Any Point At All!!

COOKIEWILLOW

Hi i have quiered on this subject before. Looking to remortgage, but hubby needs to self certify, house worth approx £110,000 balance owing £32,000. have £30,000 debt so wanted to use equity to raise that and pay off everything. had credit report (hubbys, as mortgage in his name) and although a load of green the worst on there is Lloydstsb cc with 3 payments late, a lot satisfactory on other accounts and out of 18 credit accounts on there:eek: ten have been settled (old loans etc). paid for his score and it came out.........29!!!!!! no defaults or ccjs on there at all. Now is there absolutely any point in us trying to remortgage through a broker? Hubby says no point in ringing our lender (bank of scotland) for an additional advance as although mortgage has always been paid on time since we have had it, our circs have changed because of self employment (no books) and also this incrediably low credit score, im just wondering if its worth attempting at all through a broker too???

COOKIEWILLOW

No point at all then!!!

luckyfool

Cookiewillow - If your estimate of the house value is accurate then I think you can almost certainly get something or other done with a new lender.

Bank of Scotland would certainly give you a new product (as they do not underwrite such a transfer), though a further advance would really come down to a number of different factors and your Husband may well be correct.

Exactly what rates are available would depend on a number of factors, but with that amount of equity remaining there are plenty of Self Certification options still in the market, and at rates that are not too bad.

COOKIEWILLOW

estimate of house is approx 10k below!!just using that fig because of recent climate. we know we will have to pay higher rate but only other way if refused is to get one of those stupid home loans with stupid%. didnt want to remortgage at all as our mortgage is really low each month but circs change. dont know which way to go forward, at all!!!! do you think its worth speaking to our lender in the circumstances?? or just go and talk to a broker such as charcol? thank you for answering btw

COOKIEWILLOW

luckyfool wrote: »

Cookiewillow - If your estimate of the house value is accurate then I think you can almost certainly get something or other done with a new lender.

Bank of Scotland would certainly give you a new product (as they do not underwrite such a transfer), though a further advance would really come down to a number of different factors and your Husband may well be correct.

Exactly what rates are available would depend on a number of factors, but with that amount of equity remaining there are plenty of Self Certification options still in the market, and at rates that are not too bad.

ps we wont get a tidy rate with a score of 29 though!!!

luckyfool

Cookie - The scores you are given by the Credit Reference Agencies are virtually meaningless and most lenders will use their own proprietary credit scoring system. The one the agency gives you is really just a guide and an excuse for them to flog an extra add on to you.

The score takes into account things like

Are you on voters roll, if so for how long?
How many addresses have you been at in last 6 years (fewer the better).
How much credit do you have and how well do you keep up to date on it
Another factor is if all the credit facilities you have (ie Credit Cards) are at or near their limits. Someone with £20,000 across 10 credit cards but only using about 30-40% of the available limits will tend to get a much higher score than an exactly equivalent person who has £20k on 10 cards but whose overall credit limit is also £20k.


Also, when scoring a mortgage one of the biggest factors will be how well you have paid your last mortgage, and the loan to value you require. i.e. If you are borrowing 60% (as you would be) then you would generally be able pass with a much lower credit score than someone asking for 85%.

I'm not going to specifically recommend a broker, but obviously it is important to make sure it is a whole of market broker you speak to.

COOKIEWILLOW

thank you luckyfool. hope we can sort something out anyway. think best bet is for us to ring our lender first and go from there. will defo be whole of market and fee free, bottom line if we cant, we are selling up, clearing debts, and going to live in rented accomodation, i will give up my very demanding, low paid job, hubby can go fiddle with his worktools, and we be off the property ladder, will lose the home that my two sons were born in, have worked hard for but it will be some kind of blessed release as well.!!!tbh

luckyfool

Cookie - just to give a quick example, First National would offer a 3 yr Fixed Rate Self Cert below 60% for 7.79%, giving a monthly payment of 469.93 over 25 years on repayment if you borrowed £62k. That's from a lender that doesn't credit score at all below 60% and will ignore payment profiles on everything apart from your mortgage.

Just to give you a quick idea of a virtual "worst case" scenario of what should be available, though I would hope that a good broker would be able to source you something better!

COOKIEWILLOW

Thank you luckyfool, you have had great patience with a dull blonde!! Do hope that we get something less than 7.79% though. our mortgage is only £314.00 at present (£310.00 next month). ABsolutely sticks in my throat that debt (albeit..our own fault) has made us do this at all. never mind, live and learn. Will have to find a broker that can hopefully help us.. Thanks for everything and take care

COOKIEWILLOW

About to ring a broker, about the above, abso bricking it!! wish i had studied harder at school!!! Hope we can do this without it hurting too much!!

silvercar

Even if your mortgage is only 314 at present, your total on the mortgage and other debt must be more than 470?