New fixed rate mortgage, sub prime

jodenice

Well I got a fixed rate mortgage two years ago and I knew it would be hard as I had previously been bankrupt and my partner was on a DMP (I know, I know, we were the ideal candidates!) and we had a good broker and got on a 6.09% mortgage at a cost of £836 per month. its coming to an end and my record isn't clear of the bankruptcy yet and my boyfriend is on DMP so we are not in any better position really. However, got same broker and despite the many filters he had to apply he has managed to get us one for 6.79% (which equates to an extra £70 per month, which I can easily afford and which was my main worry). There are fees of £995 added to the mortgage.

he has advised that it may be better for us to get a five year fixed rate (although there are also options for two year and three year) so that by the time we come off it my credit file will be cleaner and also so that if there are unsteady times ahead I know that I can afford my payments.

My first reaction to this is quite positive, but theres a reason I got into trouble with money and its because I'm a financial imbecile and I wondered if anyone else thought this sounded OK? I do trust the broker and I think he has done a great job but just value a second opinion.

x

minimike2

That sounds too good to be true in your circumstances.

Whats your loan to value? Has he told you what lender it is with?

Wutang_2

its a top rate for a prime mortgage so if thats agreed then do it now!!

JimmyTheWig

Remember you are paying basically a thousand pounds to set up this mortgage. You don't really want to be doing that too often.
Unless you've got a huge mortgage I would go for the five year term.

Sounds a little too good to be true, though.
Is there a tie-in period that extends past the fixed period?

Sammy_Girl

Wow that's a great rate. I'm with a sub prime too - SPML, currently on 6.49% and looking to remortgage March 2009. No bankruptcy or DMP for me, just rubbish credit report, so your offer gives me a glimmer of hope for next year.

I'd bite his arm off for that- great broker

PS what's the LTV?

minimike2

Looking im guessing it maybe Accord mortgages?

Thier criteria for this product is:-

1. No CCJs / Defaults in last 36 Months
2. Max £500 CCJs paid at least 36 months prior to application
3. IVA / Bankruptcy must be discharged at least 3 years prior to application
4. No arrears in the last 12 months.


The DMP will have meant all the accounts within it going into default - how long ago was it set up?

If thats the lender (the only adverse 6.79 with £995 fee deal that i can see) then you must meet these conditions to get that rate. You will have to pay your own valution and legal fees too.

pinksparkle_2

jodenice wrote: »

Well I got a fixed rate mortgage two years ago and I knew it would be hard as I had previously been bankrupt and my partner was on a DMP (I know, I know, we were the ideal candidates!) and we had a good broker and got on a 6.09% mortgage at a cost of £836 per month. its coming to an end and my record isn't clear of the bankruptcy yet and my boyfriend is on DMP so we are not in any better position really. However, got same broker and despite the many filters he had to apply he has managed to get us one for 6.79% (which equates to an extra £70 per month, which I can easily afford and which was my main worry). There are fees of £995 added to the mortgage.

he has advised that it may be better for us to get a five year fixed rate (although there are also options for two year and three year) so that by the time we come off it my credit file will be cleaner and also so that if there are unsteady times ahead I know that I can afford my payments.

My first reaction to this is quite positive, but theres a reason I got into trouble with money and its because I'm a financial imbecile and I wondered if anyone else thought this sounded OK? I do trust the broker and I think he has done a great job but just value a second opinion.

x

I have a fixed rate for another 3 years, but again like sammy says it gives me a good boost to know it wont be that bad...!!!...Well Done.

Minimike thinks its with Accord mortgages, is that right?

When did you start the DMP???

Pinksparkle
x

paulpett

Sounds like a great deal your adviser has found you based on your credit problems

I'd have to agree with Sammy_girl - go for it.

Looks like your adviser is looking after you - might PM you for their details soon if that's ok

Cheers