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  • #1

    if we sold and downsized ...

    would we get another mortgage with our really bad credit history?

    Is it possible as this makes sense in our situation we have a huge 4 bed 2 bath house with 2 people living in it , we could sell this and buy a 2 bed house and it would be cheaper for us and the mortgage would be back on repayment as at the moment its on interest only and not likely to ever go back on repayment as we just couldn't afford that .

    anyone know if its possible or are we stuck for now ?

    please and thank you
    _______________________________________



    Tags: advice, bedroom, broker, cash, collapsed, credit, credit history, dying, financial, fine, home, house, interest, investors, lenders, living, loans, money, mortgage, mortgages, people, property, repayment, repayments, selling, shortfall, thank you
  • #2
    Re: if we sold and downsized ...

    There are some lenders who would overlook your credit history, but the repayments would prob be to high for you to consider it if im honest.

    There is virtually no non status mortgages anymore, so thats a dead end as well.

    You say you been paying interest only, so what exactly would you be left with after selling the house to buy another? would you have enough to clear the current mortgage and be left with something to put on another property?

    When your interest only returns to a variable are you sure you couldnt afford the payments?

    Personally, i dont believe in interest only mortgages, never have, they should never have been used to make a house affordable, to many people i know have found themselves in a property with negitive equity and a 30k+ shortfall all because they had an interest only mortgage.
    I'm an official AAD Moderator and also a volunteer, here to help make the forum run smoothly. Any views or opinions are mine and not the official line of AAD. Similarly, any advice I have offered you is done so on an informal basis, without prejudice or liability. If in doubt seek advice from a qualified insured professional - Find a Solicitor or go to the National Probono Centre.

    If you spot an abusive or libellous post then please report it by Clicking Here. If you need to contact me, for instance if I've issued you a warning, moved, edited or deleted your post, please send me a message by clicking my username.

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    • #3
      Re: if we sold and downsized ...

      Originally posted by SXGuy View Post
      There are some lenders who would overlook your credit history, but the repayments would prob be to high for you to consider it if im honest.

      There is virtually no non status mortgages anymore, so thats a dead end as well.

      You say you been paying interest only, so what exactly would you be left with after selling the house to buy another? would you have enough to clear the current mortgage and be left with something to put on another property?

      When your interest only returns to a variable are you sure you couldnt afford the payments?

      Personally, i dont believe in interest only mortgages, never have, they should never have been used to make a house affordable, to many people i know have found themselves in a property with negitive equity and a 30k+ shortfall all because they had an interest only mortgage.

      There are no lenders that overlook your credit history when it comes to mortgages these days unfortunately ( or perhaps fortunately!!!).

      As for interest only mortgage , it's like any financial planning tool, it's right for some and not of others. It's all down to the advice given, I've arranged loads of them , but only in the situation where it was the correct thing for the client.

      Saying that though interest only is a dying thing in home buying market, but it's alive and well in the buy to let market.

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      • #4
        Re: if we sold and downsized ...

        Originally posted by SXGuy View Post
        There are some lenders who would overlook your credit history, but the repayments would prob be to high for you to consider it if im honest.

        There is virtually no non status mortgages anymore, so thats a dead end as well.

        You say you been paying interest only, so what exactly would you be left with after selling the house to buy another? would you have enough to clear the current mortgage and be left with something to put on another property?

        When your interest only returns to a variable are you sure you couldnt afford the payments?

        Personally, i dont believe in interest only mortgages, never have, they should never have been used to make a house affordable, to many people i know have found themselves in a property with negitive equity and a 30k+ shortfall all because they had an interest only mortgage.
        we had a repayment originally but then the business dropped and w had no choice but to put it on interest only, if we sold the house now we would have between £20000and £30000 to buy another one, i found this out by another house near us which is one bedroom and bathroom less than ours and is going for £120000 , we got a self cert mortgage and the repayment is £616 a month , on interest only its £427 .
        _______________________________________



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        • #5
          Re: if we sold and downsized ...

          Ah i see, I dont know what to say then, i dont know of any self cert's anymore, if there were id of had one. and my broker is independant, has access to them all.

          mgfboy, there is at least 1 group i know of that overlook your credit history for a mortgage, there not part of the group of lenders you would know about, they are a group of investors who lend money with high interest returns, kinda off the grid so to speak.

