Adverse credit homeowner loan options

Singlemumjo

Hi

First time posting here so apologies if I’m posting in the wrong forum. I have adverse credit history for several reasons and I have just under £10k debt I would ideally like to consolidate. I’m in a very rare and extremely fortunate position where my parents have decided to sign the house I currently live in with my daughter over to me, so I will own the whole property which is worth approx £220,000. I currently own 1 third. The remaining 2 thirds will be signed over to me in the next month.

My annual income is £30k. How likely am I to be accepted for a secured loan with my adverse credit history once I have full ownership of the property? And can anybody recommend a lender. I’m really not sure what to do. Any advice would be much appreciated.

Thanks
Jo

DrEskimo

Consolidation is rarely the answer, and securing this debt on your house is not wise.

Your best bet is to address your spending and try to set up a strict budget to clear the debt as quickly as possible. Depending on how strict you want to be determines how much you can pay off and how long you have to be strict for.

You can post a SOA, and get feedback on where you can cut spending to try and clear the debts if you like.

http://www.stoozing.com/calculator/soa.php

Looking over your past few months direct debits and credit card statements will help you see where exactly your money is going, allowing you to make the necessary behavioural changes to clear these debts and stop accumulating more in the future.

Craig1981

agreed with the above - consolidation is rarely the answer, especially consolidating with a secured loan

from what i can understand, is that you will have no mortgage or rent payments once signed over? this is usually the largest chunk of someones expenditure... so with debt of 10k (relatively lowish), with a proper budget, you can get this cleared as is quite quickly (that is depending on your I&E)

as stated above, if you post a statement of affairs (SOA), people may be able to give you better and more in depth advice on what your best course of action would be

foxy-stoat

What is this adverse credit history you speak of?

What is the interest rates of the £10,000 debt, how did you get in debt and how much do you currently pay off?

To be honest, £30,000 income with zero rent or mortgage payments, you should be able to throw as much money as you can paying this off.