Re-Mortgage with bad credit history

32_Briggsy

Due to no fault of my own I find myself with bad credit history, which only come to light last August.

Basically to cut a long story short, a family member has ran up debt in my name in the form of a loan and a credit card, by using a old bank account I didn't use. I disputed this with the bank as a act of fraud but because I allowed my uncle to use the bank many years ago to pay his wages in, I'm held responsible for this debt. I had the bank account closed and funds froze. He has missed payments on the loan and credit cards.

This debt was only found out when I tried to re-mortgage last August. I was declined by Halifax, which had myself and the Halifax employee amazed as my banking with them was immaculate, I hadn't missed a mortgage payment in 5 years. When I got home and checked my credit score, the shocking truth came to light. My credit score was 528 1/5 and very poor status.

I moved the credit card funds onto a 0% balance transfer account to manage the funds better. Unfortunately I had to have the loan placed onto a resolve affordability plan. My uncle is paying back £300 per month, for this debt , and he has done since last August. I just hope he keeps up with the repayments.

The current credit file status is 555 2/5 and status is poor. So this has improved slightly.

I'm having the property valued in the next couple of days and I'm going back into Halifax next Thursday, in the hope they will; give me funds for a re-mortgage. The reason for the re-mortgage is because me and my wife are separating and she is on the mortgage. I'm keeping the property. We've had the mortgage for approx. 5 years. Never missed one payment.

Current debt is:-

Loan £8,300. - Re-payments of £200 pm
Credit Card 4,500 - Repayments of £100 pm


Mortgage - £74,200 - Repayments of £417 pm.
Remaining Term - 19 Years 4 Month
Fixed rate of 2.84% unit 31st October 2018

I have personnel credit cards, but balances are at 0.

We believe the house to be worth approx. £125,000. So the ex will be due around £20-25k.

My salery income is £38,000.

If halifax reject me again. What other options do I have? I really don't want to sell the property.

Thanks

32_Briggsy

Update:-

I had an estate round to value the property this afternoon. He puts the house value at £150,000 to £155,000. Great news for the ex as she should be in for a decent return, not great for me as I'd prefer to buy her out rather than sell. I've got another estate agent coming Monday, before going into the Halifax again on Thursday.

32_Briggsy

Any advice ladies and gents?

Kind Regards

32_Briggsy

Ok so had the second valuation today and came back the same ball park figure at the first £150,000 to £155,000. I'm all set for the bank appointment on Thursday. I have a breakdown of my income and outgoings. I'm fully expecting to be rejected again. If i do, what are the chances been accepted for a re-mortgage on the high street and what are the anticipated interest rates i should expect?

Kind Regards

Thrugelmir

Unfortunately I had to have the loan placed onto a resolve affordability plan.

Hardly what a lender will wish to see when a greatly increased level of borrowing is applied for.

Sell the property. Clear your debts. Make a fresh start.

Appreciate that decisions aren't easy to make. The property will hold too much sentamentality. Once you are out on the other side. With the stress lifted. You'll be in a much better place.

32_Briggsy

Thanks for the input, I have considered this in my mind this week, but would almost certainly be the last option for me ideally.

32_Briggsy

So went into Halifax today and they would only borrow me 65% LTV which doesn't even cover the current £74,200 mortgage.

Seriously at the end of my tether as what to do next.. I really don't want to sell the property but its look more and more likely I may have to

Have I any other options? Would a high street lender consider me for borrowing?

ACG

There might be lenders who will consider you but not at the rates Halifax charge. It might be worth looking at a secured loan (second charge), I am sure a broker can help with this sort of thing.

32_Briggsy

Thanks for the info.

Can you briefly describe secured loan (second charge)? I would prefer to go down the broker route to get a re-mortgage even if it means a slightly higher interest charge, I just don't know where to start. Ideally I need this sorting and completed within the next couple of month max. The ex is starting to get a little impatient.

Basically the current mortgage is £74,200. The ex is looking to settle for around £35k. So I would be looking at a re-mortgage of £110k.

ACG

You keep your Mortgage with Halifax - or whatever they will lend you on your own. You at least keep that portion at a normal rate.
You then take out a secured loan for the difference, typically that will be at a higher rate - but when you average the 2 out, it may be cheaper than doing the full balance with an "adverse" lender.

32_Briggsy

I get you now. What are the chances of getting accepted for a secured loan of £35k with my current borrowing and credit rating? And can this secured loan be taken out over a longer duration say 15-20 years?