3.99 fixed a good rate for adverse history?

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ferry
ferry Posts: 2,008 Forumite
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in Mortgages & endowments
We are currently with Santander and on their SVR of 4.45 but have had arrears with them under 2 years old and are now cleared .
Online we have been offered a fixed existing customer deal of 3.99 fixed for 2 years.
My heart says to accept this at 3.99 and review matters at the end of the two years but not sure how that compares with other adverse rates out there?
Can anyone please help us with some advice before we commit for two years.

I also assume there will be the fees attached if we decided to sign up elsewhere if that was possible which could make the 3.99 even more attractive?

Thanks as usual for any advice

F x
:j

Comments

  • obay
    obay Posts: 570 Forumite
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    Can you try places like Halifax first? Before jumping on the adverse mortgage lender, try somewhere else!
    [STRIKE]1/12/16 - £152,599.00 [/STRIKE]
    [STRIKE]11/11/17 - £145,990.00 [/STRIKE] <> Overpaid £3916.
    11/11/18 - £142,074.00
    Barclays Car (5.99%)£0/£8,832.37
  • Dandytf
    Dandytf Posts: 4,819 Forumite
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    3.99 is not a bad or extremely high rate at all.

    I'm currently in last few months 5% 5 yr fixed Natwide.

    You have a valid offer from your existing provider lower rate than previous.

    If you move mortgage elsewhere you might run into fees etc.

    I can't make a decision for anyone else though I find your existing offer acceptable.
    Replenished CRA Reports.2020 Nissan Leaf 128-149 miles top charge. Savings depleted. VM Stream tv M250 Volted to M350 then M500 since returned to 1gb
  • ferry
    ferry Posts: 2,008 Forumite
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    Thanks guys, just wanted to check in with you lot before we commit for two years.

    Why does it cost more to live in general when you have/ had financial issues? Everything credit related costs so much more when you're in the worst financial position!
    Sorry just a rant!

    F x
    :j
  • csgohan4
    csgohan4 Posts: 10,587 Forumite
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    it's a matter of risk, someone who have had a perfect credit history is lower risk and therefore have access to better rates, call it a reward in some ways to being good with money in the past.


    Someone who has missed payments and CCJ's are higher risk and there is a chance for repossession in the future, hence why the rates are higher and rightly so, otherwise how it be fair for those who are lower risk subsidise the higher risk?
    "It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"

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  • ACG
    ACG Posts: 23,727 Forumite
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    I can only assume your question is rhetorical. As csgohan says, if I had money to lend out would I prefer to lend it to someone who has paid everything back on time and in full or someone who hasnt...

    To be honest, I do a lot of adverse mortgages for people and those people in the main tend to have learnt from their mistakes and are actually quite switched on about paying their bills and the impact it will have if not.

    To answer your question, it depends on how everything appears on your credit report, but I suspect 3.99% will be there or there abouts. You would need a broker to look for alternatives as no high street lenders will take it on whilst you are still in arrears. That does not necessarily mean higher rates but it probably will do.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • ferry
    ferry Posts: 2,008 Forumite
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    ACG wrote: »
    I can only assume your question is rhetorical. As csgohan says, if I had money to lend out would I prefer to lend it to someone who has paid everything back on time and in full or someone who hasnt...

    To be honest, I do a lot of adverse mortgages for people and those people in the main tend to have learnt from their mistakes and are actually quite switched on about paying their bills and the impact it will have if not.

    To answer your question, it depends on how everything appears on your credit report, but I suspect 3.99% will be there or there abouts. You would need a broker to look for alternatives as no high street lenders will take it on whilst you are still in arrears. That does not necessarily mean higher rates but it probably will do.

    No longer in arrears,
    In a nutshell:
    Mortgage arrears (actually payment arrangements if that make any difference?) about 15 months ago, now cleared and no missed payments since.
    5 accounts in default ( 18 months plus) now paid off as partial settlements and closed on credit file.

    Does that change things?
    :j
  • ACG
    ACG Posts: 23,727 Forumite
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    How much is the property valued at?
    How much is the Mortgage amount?

    When were the defaults registered?

    When were the Mortgage arrears cleared in full?
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • ferry
    ferry Posts: 2,008 Forumite
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    edited 18 March 2017 at 8:43PM
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    ACG wrote: »
    How much is the property valued at?
    How much is the Mortgage amount?

    When were the defaults registered?

    When were the Mortgage arrears cleared in full?

    Thanks again.
    420k value/ 129k outstanding mortgage so 30ish % LTV
    Defaults 1st registered about 18 months ago
    Mortgage arrears cleared in Jan 2016 - noted as 'AR' on credit report?

    Thanks for the ongoing advice
    :j
  • ACG
    ACG Posts: 23,727 Forumite
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    I need to know all of the information requested, but best case scenarion I can find is around 3.2%, but it comes with a £1500 fee so it might be worth seeing if that is better than the 3.99% after fees. If not then the 3.99% probably isnt a bad shout.

    I am off out now but will check back tomorrow...hangover permitting.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • ferry
    ferry Posts: 2,008 Forumite
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    ACG wrote: »
    I need to know all of the information requested, but best case scenarion I can find is around 3.2%, but it comes with a £1500 fee so it might be worth seeing if that is better than the 3.99% after fees. If not then the 3.99% probably isnt a bad shout.

    I am off out now but will check back tomorrow...hangover permitting.

    Thanks, really appreciate it . have a good night lol:T
    :j
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