Happily in a better financia position but will previous bad credit stop house moving?

Agentmomo

Hello,
I am after some advice please.
10 years ago I split from my ex husband (he subsequently went bankrupt)
Long story cut short now:
He left me in significant debt, I took around £20k from our marital home, however he left me with around a further 30k in debts.
I managed to purchase my own home in 2004 (Northern Rock now NRAM were happy to overlook my massive loans and credit cards). It will come as no surprise that I struggled a few years later, taking out a secured loan to pay off the credit cards.
I also didn't manage my debts correctly. (Ashamed to say that Pay Day loans were a big part of my financial affairs for over a year) I have learnt a huge lesson to ensure that Mortgage, Secured Loan and Council Tax are the priority debts to pay! Sounds easy but when you are in a financial mess, it is so easy to not see this!
I have worked hard to pay those debts off and I am now in a much better position and wish to move house.
Current situation:
I have a default that has been partially settled (2011) - On credit report as satisfied.
I have not relied on a pay day loan since Jan 2013 (2 years) - Although all of these loans show on my credit report.
The last 2 years have been significantly financially better, no missed payments at all.
I would like to move house now...
Here are the current figures:
Outstanding mortgage (still with NRAM) £61380
Outstanding secured loan £1750
Current House Value £99950
Therefore circa £35000 equity
Annual income £40000


With my credit history what do you think my chances of being able to move are?


Any advice welcome..


Thanks in advance..

amnblog

Your chances are good with the right lender via a broker.

Assuming you don't want to treble your house size!

Agentmomo

Thanks Amnblog, no I don't wish to treble my house size, sensibly I have learnt my lessons and I wish to buy a larger property but one that I can comfortably afford. would look for a mortgage around £100k and a property value around £135k.


Do you think this sounds like the right thing to do?

Dave_Ham

Can't really say if right, although with the right lender you are likely to find a solution on sensible terms

Agentmomo

Thanks Dave Ham, I am just trying to gauge what the thoughts are before I go mortgage shopping and end up with multiple searches on my credit file (which I know is a bad thing!)

lonestarfan

Good luck with it all but don't leave yourself short and get in a mess by not budgeting out of your equity for things like estate agent fees, Solicitors fees, stamp duty, removals, survey, arrangement fee, reports on things such as the gas central heating, damp proof etc that sometimes mortgage providers want.

Thrugelmir

Did you manage to settle your other debts such as credit cards without entering a DMP or making arrangements to pay with lenders.

Agentmomo

Thrugelmir wrote: »

Did you manage to settle your other debts such as credit cards without entering a DMP or making arrangements to pay with lenders.

Hi what's a DMP?

Agentmomo

Thruglemir, thanks for your post, I just googled DMP and I presume you mean Debt Management plan? If so I have never had a DMP. However saying that, in the past I did get into arrears with both my mortgage and secured loan. I am no longer in arrears (although I did have an arrangement to pay whilst in arrears) I have been up to date and all arrears paid off for 2 years. My secured loan paid off my credit cards


Will this help me in my quest do you think?

Agentmomo

lonestarfan wrote: »

Good luck with it all but don't leave yourself short and get in a mess by not budgeting out of your equity for things like estate agent fees, Solicitors fees, stamp duty, removals, survey, arrangement fee, reports on things such as the gas central heating, damp proof etc that sometimes mortgage providers want.

Thanks Loanstarfan, I have already considered these costs and have the means (savings) to cover these. Thanks for your considerate post:)

Thrugelmir

Much depends on lenders own criteria. As to what impact particularly events will have i.e. mortgage arrears. and in what time frame.

Continue to focus on the positives though. If you can afford a larger mortgage. Pay down your loan/mortgage as much as you able. As will help tilt the balance in your favour.