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Original poster

Any mortgage experts around that could explain something to me please

38 replies

Mammasjusttired · 07/09/2025 18:39

We’re currently in a really rubbish financial situation, neither me or DH have good credit ratings. We currently own our home but are slightly behind on mortgage as well as other bills. We desperately need to move house as well have a small two bedroom and due to DC additional needs we need another bedroom.
obviously getting a mortgage for a bigger house is not an option. However we have seen a shared ownership house near us that we are interested in. Is this something a mortgage company would allow us to do in our situation?
For reference we have approx £80k equity in the house. We bought it for 155 and it is now worth approx £210. New house is 55% ownership for £155

OP posts:
StopRainingNow · 07/09/2025 19:26

Not sure I understand. So you would be able to immediately pay £80k and only need to mortgage for 75k?

New2you · 07/09/2025 19:22

You might struggle to pass credit checks for renting

Queen0fTheNorth · 07/09/2025 19:22

Looks like we’re going to have to sell up and rent somewhere bigger instead unfortunately.

Even renting will be difficult if your credit ratings aren't great. There's so much competition for rental properties nowadays that landlords can pick & choose who they rent to. I think your best bet is staying put for now, work on clearing your arrears and improving your credit ratings. Is there anything you can do to make your current house work better for your family?

mindutopia · 07/09/2025 19:20

The best thing you can do is speak to an independent mortgage advisor. No one can guess based on your situation. Though on the face of it, it doesn’t sound affordable for you to pay the mortgage you have now, plus additional rent, when you already can’t pay just your mortgage. It sounds like you need some financial advice though to help you get back on your feet.

Original poster
Mammasjusttired · 07/09/2025 19:08

Sorry just realised I misread your post @YellowSubmarine994!

OP posts:
Original poster
Mammasjusttired · 07/09/2025 19:07

@YellowSubmarine994we wouldn’t be borrowing more, the mortgage would surely stay the same as we would need the same amount for the new house as we bought our current house for, although now we have 80k equity.
I didnt think this would be an option just wanted to check. Looks like we’re going to have to sell up and rent somewhere bigger instead unfortunately.

OP posts:
Aussiegold · 07/09/2025 19:07

Would you even be eligible if you already own?

There are lenders out there that will lend with bad credit but with a much higher interest rate, so with rent on top, probably won't be cheaper, even if you could get shared ownership.

YellowSubmarine994 · 07/09/2025 19:02

In short, no, don't go shared ownership. Yes, the mortgage will be lower, but you'll be paying even more on renting the other part. I don't think you're going to be in a position to move to somewhere with an extra room as no new lender will go near this situation, and the current lender won't let you borrow more.

I would say you need to talk to a debt counselor like Step Change for advice on your particular situation if you haven't already. You could also consider using the mortgage charter (6 months of interest only payments to give some breathing space).

Eggbaps · 07/09/2025 18:56

I wouldn't touch shared ownership in your situation. I'd also be concerned about adding moving costs to your existing costs.

Any other options- cheaper area? Could you let out your current place and rent somewhere more suitable?

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singthing · 07/09/2025 18:52

"We currently own our home but are slightly behind on mortgage as well as other bills"

What does "slightly behind" mean (how much/how many months, and what are you doing about this situation with the lender? Not even considering the other bills right now.

As pp said, no-one (reputable) will lend with arrears, but are you talking 1 month or 11?

titchy · 07/09/2025 18:51

Your current lender may let you port the mortgage, particularly if you clear the arrears. As others have said a new lender is unlikely to take you on. How would you afford the rent on the 45% though?

Didimum · 07/09/2025 18:49

A mortgage lender won’t touch you if you’re in arrears.

Queen0fTheNorth · 07/09/2025 18:48

It's highly unlikely any mortgage company would take you on if you're currently in arrears. You can't afford your current £155k mortgage so how would you afford the new mortgage plus the rent on the other 45% of the property?