complicated situation (mortgages)

crux1978

I have a house worth 95k and 89k outstanding with nram. I rent this out50 k, I have to top up the mortgage by £70 per month but will continue to rent this out as an investment as after fees we may or may not only break even if we sell it.

my partners house is worth 168k ish (had offers) outstanding mortgage 100k.

We want to sell my partners house and buy a place valued at 155k with a 50k (we have an eye on a place) deposit from the equity from the sale of my partners home. We are sacraficing area to gain space.

We got a mortgage quote which was fine and put the house on the market.we have had lots of interest and offers so we applied for an agreement in principal at a broker. We were shocked to discover we were declined due to my credit history. I gained access to experian and was shocked to see a string of negatives.

to summarise, the last 9 mortgage payments are fine but the 16 before were 1,2,3 and even a 5 in no particular order. i met financial hardship about 3 years ago and had some arears. I made an arangment and went on interest only until about 9 months ago. I don't know what has happened but nram are not budging and i have to wait up to 8 weeks for them to investigate before I can escalate the issue. There are other minor issues but this is the one stopping us getting a mortgage.

Our broker can't find us a mortgage, we have buyers waiting, we have found the the right house in are budget and have set our hearts on it, we have 4 kids an us in 2 double bedrooms and 1 single. We need to move. My partner does not work so can't get a mortgage by herself. Any advice would be appreciated.

TBeckett100

The only thing I can add is if your financials are a bit fragile, even a ropey high interest mortgagr may become problematical when interest rates rise. I'd wait a couple of years for your credit to improve and then look to buy. It's best not to overstretch with high repayments and risk losing the family home over it. It must be disappointing.

Thrugelmir

crux1978 wrote: »

I don't know what has happened but nram are not budging and i have to wait up to 8 weeks for them to investigate before I can escalate the issue.

Not sure what you are trying to escalate. Your credit history is factually correct. Lenders will base their decision on your credit history and personal circumstances. Goes without saying that mortgage arrears are a major negative to other mortgage lenders. The let property won't help you either. Very easily could become a millstone around your neck. Personally I would sell the property rather than taking a speculative punt.

crux1978

Thanks for the replies, to elaborate I paid my arears off before going to interest only, I went interest only later. I was not told that going interest only would affect me getting a mortgage in future. One mortgage is fixed at 5% and the nram one is 4.6% variable.

TBeckett100

You'll be expected with a new mortgage to go repayment or be able to prove you have an existing payment plan in place for the mortgage.

crux1978

Both mortgages are up to date and now on repayment.

Thrugelmir

crux1978 wrote: »

Both mortgages are up to date and now on repayment.

Lenders will base a decision on your last 6 years history not the last few months.

No one is judging you for what happened, but it did. Lenders will therefore require a clear period before they'll consider advancing money again.