

Spiggott

Thanks, Thrugelmir.

I have bad habits with late/missed payments. I do this despite having a comfortable income. It's financial self-harm. It's always about ignoring trivial amounts of money. Not rational behaviour.

I didn't realise this stuff had affected my credit score so badly. Makes perfect sense that doors are closed.

So have you any idea how long I have to wait until doors start opening again? Are all doors closed now? (I've just requested an Experian check.)

ethank

The fact that you are prepared to increase your debt without having an income to service it says that it is not important to you.

Don't take the summer off to work out what to do next, take action now.

dimbo61

" I've been forced to leave my job "
Get another job if possible? You need to pay the mortgage you already have and bills!
Can you get a lodger ? TWO BEDROOMS!
If your flat is worth £325K I guess you live in London or south east????
Not many £325K flats in Blackburn or Blackpool.
Sort out all the bills by direct debit before you trash your credit score

mrginge

Spiggott wrote: »

I still have a job, mrginge.

Yes but you told the halifax that you were shortly to become unemployed didn't you.

So effectively you were asking them to advance you more money with no job.