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Any advice re getting a mortgage please
getinmyselfoutadebt
Posts: 81 Forumite
Hi we currently have 15k of debt and 42k equity in our home. The house is too small we need to move.
5k is in my name on a dmp since 2009. Defaults are from 2011-2012 apart from one for £200 which didnt default until 2015.
The other 10k in husbands name. One default of 2k as we disputed vanquis interest rate, they passed it to dca and defaulted it jan 16.
Is there any mortgage which would consider us? We need to clear the debts of 15k and use remainder of equity to buy again.
I know we dont have much chance but does anyone know if we have a chance at all. We can get a suitable property for 130-150k. Thank you
5k is in my name on a dmp since 2009. Defaults are from 2011-2012 apart from one for £200 which didnt default until 2015.
The other 10k in husbands name. One default of 2k as we disputed vanquis interest rate, they passed it to dca and defaulted it jan 16.
Is there any mortgage which would consider us? We need to clear the debts of 15k and use remainder of equity to buy again.
I know we dont have much chance but does anyone know if we have a chance at all. We can get a suitable property for 130-150k. Thank you
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Comments
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There's no painless solutions. Have you considered selling the property. Clearing your debts entirely. Then rebuilding your credit profile. Renting while you do so.0
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This is one of the posts when you look at it you want to hit your palm off your face, I don't mean to be cruel but put yourself in a lenders position would you lend money to someone with the profile outlined in OP?I am a Mortgage & Protection Broker
MSE doesn't check my status so you have to take my word for it. Any information posted is for discussion only and should not be seen as advice. I am FCA Registered, registration details available on request.0 -
Have you thought about extending rather than moving?I am a Mortgage Adviser
You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
I would lower your purchase price on the next place, rather than using too much equity from your home to clear unsecured debt, or work towards clearing down more of your debt before looking to move.
Oh and please address the reasons why your in this much debt and using equity doesnt solve the issue as you may well be back in the same position in a few years.0 -
MortgageMamma wrote: »Have you thought about extending rather than moving?
They won't be able to borrow any more money to extend.0 -
I am a Mortgage & Protection Broker
MSE doesn't check my status so you have to take my word for it. Any information posted is for discussion only and should not be seen as advice. I am FCA Registered, registration details available on request.0 -
foxy-stoat wrote: »They won't be able to borrow any more money to extend.
You can't say that unless you've done a full fact find and have all their details in front of you. They could look at a full remortgage or a second charge if the LTV is tight.I am a Mortgage Adviser
You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
I'm no expert on the mortgage market but I do know that it's extremely hard to get a decent mortgage, if any when you have recent defaults showing on your credit file. IF you do get another mortgage, the chances are it will be with a sub prime lender and then your mortgage payments are pretty likely to increase from what they currently are. You haven't mentioned your circumstances but I would sit tight, be grateful that you have a home and work hard to sort out your existing debts.
From experience, when you have to face the reality of debts and deal with them, it makes you more frugal and aware of the seriousness of managing your money. If you had a Vanquis card then I suspect this is not the first time money has been an issue. I promise I'm not judging but I would deal the problem rather than just shifting it to the side and starting again.0 -
Thrugelmir wrote: »There's no painless solutions. Have you considered selling the property. Clearing your debts entirely. Then rebuilding your credit profile. Renting while you do so.
Thanks yes we have and this is an option.0 -
MortgageMamma wrote: »Have you thought about extending rather than moving?
Thanks theres not room to extend0
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