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Remortgage for Home Improvement with a Bad credit score

Last post Tue, Oct 15 2013, 11:04 PM by Zeb. 1 replies.
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  •  Tue, Oct 15 2013, 11:04 PM

    Re: Remortgage for Home Improvement with a Bad credit score

    The first thing that needs to be know is when you had your problems and how far did the problems escalate?

    I can only assume by the way you are talking in your post that you gained a default at least because of your financial difficulties.
    When this default was placed against you is the key thing in this as a default will remain on your credit file for a period of 6 years from the date it was placed. It cannot be removed unless the provider agrees that it has been placed in error and from what you have said this almost certainly will not be the case. Clearing the debt and having a zero balance will not remove the default marker but will have it marked as "Satisfied" which is a lot better than "Unsatisfied".

    A "Notice of Correction" will only stop an automatic decline by automated scoring processes, it will cause any application to "refer" and this means that it will be looked at and reviewed by human eyes instead of auto scored. Once reviewed it will still remain clear that the default was correctly placed and the default remains and the decline decision will still result.

    There is no realistic way forward for you at present. Some lenders may just consider you with a default in place that is marked as satisfied, some will not....it really depends on the lender. Having more equity in your property will always help as lower loan to value mortgages are scored with a little more leniency than high LTVs as they pose less risk to the lender.

    If the default is 3+ years old then I would contact a mortgage broker and have him assess the position. Take a copy of your current credit report with you and he can make a professional assessment on whether it is worth speaking to another lender who may be able to help you or whether you should wait longer....if your credit score is showing as porr then i would not attempt to find another lender, put your plans on hold for a while.
    • Post Points: 5
  •  Tue, Oct 15 2013, 1:17 PM

    Remortgage for Home Improvement with a Bad credit score

    I have a query about remortgaging however it first really requires some back story.

    I have previously had a loan and soon after taking it out, I lost my job in unfavourable circumstances and for various reasons was unable to claim on the PPI that I had been sold.

    I was unable to claim JSA due to the fact that I was fired from my employment "at my fault", which was untrue, but was my word against employers, and that my (newly married) wife was in full time employment.

    So naturally, this caused some financial difficulties for me and my wife. However, throughout everything she kept on top of her financial commitments and between us we did our best to improve mine, payments where possible. Until we received an inheritance from her family to enable us to put a deposit on a house, sell our houseboat and settle my debts in full.

    Since then, both our finances have only improved, however whilst her credit file improves, mine is stagnant and marked with the bad score from this loan.

    We bought our house in 2011, in need of some work whilst at the bottom of the market with a substantial 30% deposit, since that date our house value has increased by a suggested £30,000 by Zoopla, and we have paid off more than the required payments every month since.

    We now wish to make further improvements to our home, with the hope of starting a family and as such want to remortgage to release equity to enable us to build an extension, replace our windows and doors and replace our boiler. However due to my credit history the mortgage company still refuse to put my name on the mortgage and consider my wife’s income as insufficient to remortgage.

    I feel my only option is to put a NOC on the file; however I am worried this will make no change and will only cause problems getting car insurance quotes etc online. What really are our options? Normal 0 false false false EN-GB X-NONE X-NONE MicrosoftInternetExplorer4
    • Post Points: 20