Advice needed, have morgage but bad credit looking to sell......

Holliesteph

Hello everyone!


I am new here and looking some advice please.


We bought our house 9 years ago, since then we have gotten into some debt since having a baby who was born prematurely and was quite ill, i had to go onto matenity leave earlier than expected and this had a knock on effect financially.


So both our credit ratings are not wonderful. We dont have any bankrupcy or court issues, just late payments on a few loans that we are working to pay back at the moment. However we want to put a plan into place to sell our house and upsize. we both have a good incomes so we wanted to know how it sits applying for a new morgage? do we need to go and see a finanical advisor to put a plan in place? has anyone any personal experience of this?


Sorry for the long post, any advice would be most welcomed! thank you in advance!

Lioness_Twinkletoes

Holliesteph wrote: »

Hello everyone!


I am new here and looking some advice please.


We bought our house 9 years ago, since then we have gotten into some debt since having a baby who was born prematurely and was quite ill, i had to go onto matenity leave earlier than expected and this had a knock on effect financially.


So both our credit ratings are not wonderful. We dont have any bankrupcy or court issues, just late payments on a few loans that we are working to pay back at the moment. However we want to put a plan into place to sell our house and upsize. we both have a good incomes so we wanted to know how it sits applying for a new morgage? do we need to go and see a finanical advisor to put a plan in place? has anyone any personal experience of this?


Sorry for the long post, any advice would be most welcomed! thank you in advance!

Concentrate on using your good incomes to get your finances in order. Catch up with the late payments and get your loan agreements back in order - then consider looking for a new (bigger?) mortgage.


In the meantime, check that the late payments have not been registered as a default on your credit file. If they have, getting another mortgage might be harder and you may have to pay a higher APR. A decent mortgage broker would be able to advise.

ST1991

Do you know how much equity you would have to use towards a new home?

You can get a mortgage with bad credit, although i'm aware that interest rates are higher and you need a large deposit. If you already have a large deposit to come from equity you may be OK?

As the above poster recommends, i would get your debts in order first though. That probably isn't what you want to hear... but it will benefit you more in the long term, and if you currently own your home and can afford the bills it isn't going anywhere. You could be looking for a new home for 2 years before finding the right one, so spend some time getting your credit in order first and a new home will be all that much better when you move in

[Deleted User]

To have problems with debts, you not only need 'bad luck' quite often, you also need 'bad financial decisions'. Now you are looking at upsizing before you've even sorted out the finances. This is the sort of thing that leads to shovels and bigger holes.

Another post saying look at your finances before looking at upsizing. You could post on the debt free board to help you straighten out your finances. There could be things that you are doing that could be changed to improve your mortgage situation in the short, medium and long term.