Would I be able to get a Mortgage???

Big_John_246

Please excuse the way this letter is written as I suffer with dyslexia quite badly and righting letters is something I struggle with.

Some years ago I was out of work for some time as I sustained a back injury.

I was laid off by the company I worked for, I took them to court due to the injury as I was told I will be off work for some time and I was taking them to court so we had some money to help with bills and general living. I lost the court case.

I ended being out of work for around 5/6 years and to survive we got credit cards and over the five years we accumulated a debt of just around £22,000; we also cashed in two endowments that we had with the mortgage to help.

We are in a debt management plan to pay the other debts which we have got down to just under £7,000.

We knew we had to sort the mortgage out as we had cashed the two endowments in when I was out off work, we contacted the Abbey National who are now know as Santander, to rearrange the mortgage and we wanted to go on to a repayment after a two hour phone call full of ridicules and really silly questions I was informed that they would not be able to give us a new mortgage, we only have eight years left on the endowment and cannot afford to take a new endowment to cover the final amount, we also cannot afford the fees to have a fixed rate.

It is quite ironic, I tired stopping an armed robbery in one of there branches some years ago and ended getting hit over the head which required stitches, but when I need there help they say they cannot help. People ask if I would do it again and I answer no.

What we are thinking of doing next year when my son has finished school is to see if we can move, our house is worth between £185 to 195,000 and we owe our mortgage company £67,000 so that leaves us around £118 to £128,000 as a deposit on another house, we are looking at a house in the price range of £140 to £150,000 so we would need a mortgage for around £22 to £32,000, would this be possible on a repayment fixed rate and the kind of mortgage were you only pay interest on the amount that is out standing, they were known as an Australian mortgage but don’t know what they are called now..

HappyMJ

Current Account Mortgages. I still have one it's called the Virgin One Account...however, they don't sell them any more. Great product.

The closest you'll get now is an offset mortgage. The balance of your savings account offsets the interest payable on your mortgage. You save by not actually getting interest on your savings and therefore save tax.

How much do you and your partner earn from employment? How much from benefits? It's possible but as you're in a DMP it's unlikely and any rate you do get will be high.

ACG

You could just make overpayments on your current mortgage each month?

I think trying to get a £22k mortgage with a DMP is probably doable but there is not enough information. I think I would try and get my current mortgage down now by overpaying and see where you are when you come to move.

libf

As stated on your thread before, your situation is complex and you would be best engaging a broker to assess your circumstances.

[Deleted User]

OP - in addition to this thread and the one libf has linked to, you've also posted this twice previously.

I think the existing three threads provide with you as much of an answer as you're going to be able to get a public forum.

I've put the links below if you want to go back and revisit them.

https://forums.moneysavingexpert.com/discussion/comment/68558214#Comment_68558214

https://forums.moneysavingexpert.com/discussion/comment/68551697#Comment_68551697