Really worried about being able to pay mortgage

Smurggle

Hi everyone, I need some advice. I am with the Halifax at the moment for my mortgage and have a great rate that is finishing at the end of the year. We wanted to fix our rate as we are trying to deal with our massive debt and I need to be able to budget. I worked out that I could afford one or their rates and went to reserve it but was told that I couldn't until October 1st (three months before our current deal ends), I have now just found that all of their deals have changed over the weekend and we fairly much wouldn't be able to afford any of their rates for existing customers.

My question is really, could I apply for any of their deals or just the ones for existing customers? I have been working so hard to try an sort our finances and now I feel like I'm back at square one, we are so close to the edge and just haven't got the money to pay more on our mortgage. We can't get another mortgage as our credit rating is a bit pants so that isn't an option.

Cheers for any help/advice

herbiesjp

You will have to take one of their deals for existing customers - what deal had you been looking at?

What figures are you looking at i.e. property value and mortgage amount?

Are you on a repayment mortgage?

If so, you could go onto interest only and make regular overpayments of an amount you are comfortable with each month.

It may not reduce the mortgage as quickly, but at least it gives you control over how much you can overpay each month

Have you spoken to a broker?

Smurggle

Hiya,

the deal we wanted was 6.09% fixed for three years. Currently we have £168000 at 5.49% on interest only, our house is worth about £190000 we think (it was a new estate and non of them have sold again as yet). We have a lot of debt that we are trying to pay off and as we are young we thought interest only was an OK idea. Also I got my PhD earlier this year and we though I would be able to get a better paid job but it turns out that I have to make the choice of well paid fixed term contract (2 years or less) or not very well paid permanent, so I chose the latter. I am really scared of using a mortgage broker as we made 2 applications for a remortgage earlier in the year (which wasn't very clever of me) and I think that has caused our credit rating to plummet. I really don't know where to go from here.

herbiesjp

A broker will be able to get you an illustration straight away from Halifx and tell you what they have indexed your house value to be.

That will be important as it will affect what deals will be available to you.

Not sure why your credit rating will have plummeted due to using a broker, but it may well be worth having a word with a broker to see what deal that can get with Halifax for you

Have you got an up to date copy of your credit file?

Smurggle

Hi, we made the applications for mortgages ourselves, I am scared of using a broker as I think we will be told that we have no chance of remortgaging and we have to stay with Halifax. I have an up to date copy of my credit score and it is really low, I am not sure why this is, there have been a few searches and I appear to have 34 aliases! but I don't really understand whether that affects anything, I don't know what my husband's score is either.
I just feel like I'm in a flat spin at the moment, I can't even concentrate let alone be sensible. Can I still use a broker (and not get charged) if I am just changing deals with the same mortgage company?

herbiesjp

Smurggle wrote: »

I just feel like I'm in a flat spin at the moment, I can't even concentrate let alone be sensible. Can I still use a broker (and not get charged) if I am just changing deals with the same mortgage company?

Yes you can

That was my point - and by doing so you may have access to different deals, but also they will be able to tell you very quickly what mortgage figures and property figures you should be using

Smurggle

OK Thank you, I will just have to find a mortgage broker then. I am not usually this slow but I think I am in panic mode.

herbiesjp

Lol :rotfl:

A nice cuppa will put you right!:D