help and advice needed please .

haggisAThome

hi all ...


i was wondering if any experts can help me with advice on my problem ...

back last year me and the wife decided to sell the house and move , we put the house on the market and after a month we accepted a offer that was put in (1st April 2007 ) we were desperate to move as we were in a situation that was not very good , and the mortgage payments were going through the roof . the family were very keen to get in so we thought this should be a fast move !!!

after 3 weeks with out hearing any thing from any one i phoned up the estate agents to ask them if there was any news , they phoned back and said all is fine . i managed to get a transfer with my works , and that was very good news . after a month and a half i was starting to sweat as there was lots of messing about from there solicitor and them selves , so i told the estate agent to put the house back on the market as it was takeing to long ( in the hope this would move the other side along ) after about 2 days i was told that we are all ready to go and that there will be a exchange and completion in one weeks time . i thought ahh cool , so i phoned my new boss to tell him i will be up in one week , and sorted out the van and time off work to move . so after moving and phoning the estate agents on the Monday only to find out the other party's solicitor has decided to go on holiday for a week and there has been no compilation :mad: , now this is were i start pooing my self as the mortgage was 1100 quid a month , add to that the rent i have to pay on my new house and add to that i have 3 daughters ( all under 11 ) and the wife did not work at the time . i could not pay the mortgage and advised the mortgage company of my situation and payed them what ever i could . to cut a long story short the house sale eventually went through end of Oct 2007 ..


my problem is ..

i was told that all was going ahead and moved , i now have late mortgage payments against my name and this had blown my very good credit rating out of the water . i cant get a mortgage , or any thing ( we really need a new car , ETC ETC ) the estate agents have said they would get me a letter stating that i was messed about and it was not my fault , we told experian and they have put a note on our names saying it was not our fault . but i still have the late payments against our name .


what can i do ( i also now live in Scotland if that makes any difference )

thanks for looking

Scott

silvercar

You have late payments noted alongside an explaination, not much else you can do really. I would have thought this wouldn't have stopped you getting credit if your rating was otherwise clean.

In the time the importance of these black marks becomes less significant.

haggisAThome

thanks for the reply .. i was hoping that mortgage express would be willing to remove the late mortgage payments from my name , but i just got off the phone to them now and they say no way . talking to my bank and others missing payments of any type will affect my rating


thanks for takeing the time to look in and commenting though :beer:

happybroker

with regard to obtaining a new mortgage you may still have hope. Some lenders will consider your monthly payment as made provided it was paid less than 30 days late and some even consider the payment made provided 75% of the due payment was paid less than 30 days late.

Provided your rent has been paid on time each month that could help when applying for a mortgage.

Some of the "high street" lenders want to see clear credit for 3 years and if you have a sizable deopsit left over from the sale of your old place some will listen to reason provided you have some evidence of the problems you had.

Most of the sub prime lenders are concerned only with the last 12 months payment history so a light at the end of the tunnel, however dim, is not that far away.

Good luck

haggisAThome

your just the person i could do with ... a mortgage adviser that understands .

when i sold my house i lost all the equity that was in it . i made the biggest mistake of my life , i moved my mother and brother in with me , this nearly cost me my marriage !! we were going to keep all the surplus cash but at the end of the day , my mum is to old to have problems like that so i give her all the cash to get a new place to live .

we were offered a low cost mortgage with a housing association , and went to see the adviser ... she laughed and said " you have bob hope , and no hope " . this is with out even looking at her PC . we don't have any deposit , but i would have hoped that with the housing association putting up to 50% of the cost of the house that the mortgage peeps would smile on it as its less the risk for them ?

my self and the wife have been talking today and have come to the conclusion that we are poor and owe approx 24,500 in debit . i was thinking about just killing the rest of my credit rating and getting a Iva or its equivalent up here (Scotland) but my good side is saying am i mad .. i need to try and sort my life out as my wages are going down and this month (1600 just on debit before we eat) its a bit to close , should i talk to ccca ?

luckyfool

Haggis - if it was just the one late or missed payment on the mortgage before it was settled, and this was some time ago then that on its own would not necessarily be enough to cause significant problems. If this cascaded into other credit not being paid or being paid late, or if it was more than one month of significant underpayments/missed payments on your mortgage then you have issues.

