Self cert remortgage with poor credit score....stuffed?

COOKIEWILLOW

Hi will keep it brief. think i know the answer anyhow! hubby self employed for just 9 months, in last year we are late with payments on cc and other bills due to irregular money coming in so credit score is LOW. Mortgage however has always been paid on time by my part time job. So looking to remortgage to obvious clear debts. House worth £120,000 (not a massive amount i know), mortgage balance is £30,000 so quite a bit of equity, looking to borrow £30,000 which would clear everything plus a few home improvements, when hubby enquired to our lender (bank of scotland), online the next thing we know is we have having phonecalls and emails off CRYSTAL CLEAR home loans, does this mean that our lender has not wanted to know? It is as well the worst possible time to find a deal even if you got a perfect score with regular money so are we wasting our time? Has anyone heard of Crystal Clear? These home loans frighten me, as i have heard some frightening stories on here. I do think no one will touch us yet a mortgage for £60,000 will still be manageable. Any ideas would be most greatfully received. thank you

minimike2

You shouldnt have a problem remortgaging at that LTV on a self cert deal, you just might have to pay a bit of a premium.

You wont be able to apply via the high street, so you should speak to a broker, but to be honest as long as your income covers it i dont see it being a problem.

What is your income?

COOKIEWILLOW

hi, my income is only £750 a month as im part time. Hubby varies being self employed some weeks good and we fine and others we struggle to pay for things like normal utilities because of loans, and cc debt. Obviously with them paid off it would be easier. Dont want to add too much to mortgage as if his business goes belly up we want to be able to manage mortgage.

COOKIEWILLOW

ps. mortgage is £320 a month so thats why i have covered that easily

minimike2

What does he expect to earn as a profit at the end of this tax year?

COOKIEWILLOW

not making much profilt im afraid, what he got coming in covers his van, mobile, diesel, N.I. whatever is left is given to me for food, kids things etc. not much of a business man im afraid. someone we know doen his books last year but could only do period jan to april and we had a rebate, but worrying about tax bill this year!!

minimike2

If hes not much of a business man, would it not be better for him to look for employed work as a way of tackling the problem, rather than add to the mortgage?

I think considering the circumstances, remortgaging is not the answer for you, as you are making unsecured debts into secured debts. Have you considered a debt management plan?

COOKIEWILLOW

might have too. but non payment of these unsecured debts will lead to us losing the house surely eventually. Hes actually a very bright man, who is a gas engineer and was happy working for an employer for the twenty years we have been married, but last year the employer went insolvent and there wasnt anybody taking on gas engineers so it was like "get a van and do it yourself", had loads of little jobs at first and also does landlord safety certificates for a local house letting agency but then work has been off and on since! plus theres expenses to pay like his corgi registration in march costing £200, dont think he thought it through, but thank you very much for your advice, I think we know the answer anyway but when people like these CRYSTAL CLEAR homeloans offer you the way out, you do get tempted!

minimike2

Why would you lose the house? Thats only going to happen if you add them to the mortgage, or put them on a secured loan, which you then cant pay.

Unsecured means exactly that, the house is not being used as security, just make sure you keep up with the mortgage payments, get the unsecured stuff onto a debt management plan and you should find things a bit easier.

COOKIEWILLOW

I thought that they can put a "charge" or something on your home, forgive me for being a bit green but not my area of expertise. also if we were to get on a debt management plan what would happen to his business, would he still be able to trade?