Remortaging with adverse credit

zedsdead_2

I wonder if you can help.

My mortgage is coming to the end of the agreed fixed term and like most of you, I'm worried that I may not be able to secure a deal due to the current climate and my history.
My lender, Advantage, is no longer offering new credit as Morgan Stanley is in a fix as many other lenders.
I got into some difficulty a few years ago but through Payplan, sorted out my debts and am will be totally debt/credit free on 31/11/08. My lender at the time new about this and lent me the 230k I needed to buy the house and I have met my obligations on time everytime for the last 18 months.
What concerns me now is, knowing that my current lender will not lend again, I may not be able to secure a new deal in the coming 6 months.
As my rate was 6.29% at the time I secured it I have no qualms with paying the current rate as I (we that is) can cope.

Is there anything I can do to counter the potential devaluation of my property due to market forces and punitive adverse credit rates today?

beecher

Think you need to post salary details, house value (realistic!) and outstanding mortgage amount. You probably need to get a copy of your credit reports too.

zedsdead_2

House Value =229k @ time of purchase
Current Est value ~ £219k (last sale in street was 189k in Dec 07 Similar size but no garage separate dining + off road parking as mine- it was terraced and we are EOT)

Mortgage balance = 211k (at end of fixed term)

Salary Mine: 45k
Salary Hers: 40k
Current Outgoings Combined: 2600/month inc debts, bills, mortgage

Outgoings at end of debt management plan: 2100/month

zedsdead_2

Ps LTV was 95% @ purchase

beecher

If your house is now valued at £219,000 and your mortgage is £211,000 then you won't have a low enough LTV to get a deal elswhere I'm afraid. Most lenders would only lend 90% LTV which is £198000. I suppose there's the possibility of trying to get a 95% deal as you're only £2k short for that, but I'd hazard a guess that your house would be valued at less than £219k by the time you look for deals.

Have you contacted Advantage to see what happens at the end of the deal? I take it you go onto their SVR? Probably best to start budgeting for that, and maybe once your debt management plan is finished you can start overpaying as much as possible in an attempt to get down to 90% LTV - on your wages you should be able to save a significant amount if you cut back.

zedsdead_2

Kak.

Thanks for the advice though. I will do the savings and over payments too after I've checked with Advantage.

beecher

zedsdead wrote: »

Kak.

Thanks for the advice though. I will do the savings and over payments too after I've checked with Advantage.

You should maybe go to see an adviser to see if there are any other options for you though. Good luck.

luckyfool

Even with perfect credit you would honestly struggle to move that to a new lender. Definitely try to start sticking savings away that will allow you to overpay once the deal ends, and potentially remortgage to a 90% or 95% deal in the future.