Releasing Equity Question

Acmt

Has anyone any advice on how to if I even can release equity from my Property? I have around £40K of equity in the Property but because I have loans/debts and a very poor credit history I wouldn't be able to apply for a fresh mortgage application. All my debt is controlled and being paid off each month. I have a decent salary of £25k per year but like I said my poor credit history seems to scupper anything I try.
Any advice???

ViolaLass

You could sell.

Acmt

ViolaLass wrote: »

You could sell.

Thanks for the reply but selling is not an option as my Parents live in the Property

hoops77

Second charge loan
Take a mortgage break

YHM

How bad is your credit history. Give us an overview...

Thrugelmir

Acmt wrote: »

selling is not an option as my Parents live in the Property

Adds complications. What's the arrangement?

Acmt

My Parents live in the Property both retired and just receive the state pension so selling and them moving is not an option.
Credit History very very poor, I have in total about £12k of Debt. £5K of that is very recent making month to month living very hard.
Mt Mortgage repayments are very small £169.51 so increasing these would be managble if I could pay off the £5K debt as these loans repayments make it a struggle month to month at the moment

Jenniefour

Then why not post on the Debt Free board and get some useful input about how to deal with your debts, adjust spending and so on. Consolidation (borrowing more to deal with past borrowing) is not always the best way forwards (especially with only 40k equity). It's not usually wise to turn unsecured debt into secured debt, as this increases the possible risk of your parents and yourself being made homeless.

You're earning a very decent salary and there will be other solutions.

Acmt

Thank you for the reply but I cannot see any other way of clearing the debts. My spending is all accounted for each month and nothing other than paying bills and repayments to my debts is used.


I know borrowing to pay debt off isn't always a good idea but the equity in the property is the only think I have going for me, every debt advice or charity I have spoken to hasn't been able to help. Like I said I don't spend anything other than bills, mortgage and debt repayments. If I could get £5K of equity to clear that part of debt I would be able to manage a higher mortgage repayment but with my credit history I cant apply for a fresh mortgage application to get the equity

Jenniefour wrote: »

Then why not post on the Debt Free board and get some useful input about how to deal with your debts, adjust spending and so on. Consolidation (borrowing more to deal with past borrowing) is not always the best way forwards (especially with only 40k equity). It's not usually wise to turn unsecured debt into secured debt, as this increases the possible risk of your parents and yourself being made homeless.

You're earning a very decent salary and there will be other solutions.

Jenniefour

Thanks for responding. Then I would give the same advice - post on the Debt Free board. Let the good folks over there see what they can come up with, they're used to helping people with difficult debt problems. Yes, it can be really hard to see a way forwards when you're in the midst of something, and you're worried. Give them a chance to help you, costs nothing.