Re mortgage with very bad credit

Helpmeplease_2-2

Hi people,

Im in a bit of a mess with my finance at the moment.

Between me and my wife we have a mortgage with about £99,000 left of the original £105,000 borrowed. The value of the house is £135000

Anyway, we have over the last 12 months managed to mess up on payments and with loans for a car and the house improvments we made, credit cards and an over draft its left us in a bit of a bad situation.

We have defaulted on pretty much all our payments over the last 6 months and our credit file has taken a bashing.


My idea is to take a remortgage or secured loan to consolidate all the credit which totals £30,000 against the equity in the house.


ANyone with advice on the best route out of this situation for us?

Thanks in advance.

cells

well even if you had a good credit rating i dont think you would find it easy to get a remortgage for more than 90% LTV.

so thats 120k remortgage giving you about 20k to pay off your debts

with your bad credit i dont think they will let you do that

UK007BullDog

Yup, you definitely are in a big mess mate.

I suggest that you start paying your mortgage again. That one is the most important.

As for a remortgage, you will have to see a broker, however you might not have enough equity in your property to do this remortgage because:

1. A lot of the adverse lenders have closed down
2. All of adverse lenders no longer lend high Loan to Values
3. The credit crunch is making it very hard to get any decent rates for adverse.

You need to look at the debt free wannabee board as well and you need to look at all your outgoings and see what you can get rid of. Live on a very very tight budget for the next couple of years to save the money to pay off the debts. Or you could try to sell your house and use that money to pay off most of your debts and rent somewhere cheap. Plus look at getting a second job for both of you.

You want a 100% mortgage but you cannot get that with your poor credit record.

What are your incomes?

Definitely go and see a whole of market broker.

jobbingmusician

I think you would probably get better advice over on the debt free wannabee board - there are loads of people over there who have been in a similar situation and sorted themselves out.

The advice is normally against taking out a consolidation loan, if you can avoid it, but I will let the good folk there advise you, as they are much wiser than I. Good luck with sorting everything out.

Edit: Crossed post with Bulldog - glad to see the same advice!!!