Adverse credit mortgage/loan

panda_bear_2

Hello, this is my first post! I hope someone can help as my partner and I have got a worrying dilemma.. its a long story about 3 years ago my partner bought a house on a buy to let mortgage with Northern Rock which we intended to rent out. At the time we were living in a local authority house after we had both got divorced and bought this property as an investment for the future..

We have both had bad credit in the past due to marriage breakups etc and thought we were doing the right thing. We had some tenants in short term (friends) however since then we havent been able to let the property due to major repairs needing to be done eg roof leaking, boiler not working properly, shower not working, bathroom needs replacing etc.. So until the end of last year we were paying the mortgage on the property plus the rent on where we were living. We did miss a few mortgage payments but then paid extra to make them up. Eventually we lost part of our income and realised we couldn't sustain keeping two houses.

We then moved into the mortgaged property supposedly to renovate it, however the work required is so major it would take years to save up to pay for it all. We have just tried to get a secured loan on the property to pay for the work but have learned today that it has been declined due to our mortgage arrears (obviously our bad credit rating didnt help either even though we applied to a company who accept people with bad credit ratings).

We are therefore stuck in that we cant rent out the house in this state but cant afford to do it up. Ideally we would like to re-mortgage the house and stay in it ourselves but I dont think we would get another mortgage... the fact our current mortgage is with Northern Rock is a major worry as well as the payments have just gone up, although we can afford the payments I worry that they will just go up and up.

I know it would make sense to just sell up but I would like to keep the house if possible.. can anyone give me any ideas? We are really panicking and to be honest it is making us ill.

panda_bear_2

anyone please give us any ideas?

Benefits_Blagger

so you were living in a council house while letting out a BTL property, i heard it all now.

no wonder northern rock is in such trouble!

chappers

Benefits_Blagger wrote: »

so you were living in a council house while letting out a BTL property, i heard it all now.

Now where have we heard this before...Oh yes the bloke who has £100K in the bank but blags off the state.

panda_bear_2

I had to live in a council house (for 3 years) as I have a disabled child and had to live in an adapted property and I was a single parent at the time. I was living there when I met my partner. I have always worked. Not that I need to explain myself to anyone. I thought this was a place to ask for help. obviously not.

Generali

panda_bear wrote: »

Hello, this is my first post! I hope someone can help as my partner and I have got a worrying dilemma.. its a long story about 3 years ago my partner bought a house on a buy to let mortgage with Northern Rock which we intended to rent out. At the time we were living in a local authority house after we had both got divorced and bought this property as an investment for the future..

We have both had bad credit in the past due to marriage breakups etc and thought we were doing the right thing. We had some tenants in short term (friends) however since then we havent been able to let the property due to major repairs needing to be done eg roof leaking, boiler not working properly, shower not working, bathroom needs replacing etc.. So until the end of last year we were paying the mortgage on the property plus the rent on where we were living. We did miss a few mortgage payments but then paid extra to make them up. Eventually we lost part of our income and realised we couldn't sustain keeping two houses.

We then moved into the mortgaged property supposedly to renovate it, however the work required is so major it would take years to save up to pay for it all. We have just tried to get a secured loan on the property to pay for the work but have learned today that it has been declined due to our mortgage arrears (obviously our bad credit rating didnt help either even though we applied to a company who accept people with bad credit ratings).

We are therefore stuck in that we cant rent out the house in this state but cant afford to do it up. Ideally we would like to re-mortgage the house and stay in it ourselves but I dont think we would get another mortgage... the fact our current mortgage is with Northern Rock is a major worry as well as the payments have just gone up, although we can afford the payments I worry that they will just go up and up.

I know it would make sense to just sell up but I would like to keep the house if possible.. can anyone give me any ideas? We are really panicking and to be honest it is making us ill.

As it's just 2 of you, could you do it bit-by-bit? Do the structural stuff (which obviously is vital as without it the rest of the house will be ruined), then do each bit as you can afford to in descending order of necessity.

For example you say the bathroom needs replacing - is that because the toilet leaks (bad) or because it's a nasty colour (annoying but you can live with it).

My in-laws bought a new house on the Aussie Dream 1/4 acre in Sydney when they were young and started with the kitchen cupboards that were built into the walls by the builders, basic appliances, one shower room/lavatory, bare plaster walls and a matress on the floor. They then did each room at a time. Father-in-Law went on The Price is Right (or something) to furnish it!

ixwood

Are you looking to sell up? I don't see much other alternative really.

if you can get out with your coat, or even a profit, you'll be doing well.

sasp

panda_bear wrote: »

Hello, this is my first post! I hope someone can help as my partner and I have got a worrying dilemma.. its a long story about 3 years ago my partner bought a house on a buy to let mortgage with Northern Rock which we intended to rent out. At the time we were living in a local authority house after we had both got divorced and bought this property as an investment for the future..

We have both had bad credit in the past due to marriage breakups etc and thought we were doing the right thing. We had some tenants in short term (friends) however since then we havent been able to let the property due to major repairs needing to be done eg roof leaking, boiler not working properly, shower not working, bathroom needs replacing etc.. So until the end of last year we were paying the mortgage on the property plus the rent on where we were living. We did miss a few mortgage payments but then paid extra to make them up. Eventually we lost part of our income and realised we couldn't sustain keeping two houses.

We then moved into the mortgaged property supposedly to renovate it, however the work required is so major it would take years to save up to pay for it all. We have just tried to get a secured loan on the property to pay for the work but have learned today that it has been declined due to our mortgage arrears (obviously our bad credit rating didnt help either even though we applied to a company who accept people with bad credit ratings).

We are therefore stuck in that we cant rent out the house in this state but cant afford to do it up. Ideally we would like to re-mortgage the house and stay in it ourselves but I dont think we would get another mortgage... the fact our current mortgage is with Northern Rock is a major worry as well as the payments have just gone up, although we can afford the payments I worry that they will just go up and up.

I know it would make sense to just sell up but I would like to keep the house if possible.. can anyone give me any ideas? We are really panicking and to be honest it is making us ill.

Hi Panda,
Don't worry too much about the meanies, there are people who will be along to help. I can't really offer any advice, just giving you a bump so others can see your post.
Just wondered have you approached your local council they may have grants available if your house needs repairing to benefit your disabled child.
I personally would try to do as much as you can yourself, visit car boot sales/charity shops etc to decorate as much of the house as possible, this way you won't be in further debt. Perhaps have a decorating party where you invite friends/family to help you (provide snacks/drink etc) this is what OH and I did (cheap labour:D ).

I hope you get sorted soon, take care and try not to worry too much
sasp x

Generali

Sorry, missed the disabled child bit. Still my post may still apply, depending on the nature of the disability.

Sammy85_2

If you are claiming benefits you may be able to apply for a Warm Front grant. They will come and assess your property and you may get your boiler/central heating replaced and insulation to your walls and loft even! There is a huge list of benefits that may make you eligible for the grant and you only need to be claiming one of them.

You could also get some money back from your council tax if the property was empty due to being uninhabitable. We got a months worth of council tax back for our house while half the roof was off for a month following storms. No hot water/heating/leaking roof may qualify you for a rebate, but you'd have to look into it in more detail to find out what your council class as uninhabitable, and of course you'll have to have evidence. (Written quotes detailing the work required and photographs usually do the trick)

Hope all goes well for you
x