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SECTION 106 - finding the IMPOSSIBLE mortgage!
nenil
Posts: 4 Newbie
We have planning permission on our own land for an affordable home with a section 106. We have done the ground works ourselves but need to take out finance to start the rest of the build, we need 80k.
The first route we where going to go down fell flat on its face - we where hoping to release the funds from another piece of land we own which has an existing mortgage on it which is approx a 3rd of the whole value of the land. We where hoping to release 140k to pay off the existing secured loan/mortgage and release enough to build the house but the valuation has come in way below what we where expecting (despite land in the same area infact the land OPPOSITE fetching up to 4k an acre just last year (over 2.5 x more than what ours is valued at) and our land has been valued exactly the same as it was 5 years ago despite lots of work and improvements made to it)- it has been disputed and we are currently waiting an outcome. At the moment we would be left with 18k not the 80k we where hoping for, nowhere near enough! so we are not holding our breath and trying to come up with other solutions.
However we have these obstacles to overcome:
1.We are both self employed
2. I have 2 x CCJs - however these have been on my credit file for now 9 years - they where 2 defaults due to be removed in the August of 2014, however in the june 2014 unknown to me they had turned into 2 CCJs. I was not aware at the time as correspondence had gone to my past address. So the same debt will have been on my account for 12 years. Other than the CCJs i have NO defaults a few credit accounts and store cards which are all paid and up to date and always have been, my partners credit is fine, no defaults or CCJs.
So we need to find the impossible! a mortgage for a section 106 with 2 self employed people and bad credit
We have looked into options and most high street lenders are out the question with the sec 106 nd my CCJs.
We are waiting a call from Build Store to see if they can help, the affordability is there after a quick chat . However i am not convinced we will get it due to my credit history.:(
Any bright ideas? Thank you
The first route we where going to go down fell flat on its face - we where hoping to release the funds from another piece of land we own which has an existing mortgage on it which is approx a 3rd of the whole value of the land. We where hoping to release 140k to pay off the existing secured loan/mortgage and release enough to build the house but the valuation has come in way below what we where expecting (despite land in the same area infact the land OPPOSITE fetching up to 4k an acre just last year (over 2.5 x more than what ours is valued at) and our land has been valued exactly the same as it was 5 years ago despite lots of work and improvements made to it)- it has been disputed and we are currently waiting an outcome. At the moment we would be left with 18k not the 80k we where hoping for, nowhere near enough! so we are not holding our breath and trying to come up with other solutions.
However we have these obstacles to overcome:
1.We are both self employed
2. I have 2 x CCJs - however these have been on my credit file for now 9 years - they where 2 defaults due to be removed in the August of 2014, however in the june 2014 unknown to me they had turned into 2 CCJs. I was not aware at the time as correspondence had gone to my past address. So the same debt will have been on my account for 12 years. Other than the CCJs i have NO defaults a few credit accounts and store cards which are all paid and up to date and always have been, my partners credit is fine, no defaults or CCJs.
So we need to find the impossible! a mortgage for a section 106 with 2 self employed people and bad credit
We have looked into options and most high street lenders are out the question with the sec 106 nd my CCJs.
We are waiting a call from Build Store to see if they can help, the affordability is there after a quick chat . However i am not convinced we will get it due to my credit history.:(
Any bright ideas? Thank you
0
Comments
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I have a similar case going through at the minute...your options are VERY limited and the rates will be higher than normal...between 6-10%.
I am 99% sure you will need a broker.I am a Mortgage AdviserYou 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 -
Did you try to get the CCJs set aside ?Changing the world, one sarcastic comment at a time.0
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No and wouldnt know where to start TBH ?0
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If the CCJ was at the wrong address and you could satisfy the debt or if you contest the debt then it's worth trying for a set aside and you effectively get a new CC hearing. Then if you win the hearing, or if you lose it and pay the debt, no CCJ. However I don't know if there's a timelimit on a set aside.
Google for 'set aside' ccj and 'wrong address' etcChanging the world, one sarcastic comment at a time.0
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