          Apart from mortgages they do loans too. But as i said before, pointless considering them as the repayments would be massively high.
          I'm an official AAD Moderator and also a volunteer, here to help make the forum run smoothly. Any views or opinions are mine and not the official line of AAD. Similarly, any advice I have offered you is done so on an informal basis, without prejudice or liability. If in doubt seek advice from a qualified insured professional - Find a Solicitor or go to the National Probono Centre.

          If you spot an abusive or libellous post then please report it by Clicking Here. If you need to contact me, for instance if I've issued you a warning, moved, edited or deleted your post, please send me a message by clicking my username.

          Comment

          • #6
            Re: if we sold and downsized ...

            Originally posted by SXGuy View Post
            Ah i see, I dont know what to say then, i dont know of any self cert's anymore, if there were id of had one. and my broker is independant, has access to them all.

            mgfboy, there is at least 1 group i know of that overlook your credit history for a mortgage, there not part of the group of lenders you would know about, they are a group of investors who lend money with high interest returns, kinda off the grid so to speak.

            Apart from mortgages they do loans too. But as i said before, pointless considering them as the repayments would be massively high.
            well i will get it valued as i have seen some houses that are £30,000 and £40,000 where we live, they need some doing to them but if we bought one cash and lived in one room then did one room at a time with the money we would have used for the mortgage then we wouldn't need another mortgage.
            _______________________________________



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            • #7
              Re: if we sold and downsized ...

              Thats the best way if you can do it.
              I'm an official AAD Moderator and also a volunteer, here to help make the forum run smoothly. Any views or opinions are mine and not the official line of AAD. Similarly, any advice I have offered you is done so on an informal basis, without prejudice or liability. If in doubt seek advice from a qualified insured professional - Find a Solicitor or go to the National Probono Centre.

              If you spot an abusive or libellous post then please report it by Clicking Here. If you need to contact me, for instance if I've issued you a warning, moved, edited or deleted your post, please send me a message by clicking my username.

              Comment

              • #8
                Re: if we sold and downsized ...

                Originally posted by SXGuy View Post
                Ah i see, I dont know what to say then, i dont know of any self cert's anymore, if there were id of had one. and my broker is independant, has access to them all.

                mgfboy, there is at least 1 group i know of that overlook your credit history for a mortgage, there not part of the group of lenders you would know about, they are a group of investors who lend money with high interest returns, kinda off the grid so to speak.

                Apart from mortgages they do loans too. But as i said before, pointless considering them as the repayments would be massively high.
                Fair enough SXguy, as you can imagine as a FSA independant regulated mortgage broker I would only ever go to regulated lenders ( and we all know what a pain they can be), so I could only advise on those mate. In my experiance "group of lenders" that would ignore credit history , is a quick way of suddenly having no kneecaps if you get into trouble!!!!

                Comment

                • #9
                  Re: if we sold and downsized ...

                  LOL well yes there is that possibility also mate!
                  I'm an official AAD Moderator and also a volunteer, here to help make the forum run smoothly. Any views or opinions are mine and not the official line of AAD. Similarly, any advice I have offered you is done so on an informal basis, without prejudice or liability. If in doubt seek advice from a qualified insured professional - Find a Solicitor or go to the National Probono Centre.

                  If you spot an abusive or libellous post then please report it by Clicking Here. If you need to contact me, for instance if I've issued you a warning, moved, edited or deleted your post, please send me a message by clicking my username.

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                  • #10
                    Re: if we sold and downsized ...

                    House boat? why not consider living on the cut?...Just a thought..have a look around.

                    kuma
                    Do you think I look like Hitler?

                    Comment

                    • #11
                      Re: if we sold and downsized ...

                      Pity that old shed of mine collapsed couple years ago, miss renting to the 36 fine gentleman, stood up.
                      I'm an official AAD Moderator and also a volunteer, here to help make the forum run smoothly. Any views or opinions are mine and not the official line of AAD. Similarly, any advice I have offered you is done so on an informal basis, without prejudice or liability. If in doubt seek advice from a qualified insured professional - Find a Solicitor or go to the National Probono Centre.

                      If you spot an abusive or libellous post then please report it by Clicking Here. If you need to contact me, for instance if I've issued you a warning, moved, edited or deleted your post, please send me a message by clicking my username.

                      Comment

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