Require advice - am in a catch 22 situation

Vickula

Hi
After splitting with my ex-husband I managed to accumulate some debt whilst I found my feet.
As part of the divorce settlement it was agreed that I would get a lump sum from him once his name has been removed from the covenant on the matrimonial home. I live in the house and we both pay an equal share of the mortgage. The house has been on the market for over 2 years with little interest plus it needs work on it.
I have been refused lending from my current mortgage provider to have the property solely in my name because they wanted me to apply for the whole outstanding mortgage rather than what I needed to borrow once the lump sum had been transferred.
I approached other mortgage lenders but because of my bad credit score none would commit.
I have been on a DMP for 18 months - have just had a budget review and increased my payment.
The lump sum owed to me by my ex would clear half the mortgage. Taking into consideration the amounts of my current mortgage payment and DMP payment and judging by online mortgage calculators I can clearly afford the repayments for the amount I need to borrow to clear my debts and have the house transferred into my name.
Is it just the bad credit score, as I have 2 defaults recorded by creditors, that is putting lenders off??
Any advice on how to go about getting a mortgage with bad credit would be appreciated.
Thanks

Vickula

The estimated time the DMP would be clear by is 2020! Do I really have to wait that long?

Laurensalive

2020 is only five years away. I would personally slowly chip away at this debt. Stay with the DMP. As this would mean you can have a good standard of living. Important after a break up.

Vickula

I can't see how I can have a better standard of living while the house falls into disrepair because neither myself or my ex want to spend any money on it to benefit the other! So in the meantime Im living in a place with a leaky roof while his bank is sitting on my money!

Laurensalive

Sorry I did not know about the roof issue. This does need fixing. Its a difficult situation to be in. Did not mean to offend. Tell him if the roof and other things do not get fixed it may not be sold. Tell him to pay for the repairs, keep a total of money his has spent on repairs, tell him he will get the money back for the repairs when the house is sold.
I do not think my comments will help.

stephenni1971

And your ex still is liable for the mortgage on a house he no longer lives in!

You should just need to apply for the new mortgage for what you will need after you factor in the lump sum you are due and then that would be paid to the mortgage company a bit like you were putting down a cash deposit of your own by your ex's solicitor on completion.

But if you are in a DMP that still has five years to run before you are finished it's hardly a surprise that a mortgage company won't want to give you a new loan in your sole name is it?

Vickula

Why is that Stephanie?
Cant see why because the payments I am making for the mortgage and DMP at the moment are higher than what the repayments would be if I could remortgage and clear my DMP - I dont see what the lenders have got to lose?
Im in a more stable position now earning more than I was before I split with my ex so I really cant fathom it!
And no the current lenders were adamant that the lump sum could not be used as a deposit even after discussions with my solicitor!

TBeckett100

The fact the the new arrangement will be cheaper will not wash with the lender. The lender views you as high risk I.e you can't manage smaller debt amounts without reverting to a DMP. They aren't interested in the reasons. They run the risk of you defaulting on the mortgage and to be fair if they came and did a valuation tomorrow they may not offer a mortgage with a leaky roof.

The mortgage you have now was taken out under different circumstances and in their eyes you have kept to that agreement, they just wouldn't take you on now as a new customer and by being difficult will hope you derisk their mortgage book by taking your mortgage elsewhere

This isn't a judgmental post, but with "computers rule" underwriting, a logical cheaper arrangement cannot be allowed if the computer says no.

Vickula

Aaah - the ruled by robots scenario - Big Brother IS watching us after all!
:rotfl:

Fair enough Im stuck - no way out!

amnblog

Had can a lender assume you will make the payments regularly and on time whilst your history tells them the opposite. Even if you can afford it on paper that does not mean your will pay it.

Depending on the figures you may be able to re-mortgage with a specialised lender, receiving your cash sum and paying your ex off.

You need to consult a competent broker.

Vickula

And what makes a broker competent?