Bad credit rating - out of options

[dunsink]

Myself and my wife are looking to remortgage with a view to refinancing a number of loans, the problem is that none of the traditional lenders will touch us because of my wifes bad credit history. On that basis, our broker has come up a choice between GE Money and Start Mortagages, both lenders quote interest rates above 6.5% i.e. far from ideal!

My credit history is pretty clean on the other hand and I would qualify for the mortgage amount on my own salary alone. I've been thinking about the idea of applying for a mortgage on my own and at the same time releasing some equity from the house for 'home improvements' - I think you can see where I'm coming from here. Do folks think this is a viable option, is there anything that I should look out for with this approach? I should point out that our current mortgage is a joint option and both names are on the deeds.

Thanks

Dun

 

[Sarah W]

If you are both on the deeds you can not get a mortgage just in your name. Have you approached your current lender for a top up? Did you wife's bad credit precede the current mortgage?

Sarah

www.rea.ie

 

[dunsink]

If you are both on the deeds you can not get a mortgage just in your name

Ok, that makes sense, thought as much.

Did you wife's bad credit precede the current mortgage?

I don't believe so, its only really come into play in the last few years.

Another option is to use the upcoming SSIA payout to clear some of the more immediate debts (CC etc), I appreciate that this won't impact all that much on the credit rating issue but it will certainly ease the burden in the short term.

I'm really not comfortable going with the likes of Start and GE although I appreciate that our options are limited for the nect few years

Dun

 

[Sarah W]

You'd be mad (sorry!) to remortgage with a subprime lender when you have the SSIA money to clear your debts. Will there be much deby left when the SSIA has been used? Don't forget you'll have an extra €254 - or however much you were saving - to put towards clearing your loans.

Sarah

www.rea.ie

 

[dunsink]

You'd be mad (sorry!) to remortgage with a subprime lender when you have the SSIA money to clear your debts.

I take your point Sarah, I was hoping to reinvest but circumstances dicate otherwise!

Will there be much deby left when the SSIA has been used? Don't forget you'll have an extra €254 - or however much you were saving - to put towards clearing your loans

After the SSIA is taken into consideration, you're taking about about another 20 grand outstanding. The extra €254 pm will go a long way towards keeping repayments in the green.

I suppose my main issue is that We'll be locked into our existing lender for a few years to come (bearing in mind our credit history). It goes without saying that theres some good deals out there at present, its just a shame that we can't avail of them!

Needless to say, a valuable lesson has been learned here, its easy to let things spiral out of control in terms of debt, what you forget is that it will come back and bite you at some stage. Experience is a cruel master!.

Dun