Re-Mortgage with charge on property

swanseastu

HI We find ourselves in an annoying situation where we have landed a CCJ and charge on our property.

Short history, we have a £120k mortgage with Halifax on a property worth about £225k. We have paid this mortgage monthly for at least 2 years and have never missed a payment. We also renewed our mortgage to another fixed rate about 8 months ago with the same lender.

However during the time we have held this mortgage with have incurred a county court charge on the property after we stupidly got involved in a time share, took out a loan with the time share credit company (unsecured) and then found that the timeshare (or holiday club as it was sold) was totally misreprsented at point of sale. Bottom line we took them to court, lost as we could not afford a strong defence and now find ourselves in debt to the tune of about £12000, nothing to show for it and a CCJ against us, and also a charge on the property to that amount.

Thats the history and yes we are bitter, and will never ever ever be sucked in again with holdiay club or timeshare rubbish. We have agreed an £120 per month repayment plan with the credit company, but this will take forever to clear and we will have the ccj and charge against us. We dont intent to move from this property for a long long time....Now the future,

We have just got married, are looking to start a family soon and want to make some home improvements to the house, our ideal solution would be to re-mortgage and get an extra £30,000 and then pay off the charge debt on the property, and then carry out improvments on the house.

My question is, do you think this would be possible to get the funds to clear the outstanding debt through a re-mortgage? If not, any suggestions how we could get a sensible loan (secured) to pay off the debt,and hopefully refurbish at the same time bearing in mind the equity on the house? We would consider moving lenders and paying the early penalty if we could start to get ourselves back in order.

Thanks Stu

Any suggestions or help much appreciated

Jonbvn

Some questions:

What is the ERC on your fixed rate?
Is the 12k charge with interest or not?

swanseastu

Not sure of the answer to both of those - will check and get back to the forum tomorrow

silvercar

The first question is whether your income would justify a higher mortgage amount. If it would then it should be possible to take an increased mortgage to cover the debt.

Mr_helpful

If you can afford the remortgage you will need to get a deed of postponement for the second charge

regularsaver1

and sols fees