Downsizing but with poor credit.

elljay

As a renter I don't know much about mortgages but would like to point a friend in the right direction.

She has recently split with long-term partner, 1 child. He is not on the house deeds/mortgage etc as she already owned it before he came on the scene, so he has been paying her rent. She no longer needs such a big house so is starting to think about downsizing to a 2 bed. This is where it gets outside my understanding.

She has a mortgage which she can pay fine on her own from her salary. However she has poor credit including 2 old ccjs and I believe there is also an old charge on the house - not massive but I'm not sure of the details. She thinks there might be some equity as she has lived there a while.

If she found a smaller house, what are the chances of getting a mortgage on it? Or is her current provider the best bet and she can just move the mortgage across as they know she is a regular payer. Dos it even work like this? She hasn't taken any advice as she's sure she won't get a mortgage so is thinking she'll just stick it out in a house that's too big.

How can I advise her please? Thanks

EJ

silverwhistle

There are always costs in moving house. Could she take in a lodger for a year or two?

ACG

With no actual facts or figures it is very difficult to say. I would suggest speaking to a broker, they can get all of the details on paper and look at the credit report and give quite specific advice.

Hungary971

I had very similar issues and we managed to move using precise as a lender two years down line we are now remortgaging using a main stream lender. It depends how much she owes and what property is worth

Thrugelmir

Worth speaking to the existing lender. As there is now a duty of care towards customers. Obtain the full facts in order that the matter can be discussed with complete transparency.