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.

I would keep calm, your situation might not be as bad as you think. Firstly what term is your mortgage over and when do you plan on retiring? Stretching the term although more expensive in terms of interest, might well free up money for clearing debt, and you can always decrease the term in the future.

have you tried negotiating with the people you are in debt to? You can sometimes get interest frozen and that sort of thing, do you know which is the most expensive and understand the snowballing technique?

Even though your credit rating may be poor the value of your home is high in relation to how much you want to secure agains it, so you should be able to get a mortgage but maybe not through the usual high street lenders. A good mortgage broker is your friend here, They will know which building societies are likely to offer sub prime mortgages but these are likely to be at a higher interest rate to the aforementioned high st lenders. Your broker will go through this with you.

You don’t need to sell your house (unless you want to), speak to a broker and consider your options.

Thanks @Eminybob would you be able to recommend one?

You can get help through universal credit to pay the interest on your mortgage called SMI.

Then consider selling up.
Smaller propert. No debt.
Think about it.
Moving could be a new start.

Yeah this, there are a few around it’s free advice and they don’t work on commission and they won’t be tied to any particular lender so you’ll get the best for you, not the best commission for them.

Just seen you don’t work, how old is your dc? Could you make yourself a bit of extra money babysitting or something? Even £20 here and there will help reduce your debts much quicker once you focus it on the most expensive ones.

Yes I know its something I might have to think about @SilenceInside

You're not.

Honestly your best bet is to speak to citizens advice. You would be eligible fir DMPs, IVAs etc where appropriate and/or downsizing etc but not remortgaging. Don't approach anyone except those reputable charities. Good luck OP.

Hi @Superscientist Not much support and still heartbroken over my husband leaving and this big hole I'm in

Being able to remortgage or get a secured loan depends not only on your credit rating but also on your ability to repay what you borrowed, so if your budget sheet shows that repayments are not affordable, you won’t be able to get a loan. But even if you could get a loan, why take one and pay interest?

If you do have a bit of disposable income why not make payments arrangements directly with the solicitors you owe money to and the 2 loans/ credit cards (sorry can’t remember what they are)? You said your credit rating is bad - does that mean you defaulted on your credit cards? If so, the interest will stop, which is good. You can offer as little as a few pounds which should be accepted as long as your financial statement shows you can’t afford to pay more.

The above obviously doesn’t resolve the issue with the roof, but can this be patched up until your financial circumstances improve?

If on UC, you can get a bit of support with your mortgage interest. You can also have a lodger without affecting your UC.

do contact a couple of debt charities because there are good debt advisers and terrible ones, so you need to get a couple of opinions about the options available to see to see how they compare. Perhaps call National Debtline and maybe a local debt advice provider - but only from a charity/ non-profit.

Thanks @Stef92

Head over to MoneySavingExpert forum (Martin Lewis) for some good advice. They will tell you that you shouldn't lend your way out of debt or not turning unsecured debt into secured which is true but they will suggest the best solutions

You need to earn more ... at work or by getting a lodger

Do you have anyone who would guarantor it for you?

If yes you may be able to re mortgage for the additional amount.

It's better to sell voluntarily and keep the money than to have it repossessed.
You are living beyond your means and that's not sustainable.

Is the house definitely in your name only? Is there a financial consent order?

Who is your current mortgage with? They might give you a further advance.

Even if you could get a mortgage, can you afford it?

Have you done a written budget? Does your income cover your expenses?

Is there any possibility of getting a job and increasing your income? This will be your fastest way out of this hole.

My first comment would be have you absolutely got full ownership and associated mortgage of your house in the final order of your separation/ divorce? If not and you've just taken over payments for a new mortgage then get that sorted.

Get yourself over to the brilliant Debt Free Wannabe forum on MSE - there's tonnes of advice to be had there from people who are/ will have been in similar situations. It sounds as if your consumer debt is actually relatively small and it's rarely recommended to borrow more to consolidate debt though your solicitors bill might be one of those rare occasions. Good luck!

Hi @Livinghappy The house is in my name only, i'm recently divorced and there is a FCO in place, what does this mean exactly?

I'm a little out of the loop. But I used to work with companies like Lehman brothers , general motors and others who had uk business specialising in sub prime mortgages...that is people like you.
Back.before the credit crunch they would have bitten your arm off to lend to you...I'm sure that things are not much different.

As people have said speak to a mortgage broker. There are thousands out there. They will I am sure, have no problem given the loan to value i e your house is worth way more than you want to borrow

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

Dont do this! It will cost more to move than stay.