Re mortgage - adverse with arrears..

us,thecat&thedebt

hi all,

well after a long break im bck.. situation has changed drastically in last 6 months and things have gone a lil pear shaped .. id like to mention this before anyone feels the need to make unhelpful remarks..

one thing after the other and my finances have come crashing down and sprialled out of control! but im on top of it now (well will be with some friendly advice! )

current situation...

orginal mortgage was for £136k at £745 per month interest only
started May 07
deal expires jan 09 at which point repayment is just under £1000

i currently have 5k of mortgage arrears which i am paying bck at £250 per month alongside the monthly payment of £745

over the last yr i have managed to incur 2 (to my knowledge) ccjs. one for approx 4k which is now registered to my house? i am paying this at £50 per month. and the other for an apparant over payment of housing benefit which i am disputing (from 2005/06)

my property is worth approx £160k (i bought it in may ast yr for £150 ) upstairs is on at £165)

now does anyone know my situation on remortaging?

i woud like to clear my current debts of approx £15k (inc mortgage arrears, car finance and above ccj) and just pay one monthly payment...

im concerned i wont be able to remortage becos of the arrears or ccjs?
if i cant then i worry about the interest rate jumping as i wont be able to afford the £250 increase in the repayments...

my current mortage is with preffered mortgages (capstone group)

any help woud be gratefully appreciated... if you need any further details just ask

thanks in advance

lily

luckyfool

i) I'm not sure how realistic your valuation is. The lenders valuer will assess your property based on recent "sold" prices, which could be significantly different from marketing prices
ii) I'm not sure how many payments will have been missed on your mortgage in the 12 months running up to January 2009. It sounds like it could have been 6 or more.

Realistically if you have had more than 1 or 2 missed payments in the 12 months running up to you remortgaging then you are going to have zero luck.

Equally I would plan to be able to get a likely maximum of 80% on remortgaging (though 90% is potentially available from one or two lenders).

As things stand I would plan on having to pay the Standard Variable Rate with Preferred for at least a few months before being able to remortgage (if then). Ensure that you miss no more payments on your mortgage as that will push back the date when you can eventually remortgage as well.

You should also consider whether you could sell up in January and rent for a time?

us,thecat&thedebt

thank you

yes my current mortgage is 90% on adverse...

selling is not something i want to consider in fear ill never get bck on the property ladder and renting is hard with adverse credit

do u think its worth speaking to preffered in january wen the payment goes up about maybe reducing my arrears payment sightly? being tht they will see my mortgage has gone up and mite make it hard for me to keep up? they have in fairness been very helpful.. i suggested the £250 per month.

thinking if i keep to the arrangement from now til jan it will see im trying?

also the 12 months with no missed payments woud it matter if i sti had some arrears?

luckyfool

Always worth a go. In all likelihood though I suspect they are unlikely to offer you a reduced rate of interest, or a reduced mortgage payment. If you have not repaid your arrears by then they might be willing to accept a reduced contribution to the arrears from that point?

The two things effecting your choice of a new mortgage are

1) arrears - work out when the last payment you missed was. Plan on being with Preferred until that same month in 2009 and work on that assumption, and absolutely make sure that you make all contractual payments between now and then. Negotiate a reduction in the repayment of old arrears by all means, but make sure you make your contractual payments.
2) The ccjs. They will have an impact while unsatisfied and less than 6 years old. With adverse lenders they will normally count them when less than 2 or 3 years old, and assuming they have not been satisfied for at least 12 months. You do not mention how much the ccj for Housing Benefit was? The other for £4k is quite large and will certainly impact on what is available to you. You could find that until 2 years after they were registered you might be limited to an effective maximum of 85% (possibly less depending on credit score).