remortage advice please

Spudsmum_2

I would like to have some advice please!!!

I would like to extend my current house and would prefer to put this on my mortgage. I have had the same mortgage for 13 almost 14 years and have about 11 years left to go maybe. I would like to have advice I was in a Debt Management plan which we completed Jan 2015. During the 7 year plan I received a CCJ and when checkng clearscore none of these are now listed....My existng mortgage application for more monies asks if ever had a CCJ ....so I need to know how to answer this?
My property is worth £161k existing mortgage is £101k or slightly less now, repayment mortgage and guess amount to extend will be £25k.

Any advice or should I not bother as will be rejected? Would I be better trying to get a personal loan? I do not want to really make my mortgage last much longer either! Did debate even moving house but cheapest house would be £220k - £250k so that put me off somewhat!!!

Any advice would be really appreciated. Please be kind also!!!

Spudsmum_2

Forgot to mention also have a Paragon secured loan that has just under 5 years left! Would love to get rid of this and really wish had never ever ever taken out!!! Really bad advise at the time!

MortgageMamma

Hi Spudsmum

You should answer the CCJ question as yes. Some lenders, even mainstream lenders will accept historic CCJs anyhow so its best to be honest. Have you repaid the CCJ or did you leave it?

It may be prudent to speak with a professional mortgage adviser as the debt management plan could present you with obstacles even though you have now finished it.

Edit - just seen the bit about the secured loan. How much do you owe on that?

Spudsmum_2

CCJ paid up in full and before time too!

DMP paid up in full again before anticpated too.

Secured loans is about £!6 k but stacked with horrific interest rates....Absolute sods like I said really bad advice so if you can think of a wau=y of getting rid please share. Would love to get rid as they are evil!!!

Just want to know if should try or if should just forget trying to extend etc...

MortgageMamma

You need someone to look over the figures. Is it £16k or £6k the secured loan as there is a typo in your post. Are you managing the payments ok on the secured loan? you could consider consolidating it in your mortgage. How long ago did you take it? is that where you get your property valuation from or have you recently had it valued?

Spudsmum_2

£16 k would happily add to mortgage if even possible ....took out over a 15 year period and just done 10 years in Feb 2016. I am going on Zoopla figures for house value currently as not sure what to do about a valuation as not sure to do it or put idea to bed .....

Spudsmum_2

Everything up to date although was mishap in January with bank and a payment which was immediately rectified

MortgageMamma

HI the first thing you need to do is get a settlement figure for you secured loan, as it will probably differ from what you think you owe. It can take a couple of weeks for them to come so do that as soon as you can.

You then need to enquire about your mortgage. Are you on a fixed or other type of rate with early repayment charges or paying your lenders standard variable rate? This is an important part of working out how much you need to borrow in total.

A local estate agent will come out and value your property if you pretend you want to sell, you can get them to do this for free without obligation. If you can, ask a two or three to value your home and then plump for the middle figure or an average.

Once you have done that you need to work out how much equity is in your property, which is the remaining sum of the valuation once the secured loan and existing mortgage has paid off. Of that you will need to see if there is enough for your extension project, as well as leaving say 10% equity which is the minimum you need to have to get a remortgage.

It may also be a good idea to get a few contractors in to assess what you want to do to your home and give you quotes for the work.

You need to do all this to get the ball rolling towards your extension. As well as this you need an affordability assessment and to find a new lender or perhaps see what products your existing lender would offer you (if any). This is best done by taking advice from a whole of market mortgage adviser.

Spudsmum_2

Just done a noodle check and I am credt rated as 1 out of 5 so guess that I now need to shelf all ideas and try and build some credit somehow. I am so frightened by cards etc now and worked so hard to be as debt free as I could be except for secured loan. So desperately want to be mortgage and debt free but also would like to give my kids just a bit more space!!! Any recommendations on how to build credit....
Would it be different if I approached my current mortgage provider? I have not missed a single payment would they take that into account? Earnings wise hubbie brings home £2850 per month and I bring home £1106. Any recommendations/thoughts.....

dimbo61

Speak to a mortgage broker in your area as they will do a full breakdown of your income and debts and can check your credit reports and may know a lender who can help

MortgageMamma

Spudsmum wrote: »

Just done a noodle check and I am credt rated as 1 out of 5 so guess that I now need to shelf all ideas and try and build some credit somehow. I am so frightened by cards etc now and worked so hard to be as debt free as I could be except for secured loan. So desperately want to be mortgage and debt free but also would like to give my kids just a bit more space!!! Any recommendations on how to build credit....
Would it be different if I approached my current mortgage provider? I have not missed a single payment would they take that into account? Earnings wise hubbie brings home £2850 per month and I bring home £1106. Any recommendations/thoughts.....

The credit score itself will have little affect on your ability to get a mortgage. any defaults, CCJs, missed payments, IVAs, bankruptcies etc - they are the things that really count what a lender will look for.

It is not impossible for you to get a mortgage, do not write yourself off or your idea off so quickly. Your situation is not straightforward but it isn't rocket science for a broker - what is your husbands credit like? is he on the mortgage with you also? Why do you think your score is so low is it due to late payments or do you just not have very much credit?