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  • FIRST POST
    • mrbilbs
    • By mrbilbs 4th Jul 16, 2:41 PM
    • 81Posts
    • 22Thanks
    mrbilbs
    What to do?
    • #1
    • 4th Jul 16, 2:41 PM
    What to do? 4th Jul 16 at 2:41 PM
    So about 10 years ago we needed to move house - in hindsight possibly a little naive as we had already paid 10 years of a standard mortgage off our old house.

    In order to get our 'dream house' we started again with a 25 year 95% mortgage on the dreaded LIBOR rate.

    10 years later we still have another 15 years to pay. We currently pay 2.44% above LIBOR that to be honest at the moment doesn't seem too bad compared to some standard mortgages we have seen.

    We were lucky as we had a lower fixed rate during the time LIBOR was at its highest.

    Due to redundancy/illness our credit rating was / and is not great (never a mortgage payment missed though).

    Currently feel like we are possible trapped in this deal without a chance of re mortgaging. Our income is now higher than what it once was so contemplating making over payments to bring the term down or would love to re mortgage but think our chances are nil to none.

    With Brexit and this article I saw today

    http://www.bbc.co.uk/news/business-36703143

    Im just curious as to what your thoughts are?
Page 1
    • ACG
    • By ACG 4th Jul 16, 3:07 PM
    • 13,492 Posts
    • 6,637 Thanks
    ACG
    • #2
    • 4th Jul 16, 3:07 PM
    • #2
    • 4th Jul 16, 3:07 PM
    There is not enough information about the credit history - ie when it was and if it was just late payments or if you have defaults/ccjs etc. Also how much is outstanding on the mortgage and what is it valued at?
    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.
    • mrbilbs
    • By mrbilbs 4th Jul 16, 3:56 PM
    • 81 Posts
    • 22 Thanks
    mrbilbs
    • #3
    • 4th Jul 16, 3:56 PM
    • #3
    • 4th Jul 16, 3:56 PM
    The bad credit side is all historic going back at least 3/4 years ago - currently making reduced payments by agreement via PayPlan.

    No CCJ or missed mortgage / Utility payments ever. mainly CC and loan - missed payments -resulting in default

    Approx £157,000 outstanding on mortgage - similar houses selling for around £190,000+ in our area.

    Hope this helps
    • foxy-stoat
    • By foxy-stoat 4th Jul 16, 4:10 PM
    • 1,173 Posts
    • 650 Thanks
    foxy-stoat
    • #4
    • 4th Jul 16, 4:10 PM
    • #4
    • 4th Jul 16, 4:10 PM
    Your LTV is 83% - am sure you will be able to re-mortgage.
    • cahillg81
    • By cahillg81 4th Jul 16, 4:35 PM
    • 187 Posts
    • 62 Thanks
    cahillg81
    • #5
    • 4th Jul 16, 4:35 PM
    • #5
    • 4th Jul 16, 4:35 PM
    Has the default been settled? It will depend on the value of it some lenders may be willing to look at it.


    Get a copy of your credit report - most lenders use Experian - and seek advice from a broker.
    I am a Mortgage & Protection Broker

    MSE doesn't check my status so you have to take my word for it. Any information posted is for discussion only and should not be seen as advice. I am FCA Registered, registration details available on request.
    • mrbilbs
    • By mrbilbs 11th Oct 16, 4:42 PM
    • 81 Posts
    • 22 Thanks
    mrbilbs
    • #6
    • 11th Oct 16, 4:42 PM
    • #6
    • 11th Oct 16, 4:42 PM
    Sorry I seem to have neglected this. Defaults not satisfied

    We are currently on a DMP with payplan about £50k between two of us on the plan.

    No CCJ or missed mortgage / Utility payments ever. mainly CC and loan - missed payments -resulting in default

    Approx £157,000 outstanding on mortgage - similar houses selling for around £190,000+ in our area.
    • xyz123
    • By xyz123 11th Oct 16, 6:52 PM
    • 1,333 Posts
    • 332 Thanks
    xyz123
    • #7
    • 11th Oct 16, 6:52 PM
    • #7
    • 11th Oct 16, 6:52 PM
    How long is it going to take you to finish pay plan if u have 50k to pay off?

    Any savings u can use to pay off debts? Please be aware of "similar houses selling for...." not all lenders will consider this and independent valuation at ur expense maybe required. What is LTV on purchase price?
    • Thrugelmir
    • By Thrugelmir 11th Oct 16, 7:09 PM
    • 51,268 Posts
    • 43,073 Thanks
    Thrugelmir
    • #8
    • 11th Oct 16, 7:09 PM
    • #8
    • 11th Oct 16, 7:09 PM
    We are currently on a DMP with payplan about £50k between two of us on the plan.
    Originally posted by mrbilbs
    Therein lies your problem. Your credit rating is screwed to be frank.

    Your options are to either settle the DMP quicker. Or overpay the mortgage.

    Your choice as to where your priorities lie. As there's obviously no quick fixes.
    “A man is rich who lives upon what he has. A man is poor who lives upon what is coming. A prudent man lives within his income, and saves against ‘a rainy day’.”
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