Remortgage ex local council property, help!

Angelboots

Hi Guys,

Its been a long time since ive posted on here, becuase all has been a ok, up until this morning. When i sadly became a victim of the credit crunch, now i know it will eventually impact us all .

Here is my dilema.

I have a flat which is on the 4th floor of a 10 floor block, and is ex local authority. I was planning to to remortgage close to the end of my fixed period, which is next month.

Unfortunately my broker has informed me today that with the criteria of my flat there are no lenders on the market that are willingly to lend on my type of property.

This means that as of next month i will be hit hard by paying a rate of 9.1% which is absolutely criminal so in monetary terms, i will be paying an extra £100 a month on interest only.

My current lender have told me they can check whether or not i can afford the increase, which in theory i can, but i would rather spend that £100 on the capital of the mortgage, food, savings etc rather than put it directly into my lenders pocket :mad: .

Does anyone know of a lender that is willingly to lend on my type of property.

your advice as always is greatly welcomed.

K

herbiesjp

Who is your current lender?

At 9% I'm guessing it is not a mainstream lender

You can still find lenders that wil lend on ex local in high storey blocks, but it will also depend on the mortgage amount and value of the property along with the income multiples needed

sarkin

herbiesjp wrote: »

Who is your current lender?

At 9% I'm guessing it is not a mainstream lender

You can still find lenders that wil lend on ex local in high storey blocks, but it will also depend on the mortgage amount and value of the property along with the income multiples needed

and credit score, with a rate that high it sounds like LIBOR +

Who is the lender?

Angelboots

My lender is Preferred/ Capstone. Had to go to a sub prime lender because its in ex local authority the amount of floors in the entire building and also because its made of concrete (dont know why they are so specific about the material its constructed with, any feedback would be welcome).

In terms of the multiples and loan to value there are no problems there, i have about 30% equity and my salary can cover it.

Just need a lender that will lend on my type of property! its seems they have all left the market.

herbiesjp

Concrete build as well can cause problems

But i take it your credit history is fine

I'd suggest talking to another broker for a second opinion as the situation could be tricky. Give them all the information and they should be able to come back pretty quickly with any options if there are any