Mortgage but bad credit

MortgageQueries

My mortgage is due for renewal in 3 months time. I am concerned that it will show that I have bad credit as 2 years after we bought our house, I was made redundant and could not find a job with the same salary for another 3 to 4 months, I had lesser income jobs but these did not cover all of my monthly bills. During those months, I took out an overdraft of £1,200 and also used my credit card, with a total bill of £2,500. So I owed a total of £3,700.

I have only just paid all of this off and have total savings of £1,500.

We have never missed a mortgage payment and have had a fixed rate mortgage for 5 years. Due to the above with having a large credit card bill and an overdraft. Would the bank we have our mortgage with deny me renewing our mortgage because I have had a large overdraft and credit card bill? Or would this not be taken into consideration as we have always met our mortgage repayments?

If the bank do not allow me to renew my mortgage, would we continue on their variable rate? or would I have to sell my house? I do not know enough about this and I am starting to panic as the renewal date is drawing closer.

Any help would be appreciated, thank you.

ACG

Having debt is not an issue. It is only if you are missing payments, have you missed any payments on anything?

Usually lenders would allow you switch products without any credit checks so long as they have retention deals available and you are up to date with your payments in the mortgage.

Tomg84

You might want to have a look at your credit file. You can look at them for free usually and there's a moneysavirngexpert guide. That way you can see how many missed / late payments are showing.

Ganga

MortgageQueries wrote: »

My mortgage is due for renewal in 3 months time. I am concerned that it will show that I have bad credit as 2 years after we bought our house, I was made redundant and could not find a job with the same salary for another 3 to 4 months, I had lesser income jobs but these did not cover all of my monthly bills. During those months, I took out an overdraft of £1,200 and also used my credit card, with a total bill of £2,500. So I owed a total of £3,700.

I have only just paid all of this off and have total savings of £1,500.

We have never missed a mortgage payment and have had a fixed rate mortgage for 5 years. Due to the above with having a large credit card bill and an overdraft. Would the bank we have our mortgage with deny me renewing our mortgage because I have had a large overdraft and credit card bill? Or would this not be taken into consideration as we have always met our mortgage repayments?

If the bank do not allow me to renew my mortgage, would we continue on their variable rate? or would I have to sell my house? I do not know enough about this and I am starting to panic as the renewal date is drawing closer.

Any help would be appreciated, thank you.

i do not know about your morgage but well done on clearing your debt and having savings!:T