Re-mortgage with bad credit score

[babydad]

Anyone recently re-mortgaged and tried to release some equity in their house?

We have a LTV of about about 52% and we want to take money out to raise it to 62%, however we have been rejected by Halifax due to a poor credit score. We can however appeal, so it's not a definite no as per usual. We will be doing this.

Credit score has been hit because of stupidity, where a couple of missed payments on credit cards and gone into an non-agreed overdraft a couple of times. Also have a high level on credit cards which we hope to clear if we get this money.

Partner has a brilliant credit score and in fact is the higher earner, but seems to not have helped.

Slightly worrying, we won't be able to take advantage of the equity in the house.

I realise these are due to my stupiid mistakes, but looking for a work around.

It might be worth speaking to a broker as they'll know who is more likely to lend more. You could also look into improving your credit rating in the next year and then have a go at remortgaging.
One question, though. Are you absolutely sure you can't cope with the debt without remortgaging? Remember that you do pay interest on that amount and if you don't make overpayments, you'd carry on being charged for another 10, 20 or however many years... other options would be to consider changing to a 0% credit card or taking out a low interest loan.

I would love to move it all to a 0% interest CC but the credit score has affected those chances.
We are dealing with a broker and to be honest Halifax have only rejected on the credit score and allow for an appeal so there is hope (little I know).

It is a really really poor idea to convert unsecured debt into secured by borrowing against your house. I know it seems like the only way forward but it won't be.

Contact Stepchange, a debt advice charity and explain everything to them and they will advise you. If your credit rating is poor anyway a DMP may be a better idea

But the borrowing against the house is not just for debt reconciliation, its for works to the house to make it larger and more valuable. Only a small % is for the debts.

What do you mean by a DMP?

Oh okay, may be an okay idea then

A DMP is a plan with all of your creditors to freeze interest and default on payments, and pay them token amounts at a set rate per month that you can afford, it goes through Stepchange so it's just one payment per month.

It does screw you credit rating though because you have to default, but you can reduce debt in a manageable way for you so you don't accrue more.

Give them a call and explain everything, they'll be able to advise on your best move