On Housing Association shared ownership type schemes the high street lenders that will lend would consider the 50% as a deposit, however if your credit is significantly impaired then you are not going to find any of them willing to help in my opinion. The specialist sector is unlikely to be much better as the one lender which routinely offered shared ownership adverse mortgages (Preferred) has shut their doors, and the others that still look at that type of mortgage will charge extortionate interest rates.

A Debt Management Plan or Trust Deed might be worth considering. You could speak to someone from the CCCS or Payplan or the Citizens Advice Bureau and run through all your circumstances with them. You might have a better idea after such a call as to what the best route forward would be for you.

haggisAThome

hi luckyfool


yes it was 3-4 missed payments , this is the only time in out lives we have ever missed any payments . would takeing a Iva kill the rest of my credit rating ? . also what specialist were there for shared equity mortgages ?

thanks for replying

luckyfool

Preferred Mortgages used to do them (part of Lehman Bros) but they have closed to new business. The operators still in that market are charge rates that border on usurious so I would urge you to steer well clear.

If you do not have any defaults or ccjs at this point, but only mortgage arrears and some late or missed payments on unsecured credit then if you were able to get everything up to date and pay it on time for a year or so then your credit would be largely repaired . . . call that option 1. Not sure how realistic that is as things sound tight financially just now.

option 2 - You could negotiate reduced agreed payments with all your unsecured creditors - CCCS/Payplan/CAB can all assist with this and it's known as a Debt Management Plan. Based on a budget planner they negotiate an affordable monthly payment with everyone, and in some circumstances can get the creditors to suspend or stop charging interest.
Pros - Your credit is not damaged as badly as if you went to a CCJ status or went into an IVA or Trust Deed. You eventually pay all your creditors back, which may be an important consideration to you in that you live up to your commitments.
Also, as long as you kept up payments you would not be taken to court by any of your creditors.
Cons - You pay everything back eventually, this means depending on how much you can afford to pay every month (the CCCS or other body would go through your income and outgoings with you to come to a realistic monthly figure you could commit to) you could be paying into the Debt Management Plan for a long long time, though you can obviously increase your payments or pay it off in full in the future as circumstances allow.
Also - any credit within the plan is likely to go to a Default status, which will remain on your credit file for 6 years.

Option 3 - an IVA or Trust Deed. This allows you to wipe any remaining debt after a set period of making your monthly payments to the plan. In general terms it is a more serious black mark on your credit file. There are other implications to doing this that you should seek advice on. An advisor from any of the charitys previously mentioned will be able to talk you through your options. You can also get info from http://www.insolvency.gov.uk/

haggisAThome

thanks luckyfool ..

yes its only missed mortgage payments , every thing elce is up to date ( just )


thanks for your advice and help :beer:

happybroker

sorry for the delay in coming back, if your spending £1600 pcm on £24500 worth of debt then this surely this only has a couple of years or so to run?

consider re scheduling the debt, be careful who you speak to as there are plenty out their "flogging" money which i would guess at being of little use to anyone. Speak to your creditors, they will appreciate your honesty.

IVA's are not as bad as some make out so long as you know what you are getting yourseld into. The main thing is watch out for the charges levied by practitioners. Speak to CCCS before going to the usual companies advertised on TV.

Remeber that your mortgage broker will very probably be licensed to offer debt counselling and may well have referall points for iva's etc.

Good luck Haggis, I'm sure you will get things worked out

haggisAThome

thanks dude


to be honest i could say i think its not going to burn off fast , i would say i have at least 5 years min of debt , i would love to be free of it and have my own roof over my head ... just for the security ..

i am to scared to go for a Iva as it will kill what ever is left of my credit rating , and the thought of a consolidation ( waste of time ) loan is fruitless ... what shall i do ?