Using equity in my home

[debbs77]

Hi all,

I have around £100k equity in my home, but have bad credit. I remortgage two years ago after my ex husband 'gave' me the house, though obviously it wasnt as easy as that. I got a mortgage with a higher interest rate but since then my credit has got worse.

I'd like to take out some of the equity so that I can become debt free for everything else and only have the mortgage as debt.

Is there a way of doing this without a remortgage? I am 42 so not old enough for equity release

Ps. Ideally I would like to take £40k out of it

If you have a bad credit rating, then it's likely that the interest rate will be high, making it expensive and your home is also at risk if you can't pay the mortgage. There's also a risk that you wouldn't meet affordabilty criteria, so would be unable to remortgage anyway.

It is also concerning that you appear to have run up more debts, which suggests that you either don't have enough to live on, which would make borrowing more money potentially a bad choice, or that you aren't very good at managing your money or sticking to a budget.

Before you borrow any more money, you should have a really good look at your budget, see what essential costs you can cut, see if you can increase your income and see if you can actually afford to repay a bigger mortgage.

Plus if you are in unmanageble debt, which it sounds like you may be, what you need to do to solve the problem. The solution is rarely borrowing more money.

www.moneysavingexpert.com/family/money-help/

Is downsizing an option?

I'd like to take out some of the equity so that I can become debt free for everything else and only have the mortgage as debt.

^You need 40k to become debt free? How on earth have you racked this up?