What to do?
mrbilbs
Posts: 81 Forumite
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?
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?
0
Comments
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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 AdviserYou 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.0
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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 helps0 -
Your LTV is 83% - am sure you will be able to re-mortgage.0
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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.0 -
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.0 -
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?0 -
We are currently on a DMP with payplan about £50k between two of us on the plan.
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.0
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