closed thread

misslissa

closed thread

ACG

Having debt does not mean you have bad credit. It only becomes bad credit if you are missing payments. 

Speak to Natwest. You will probably fail the credit check, but put in an appeal. Explain you will be reducing your debt and if you will be reducing the mortgage that also, so the risk is actually lower to them. They do not have to do it, but I think you could argue it through. 

K_S

misslissa said:

Hi, we are considering moving house to pay off a lot of debt and possibly reduce mortgage too.

Currently with natwest on fixed rate until 2027. I am now self employed so I'm assuming we wouldn't pass affordability, couple that with the debt and I'm thinking we are basically locked in where we are for the foreseeable. Unless anyone knows otherwise?

@misslissa What ACG said, being self-employed or having debt in the background is not bad/adverse credit. 

Depending on the details, being newly self employed may indeed be a hurdle BUT lenders can often show a LOT of flexibility/discretion when porting, and especially so when you're not increasing borrowing. 

So there's no harm at all in speaking to NatWest and seeing what they say.

Like most mainstream lenders, NatWest allows brokers to do porting so if you have a broker that you trust to do a good job (or can get a recommendation from friends/family/colleagues) then consider using them. I normally do point people with straightforward cases to the volume brokers on the MSE guide but in this case you probably need someone that has the time to spend on to and fro with the lender to try get this through. Good luck!

ACG

Just a thought, but you could potentially look at doing a secured loan. It consolidates the debts, allows you to pay them off over a longer period. 

It might be cheaper than paying legal fees and stamp duty and everything else with moving home. 

Just a thought. But you are also securing the debt against your home so not ideal if you are likely to run up debt further or it wont actually free up enough each month for you to keep on top of them in future. 

kingstreet

FWIW NatWest isn't great with lots of credit even where it's being repaid. Large balloon payment PCPs appear to give them (and Halifax) a major headache. We've ended up using another lender several times in such circumstances.

misslissa

ACG said:

Just a thought, but you could potentially look at doing a secured loan. It consolidates the debts, allows you to pay them off over a longer period. 

It might be cheaper than paying legal fees and stamp duty and everything else with moving home. 

Just a thought. But you are also securing the debt against your home so not ideal if you are likely to run up debt further or it wont actually free up enough each month for you to keep on top of them in future. 

We tried but went through the whole process then at final hurdle it was refused 

ACG

misslissa said:

ACG said:

Just a thought, but you could potentially look at doing a secured loan. It consolidates the debts, allows you to pay them off over a longer period. 

It might be cheaper than paying legal fees and stamp duty and everything else with moving home. 

Just a thought. But you are also securing the debt against your home so not ideal if you are likely to run up debt further or it wont actually free up enough each month for you to keep on top of them in future. 

We tried but went through the whole process then at final hurdle it was refused 

Did you speak to a broker?