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Secured loan with extremely poor credit

debt12021
debt12021 Posts: 5 Forumite
Name Dropper First Post
in Mortgages & endowments
Hi,

I have had a considerable amount of missed payments / arrears in the last 12 months but everything is up-to-date now and my score has been climbing. I know I will not get approved for anything for next 18 months but was wondering if I could get a secured loan using collateral to buy a property worth £130,000?

I have no defaults, CCJ's or anything else like that.

I have two properties that are worth altogether around £125k and I own them outright.

My income altogether is around £40,000 a year.

Any tips please?

Comments

  • K_S
    K_S Posts: 6,908 Forumite
    Fifth Anniversary 1,000 Posts Photogenic Name Dropper
    @debt12021 Are the two background properties buy-to-lets? Or is one of them your current residence?

    I am a Mortgage Adviser - You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. 

    PLEASE DO NOT SEND PMs asking for one-to-one-advice, or representation.

  • debt12021
    debt12021 Posts: 5 Forumite
    Name Dropper First Post
    K_S said:
    @debt12021 Are the two background properties buy-to-lets? Or is one of them your current residence?
    I am currently living with my parents but the new property I am buying will be the one I live in.
  • debt12021
    debt12021 Posts: 5 Forumite
    Name Dropper First Post
    debt12021 said:
    K_S said:
    @debt12021 Are the two background properties buy-to-lets? Or is one of them your current residence?
    I am currently living with my parents but the new property I am buying will be the one I live in.
    Both of my properties are buy-to-lets 
  • K_S
    K_S Posts: 6,908 Forumite
    Fifth Anniversary 1,000 Posts Photogenic Name Dropper
    @debt1021 Well with 2 unencumbered BTLs worth a combined 125k, 40k income and no defaults/CCJs, you should have options to release some equity from your BTLs and get a residential mortgage on the rest. Even with the recent arrears.

    I am a Mortgage Adviser - You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. 

    PLEASE DO NOT SEND PMs asking for one-to-one-advice, or representation.

  • DCFC79
    DCFC79 Posts: 40,644 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    HeatherParr said:
    I tottay agree with you
    Why do you agree Heather ?
  • sourcrates
    sourcrates Posts: 32,479 Ambassador
    Part of the Furniture 10,000 Posts I've been Money Tipped! Name Dropper
    DCFC79 said:
    HeatherParr said:
    I tottay agree with you
    Why do you agree Heather ?
    I doubt she will tell you, postbot I suspect.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • debt12021
    debt12021 Posts: 5 Forumite
    Name Dropper First Post
    K_S said:
    @debt1021 Well with 2 unencumbered BTLs worth a combined 125k, 40k income and no defaults/CCJs, you should have options to release some equity from your BTLs and get a residential mortgage on the rest. Even with the recent arrears.
    Many thanks for your reply mate.

    The arrears/missed payments were quite a large numerous amount & were across several credit cards but there was strictly no default/CCJ's.

    But everything is up-to-date now, when talking to a mortgage broker, what shall I explain to them about wanting mortgage with my current situation using the two properties as collateral/releasing some equity?
  • K_S
    K_S Posts: 6,908 Forumite
    Fifth Anniversary 1,000 Posts Photogenic Name Dropper
    debt12021 said:
    K_S said:
    @debt1021 Well with 2 unencumbered BTLs worth a combined 125k, 40k income and no defaults/CCJs, you should have options to release some equity from your BTLs and get a residential mortgage on the rest. Even with the recent arrears.
    Many thanks for your reply mate.

    The arrears/missed payments were quite a large numerous amount & were across several credit cards but there was strictly no default/CCJ's.

    But everything is up-to-date now, when talking to a mortgage broker, what shall I explain to them about wanting mortgage with my current situation using the two properties as collateral/releasing some equity?
    @debt12021 Just pretty much what you explained in the posts above. I would recommend using an experienced broker though, as there's likely a couple of different ways to do this and with multiple recent arrears, you're probably looking at specialist lenders both at the BTL end and the residential purchase.

    I am a Mortgage Adviser - You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. 

    PLEASE DO NOT SEND PMs asking for one-to-one-advice, or representation.

  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Do you have a deposit saved?  On an income of £40k pa and living at home should be straightforward. Or are you burdened with a high level of unsecured debt / car lease etc? 
  • debt12021
    debt12021 Posts: 5 Forumite
    Name Dropper First Post
    Thrugelmir said:
    Do you have a deposit saved?  On an income of £40k pa and living at home should be straightforward. Or are you burdened with a high level of unsecured debt / car lease etc? 
    I do have some money but I made some mistakes in past few months and have had missed payments on my unsecured debt.

    I have 6-7 credit cards that are all £0 balance now and have no other expenses other than getting some food from time to time.

    I am saving a lot more now and my main priority is to save, and buy property going forward.

    The only reason it isn't straight forward is because of my mistakes - i've had them missed payments but i've never escalated it to being a default/ccj
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