Releasing equity in house with ccj and self employed.

Seant83

Hi.

I've gotten myself in to a bit of debt over the last few years and have decimated my once good credit score.

I've gained CCJs too and am currently coming out of a real bad 2 year period of my life. Luckily just about still owning a house and a semi successful business.

Work is good and I can afford the payments I've just fell behind in a lot and have threats of solicitor action etc.

I have around 100k left on a mortgage with the house valued by the mortgage lender as 150k.

Is there any way to release some of this equity whilst I still have bad credit rating and also ccjs?

Going forward payments are no issue I have just had a really bad few year and a lot of changes in personal circumstances, relationships etc. 

Any advice would be great.

Thank you all.

sourcrates

Best advice anyone can give you is to not turn unsecured debt into secured, if you have another  "real bad 2 year period of your life", it could result in the loss of your home.

Ignore your fictional credit score, make arrangements to repay what`s owed at a reduced amount, over a longer period of time, so that its affordable.

Equity release/re-mortgage/consolidation whatever you want to call it, never works for the majority of people, and can be just the next stepping stone to bankruptcy, think about that.

ManyWays

You could probably get a secured loan but it would be at a horrible rate of interest. Don't put your house at risk with this,

EssexHebridean

You're not clear on what you want the released equity for - but like others I'm assuming you are looking to clear debt with it. As others have said - this is an appallingly bad idea - "bad years" can come along at any time, and for all sorts of reasons - putting the very roof over your head at risk would certainly be a "bad year" I'd suggest. 

Firs things first - put together an SOA - Statement of Affairs. This should detail precisely what your outgoings are including what you're paying on the debts. That will clarify whether you can, as you think, meet the payments. On the CCJ's, make sure you pay the amounts specified by the court. On everything else 9as long as it is all unsecured borrowing), you can either carry on clearing them and also chip away at any arrears - the hassle you're getting from lenders will likely ease when they can see you're paying, even if slowly. Alternatively stop paying them altogether until they default, then offer them an amount you CAN afford each month. 

It sounds like things are improving now for you - in which case I'd suggest reinstating the correct monthly payment for each debt, and using any surplus to pay a lump each month off - starting with the one which has the highest interest rate.