Re mortgage

[Jessy270773]

Hi, I was hoping someone could point me in the right direction with some useful advice. After my partner left me after 20 years he agreed that the house would be mine as it was only bought for our child. I took over the house in March 2024, I managed to get a mortgage as I only needed £30,000. Since then however I have been paying off all the debt that he says is my problem saying as I got the house. There is a fair bit of debt and now a problem with the roof that won't be an easy fix. I now have bad credit and I already struggled to get the mortgage since I was on benefits. I am thinking about a remortgage. My house is worth £260.000 and I was wondering if I took £15,000 I could get the problems fixed on the house and pay off all debt, I would have thought it would be better than the mess I'm in now. Does anyone know if I will be able to get a remortgage from somewhere regardless of the bad credit as there is so much equity in the home.

1. I know I have bad credit
2. Only had the house in my name since March 2024
3. Not looking for a huge amount compared to price of house.

I hope someone can help, thanks in advance.

Being able to take on extra debt is totally dependent on your credit score & checks being done so if you can’t pass the checks for additional lending then it’s going to be a no. If it’s a small amount you may be able to be approved for it but it will be down to your credit score.

Oh dear @Mrsttcno1 looks like I'm stuffed then, thank you for letting me know.

Your best bet is to contact a mortgage broker that specialises in people with poor credit scores.

Thank you @Anonym00se

I’m not clear on what debt you’re referring to? Do you mean the mortgage debt, or is there other debt? If so, whose name is it in? Just because ‘he says’ you are responsible for it, doesn’t necessarily make it true.

What debt and in who's name?

Debt to british gas and next and a loan company. They were taken out in my name and I can't dispute that. Also a huge solicitors bill of over 5 grand. I just want the stress to go away. I know it will make my mortgage go up but I'd rather just get rid of them than have the stress hanging over me. @Hankunamatata

Unlikely to be approved until your credit score recovers unfortunately. As PP says you may get approved from a lender that helps people with poor credit but the interest rate will be very high.

Thank you @Hannahandlucy

Ask for mortgage to be changed to interest only for a period or over longer time frame. Free up some more money?

Perhaps contact debt charities. They might help you come up with a plan

I genuinely thought because there is over £230,000 in equity I would be able to get one. Thanks though @Hannahandlucy

Contact a debt charity like Debtwise for advice
www.gov.uk/debt-advice

If you have £230,000 in equity you could sell your house, pay off your debts and buy a smaller house outright. Then you wouldn't need a mortgage.

I’d go to whoever it is that you have the current mortgage with and see if they’d give you a secured loan.

Thank you @Questionary

Speak to a financial advisor. Sorry you've been left in this crappy situation ☹️

Do you still only receive benefits or do you work.? Are you still accruing debt? You seem very vulnerable, please contact citizens advice or step change etc - reputable charities etc not just some random mortgage broker.

Other smaller houses in the area are still expensive and my son and I don't want to leave our home thank you though @KnickerlessParsons

Hi, how would that work? @OneOliveEagle

There are lenders who specialise in mortgages for those with bad credit (I work for one). The rate will be higher though. Speak to a mortgage broker.

You might not want to leave your house, but getting further and further into debt when you could pay it all off is not a long-term solution. You would be significantly better off in a smaller property with no debts and no mortgage.

Thank you @Furrydogmum yes he left us in a mess alright. It has been so difficult,

You probably need bespoke advice. Because of the length of a mortgage it's not always cost effective to put repair size costs on the mortgage as although it is a typically a lower interest rate than a typical loan because it's over a longer period of time the interest can be more than a shorter loan with a higher interest rate.

The priority to do now is to list all your debts and what the interest rate on each is then all of your outgoings and work out how much you have each month to pay towards the debts. Priority 1 is usually to make the minimum payments on all of the debts, the next priority is clearing the debt with the highest interest rate.

If you have the income to clear some of your debts in a 12 month period you might find that a 0% credit card would help. There might not be many or any options due to credit history.

The Martin Lewis podcast has some good advice on debt. He has 3 questions to pressure test whether you need further support with your debts I struggling to remember them properly but I think they are any of the following - debts more than your annual salary, debts that keep you awake at night and debts where you are struggling to make the minimum repayments.

Best of luck.

Do you have any personal support through this? It sounds like you have found yourself in a financial abuse situation, apologies if I've misread. Make sure you take care of yourself.

You need to speak to a broker, they'll be able to speak with lenders that you may not have heard of but will specialise in mortgages for those who have a poor credit rating. The rates will be higher than your typical high street bank so bear that in mind in terms of the monthly payments etc

Hello @Photodilemmas I just receive benefits thanks, yes I feel like a bloody useless idiot,