RE-MORTGAGE WITH POOR CREDIT HISTORY TO BUY OUT FATHER & ADD HUSBAND TO MORTGAGE ALONG WITH £25,000 DEBT CONSOLIDATION SAVES £565 PER MONTH
In this post we take a look at successfully getting a remortgage despite having a poor credit history.
Our client Mrs W owned a property in Swinton in joint names with her father who did not live at the property and wanted his name removing from the mortgage.
She also wanted to add her husband on to the mortgage and repay both their credit card balances and outstanding personal loans which totaled £25,000 by adding these to the mortgage.
Both Mr & Mrs W were both in their late thirties with Mr W earning £24,000 per year, they had 2 children and Mrs W was a house person.
The property was valued at £ 130,000 with the existing father & daughter mortgage outstanding at £50,000 and they needed a new mortgage of £75,000 in total to repay credit cards & personal loans & existing mortgage.
The total outgoings for the mortgage, credit cards & personal loans was £ 940 per month.
Clients preferred a five year fixed rate so that they could budget for their monthly mortgage payments.
Both Mr & Mrs W had poor credit history – Mrs W had a CCJ and 2 defaults with Mr W having a default all within the last 4 years.
Also as lenders lend on an affordability basis Manchester Mortgages had to find a lender willing to lend based on Mr W sole include bearing in mind they had 2 children and Mrs W was a house person.
After researching the whole of the market Manchester Mortgages found a lender willing to lend the £75,000 required on a competitive five year fixed rate and who was also willing to accept the past CCJ and defaults and consolidate outstanding debts.
The lender offered clients a five year fixed rate at 4.19% with an arrangement fee of £495 added to the mortgage over a 30 year term on a repayment ( capital & Interest ) basis with mortgage payments of £ 375 per month – a saving of £565 per month.
The lender only accepts Solicitors from a limited panel and Manchester Mortgages were able to recommend a local Solicitor on the lenders panel.
Our clients now own the property in joint names and by fixing the mortgage rate clients will know what their mortgage payments are for the next 5 years.
Also by fixing their mortgage rate for 5 years it will mean that when Manchester Mortgages contact our clients to review their mortgage the existing CCJ and defaults will be over 6 years old and therefore subject to clients maintaining their credit commitments we should be able to re-mortgage clients to a mainstream lender at a competitive rate.
All mortgages have some sort of twist to them – we know because Manchester Mortgages deal with them every day – contact us on 0161 706 0242 or send us a message through our contact form on our Web page to discuss your requirements