Looking for advice buying/sell/credit rating

gowfer

Hi.

I'm looking some advice with both mortgage and credit ratings possibly as well.


In August 2007 I bought my first house at peak to housing market with 100% mortgage and interest only. In 2011 I entered into a trust deed due o a few different issues. As of April 2015 I was signed out of my trust deed. Now due to family size we are badly needing to move house in next few years. I do not have a bank account and my fianc! has control of our finances.

Ideally we will be looking to move in next 2 years. In December 2017 we will have shares payment of around 15k and 3/4K of savings. At this point the house we will be living in will prob be worth 75k with approx £83k still to pay on mortgage. Having looked at houses our budget for next house will prob be 140/150k with mortgage of around £600pm. Our wages combined are 40k approx.

What is the best way to
A get my credit rating up to be best placed to be accepted for a mortgage
B what happens with it being a chain sale if my house is worth less than my original mortgage. Am I best selling house and clearing off balance before getting new house mortgage?
C is it s viable option to rent out the original house as mortgage payments would be considerably lower than what would be incoming as rent if we had someone in.

Will prob look at paying for financial advice butt though I would try on here first as had plenty good info from these forums previously.

Any info or contacts in Scotland Glasgow area would be much appreciated or if there is any more information I am needed to give to help me get more advice.

Thanks

newtothis141414

I can help a little with A)

- get on the electoral register if you're not already on it
- show lenders you can borrow responsibly. You say you don't have a bank account. You've not said why not, there may be reasons why you can't. But If you can get one, you should. Get a credit card, and spend on it, but make sure to pay it off. So let's say your fianc! normally pays a grocery shop, you do it instead and pay by cc. Then pay off the balance each month.
- I'm not sure about how the trust deed would affect your credit score. Have you looked at your credit report? That's a good starting point to fix any issues on there.

As far as the other points are concerned, I can't offer much help. If you rly on the the sale of the current property as a means to fund the new one (it doesn't sound like you are planning on that) I'd say it puts you in a weaker position. I'd leave it out of the chain if you can. Whether or not you can rent it out is something to discuss with your lender. I suspect you can't, because it's an interest only mortgage and held in a trust deed. You might be able to remortgage to a buy to let, providing there is enough equity in it. This is something you should explore with the help of a financial adviser possibly. I'd definitely recommend you seek help from someone qualified to help you through this.

Tonia_Bond

I would prefer selling because it is more beneficial than any others . You can refer article in northtechwindows for more money investment during selling. Buying may not be successful all the time. But if you sell with proper maintenance and upgradation, you'll get paid off well.

AnotherJoe

newtothis141414 wrote: »

I can help a little with A)

- get on the electoral register if you're not already on it
- show lenders you can borrow responsibly. You say you don't have a bank account. You've not said why not, there may be reasons why you can't. But If you can get one, you should. Get a credit card, and spend on it, but make sure to pay it off. So let's say your fianc! normally pays a grocery shop, you do it instead and pay by cc. Then pay off the balance each month.
- I'm not sure about how the trust deed would affect your credit score. Have you looked at your credit report? That's a good starting point to fix any issues on there.

As far as the other points are concerned, I can't offer much help. Indeed. If you rely on the the sale of the current property as a means to fund the new one (it doesn't sound like you are planning on that) since its negative equity, no they cant do that !!!

I'd say it puts you in a weaker position. I'd leave it out of the chain if you can. And pay the extra SDLT? Whether or not you can rent it out is something to discuss with your lender. I suspect you can't, because it's an interest only mortgage and held in a trust deed. You might be able to remortgage to a buy to let, providing there is enough equity in it. There is NEGATIVE equity ! This is something you should explore with the help of a financial adviser possibly. I'd definitely recommend you seek help from someone qualified to help you through this.

Who would hopefully tell them to ignore any suggestions about someone who doesn't even have a credit card and is in negative equity becoming a landlord? :eek:

OP, you can sell your house and clear the negative equity at the same time you buy another, have you factored that cost of around £8k in? Speaking to a broker your best bet, they may recommend you pay off the rough amount of negative equity now, to keep things simpler.