mortgage with poor credit

smnb08

hi i would be gratefull for any advice anyone has to offer me.
I currently have a mortgage with kensington and my fixed rate is due to come to an end in june.once this happens my mortgage repayments will be £960 on an £85000 mortgage(this is includeing mortgage arrears payment of £140 per month).
we would really love to move to a bigger house so my two daughters can have a room of there own(they constantly argue!!)
my house is worth approx £150,000 and once i paid my mortgage off would leave me with approx £65000.
i have around £10,000 of debt and would also like to keep back £5000 to swap my car!
This leaves me about £50,000 as a deposit on a house,here comes the problems!!!
my partner and i have got a bad credit history we have several defaults and i have about 3 ccj s 1 satisfied,1 nearly satisfied and 1 that i have just started paying.
as i said before i intend to pay off the debts and we would only have a mortgage to pay the problem is we need a mortgage of approx 4 times our income.
what are the chances of getting a mortgage 4x our income with that credit past???? i have looked on the charcol website as a lot of people on here seem to reccommend them but according to there calculator we could only borrow 3x our income.
with the mortgage payments going up and our other loan payments to pay we wouldnt be able to pay everything and live.
please can anyone offer me any advice xx

beecher

I'm no expert but if you're finding it hard to cope with the mortgage you have is it really a good idea to move to a bigger house?

smnb08

Thanks for reply beecher but i have thought long and hard about this. when my fixed rate ends in june i will be paying approx £1500 a month on mortgage and loans alone and i estimate the mortgage for the amount i want to borrow will be approx £900!!!im no expert either but that sounds a better deal to me and i get a bigger house in the process.

beecher

smnb08 wrote: »

Thanks for reply beecher but i have thought long and hard about this. when my fixed rate ends in june i will be paying approx £1500 a month on mortgage and loans alone and i estimate the mortgage for the amount i want to borrow will be approx £900!!!im no expert either but that sounds a better deal to me and i get a bigger house in the process.

I suppose you have to look at whether you're living beyond your means at the moment with your present mortgage, and whether you'd be able to not use credit if you upped your mortgage. You might clear your debts now, but then have to add to them again shortly afterwards?

Leon_W

You haven't allowed for buying and selling costs.Solicitors, agents etc. That'll be another 5-6K leaving you with £44,000.

With mortgage arrears, CCJs, defaults etc, in this market, you would be classed as heavy adverse (not a term I like, don't shoot the messenger !) and if you are able to get a mortgage at all it wouldn't surprise me to see the LTV (loan to value) severely restricted (maybe 65%) and even then, at a stupid rate. Any lender will also be cautious with income multiples.

I really have to agree with beecher. What lender in their right mind would want to lend you more than you owe now when it is plainly obvious that you handle credit poorly ?

smnb08

hi no need to think about moving costs as our my partners parents are covering the costs.plus my house will proberbly fetch more than £150,000 one over the road not in as good condition just sold for £162,000.

herbiesjp

and what are the new house prices you are looking at, along with your two incomes?

smnb08

hi the house price range we are looking at is between £175,000 and £180,000 our combined income is £36000.

Conrad

Lenders that allow adverse credit and higher income multiples are;

First National
TMW
Beacon
Platform (but they have less than £1bn to lend this year so will be very choosy)
BM Solutions


BM Solutions can be quite competetive and accepted someone I put to them with £90000 of defaults (registerd in the last 12 months) and just a 10% deposit.

smnb08

Thanks conrad that has made me feel better about the whole thing just what i was after a bit of POSITIVE advice xx

herbiesjp

smnb08 wrote: »

hi the house price range we are looking at is between £175,000 and £180,000 our combined income is £36000.

So you would be looking at just over 72% loan to value, and just over 3.6 times your joint income

The figures seem fine, you just need to find out which lenders will agree this for you and what that would translate into monthly mortgage payments for you