Northern Rock End of Fixed Rate

LadyT76

Any help would be greatly appreciated.

Our Fixed Rate of 5.99% is due to come to and end in November, and we have been told it will increase to 7.75%.

Our credit is very poor at the moment, and we have debts coming out of our ears, but with 2 very young children and the market at the moment, selling up just isnt an option.

Ideally remortgaging would be the best thing so we could wipe out our debts, and just have the mortgage to pay, but I don't know a) if that is even possible with our credit rating at the moment, or b) if that is the best option.

Any help advice, would be highly appreciated, as I'm almost at the end of my tether!!

Thanks in advance.
LadyT76

firesidemaid

try and keep on the straight and narrow debt-wise (ie. don't miss payments etc) from now on as you will need to apply in a month or two.

what is your ltv currently? that will make a big difference. what is your balance and what do you currently pay per month?

2 other options if you find it difficult to re-mortgage are (for a short while) either increasinf the payment term/years to reduce your monthly cost (better option) or going interest only if you are allowed.

i have no experience of which mortgage cos will be able to be more likely to help you i'm afraid.

hopefully some mortgage experts will be along soon.

LadyT76

Sorry don't know what an LTV is?? Our balance is £160,000 approx and we are paying £900 per month, which is interest only, and paying off some arrears.

The house is worth approx 200,000, that is allowing for the drop in prices, as it was recently worth approx 220,000.

firesidemaid

ltv is loan to value, so yours is 80%.

5.99% of 160,000 is approx. £800 a month - so are the arrears on top/added to this?

it would be worth getting a current balance from your lender. 7.75% on a 160k balance is £1033 a month.

have you undertaken a full statement of affairs either on your own or on this site ie. listing your incomings and outgoings and using this site to help you save money in all/other areas?