Mortgage but bad credit

Scunnycelt81

hi, we are currently in a debt arrangement scheme in Scotland and have been paying it back for 4 years on time no missed payments. We recently welcomed our 3rd child and the house we are in will soon be tight to say the least. We have lived here for over 6 years and our mortgage is outside theDAS. We have around 100-140k of equity in the house now as local house prices are high. If we sold our house the money we would get after mortgage would clear the DAS and allow a hefty chunk for a deposit on a new bigger house. However being in the DAS severely cripples our credit. Surely there must be a way to get out of this position -

Getting a new mortgage would be extremely costly and it seems unfair that we can’t get out of the position easily when the money is there in equity if we sell the house. Has anyone had a similar issue or knows of a way this could be resolved as it baffles me that we are still being punished when we have a way out by selling and buying a new house.

Isthisforreal99

Entering any debt managment plan comes with consequences. Why would a lender view you as an 'attractive customer' when you have a poor credit history - that fact cannot be disputed.

There will be options but more expensive than the norm, have you spoken to a broker.

RelievedSheff

You will need to speak to a broker that specializes in adverse cases.

If they could place you with a lender I don't expect you would be looking at great rates!!