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Remortgaging bad credit

Droopyk
Droopyk Posts: 80 Forumite
Part of the Furniture 10 Posts Name Dropper Combo Breaker
in Mortgages & endowments
Hi all,

I've been trying to sell my flat for 13 months, fell through twice and now seriously stressing out.  I need the money to repay debts and to update my house ( new windows, kitchen, bathroom).


I can't get credit as my score is very poor, and fail on the affordability side due to my credit card debt. Its like I'm in a cycle I can't break. 

My credit card and loan debt total is around 22k

I owe about15k on the flat, value is around 87k and would appreciate any help in where to turn to next, as I'm seriously looking at those companies which buy your house quickly.

I should also add that the flat has a tenant in, but is on a rolling monthly contract.

Thanks in advance 

Karl
#95 1p challenge =£667.95 1p challenge=£667.95 Reverse 1p challenge=£667.95 Reverse 1p challenge=£667.95 £1 weekly challenge =£1378 £2 a day challenge=£730 £1 a day Xmas challenge=£365Mortgage £141k..... Looking to reduce by £15k by end of yearCredit cards#1 Barclaycard =£3500#2 Amex plat =£1700#3Amex b.a=£2200#4 M&S =£1800#5 Marbles=£2700#6 Debenhams=£1500#7 Tesco=£800Looking to clear at least 5 by end of year

Comments

  • K_S
    K_S Posts: 6,893 Forumite
    1,000 Posts Fourth Anniversary Photogenic Name Dropper
    @droopyk Is it a BTL mortgage and who's the current lender? What kind of 'bad-credit' do you have and how long ago?

    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.

  • Droopyk
    Droopyk Posts: 80 Forumite
    Part of the Furniture 10 Posts Name Dropper Combo Breaker
    @K_S yes it's a BLT mortgage with Skipton,and I've got missed payments on my file which I've caught up with, all in the last 18 months to 2 years

    #95 1p challenge =£667.95 1p challenge=£667.95 Reverse 1p challenge=£667.95 Reverse 1p challenge=£667.95 £1 weekly challenge =£1378 £2 a day challenge=£730 £1 a day Xmas challenge=£365Mortgage £141k..... Looking to reduce by £15k by end of yearCredit cards#1 Barclaycard =£3500#2 Amex plat =£1700#3Amex b.a=£2200#4 M&S =£1800#5 Marbles=£2700#6 Debenhams=£1500#7 Tesco=£800Looking to clear at least 5 by end of year
  • K_S
    K_S Posts: 6,893 Forumite
    1,000 Posts Fourth Anniversary Photogenic Name Dropper
    edited 5 January 2022 at 6:33PM
    @droopyk It looks like you have 18 months of clear credit history, are an owner-occupier, experienced landlord and are looking to do a capital-raise remortgage for up to 75% LTV on a flat valued at 87k with a paying tenant.

    Based on the limited info above, it looks fairly straightforward, though that will depend on the specifics of the missed-payment markers, any prior credit issues, the specifics of the flat and your income (for qualification purposes only, not affordability).

    Afaik, Skipton doesn't allow capital raise for debt-con on BTL, so you are probably best off approaching a mortgage broker for options. The MSE guidance can point you in that direction https://www.moneysavingexpert.com/mortgages/best-mortgages-cashback/#step3

    Having said that, if you're looking to sell in the short term, it likely does not make a lot of sense to remortgage at this point and potentially incur additional costs and/or enter into a mortgage fix.

    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.

  • sammyjammy
    sammyjammy Posts: 7,994 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    You'd have a much better chance of selling your flat with vacant possession, your only other option is to reduce the price so its attractive to a landlord, no need to go with a buy your house quick company, total rip off.
    "You've been reading SOS when it's just your clock reading 5:05 "
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