remortgages? need help please

steph3008

Hi there

i am new to all this an would like some advice on what to do, my opartner and i took out a mortgage with GMAC (now Advantage morgan & stanley) interest free( only thing we could afford at the time) 2 years ago at an interest rate of 6% but the fixed term in now endin in Jan 09. our credits are not very good as we're on a debt management plan. and are paying £300 a month for that... we dont know what the best thing to do are we gonna get a 100% remortgage now with the economy like it is, should we ride it out on the interest only, or are we gonna be able to get a remortgage and if so who are the best company to help us with a remortgage?

thanks

Steph

Heyman_2

steph3008 wrote: »

Hi there

i am new to all this an would like some advice on what to do, my opartner and i took out a mortgage with GMAC (now Advantage morgan & stanley) interest free( only thing we could afford at the time) 2 years ago at an interest rate of 6% but the fixed term in now endin in Jan 09. our credits are not very good as we're on a debt management plan. and are paying £300 a month for that... we dont know what the best thing to do are we gonna get a 100% remortgage now with the economy like it is, should we ride it out on the interest only, or are we gonna be able to get a remortgage and if so who are the best company to help us with a remortgage?

thanks

Steph

Steph,

There are no 100% mortgages any more, and there aren't likely to be again for some time, if ever, given what's happened with the banks.

What is your plan for paying your mortgage back? If it has anything to do with using equity in your home through rising prices, you will have a problem as house prices are now at the beginning of what could be a long decline.

Financially, you would probably be best off trying to sell up and then rent somewhere cheap while you get your debts paid off. Then save up a good-size deposit to buy again. Hopefully after you've done all of that, house prices will have come down to the point where you can get an affordable repayment mortgage.

feisty1

steph3008 wrote: »

Hi there we're on a debt management plan.
thanks Steph

Steph, who is yr debt management plan with? was it set up by 1 of these companies who take up front payments & take a huge whack from the amount u pay each month?

steph3008

feisty1 wrote: »

Steph, who is yr debt management plan with? was it set up by 1 of these companies who take up front payments & take a huge whack from the amount u pay each month?

Our debt managment plan is with debt free direct.. we really dont want to sell up as we are aware that we are going to be owing the mortgage company money, we are able to afford the payments for our mortgage and in the last 2 years haven't defaulted on our mortgage but just dont know what to do... i even thought about phoning out mortgage company an asking them what they would suggest an wiether we could change our mortgage to a repayment but they are not accepting any applications for new finance they've stopped doing mortgages or something.. sorry not really clued up on this thats why i have come to you lot!

feisty1

u will most likely have to stay with yr existing leder on svr... try & reduce yr debts that is most important & check what proportion of yr mothly payment is going towards reducing yr debts & good luck

Heyman_2

steph3008 wrote: »

Our debt managment plan is with debt free direct.. we really dont want to sell up as we are aware that we are going to be owing the mortgage company money, we are able to afford the payments for our mortgage and in the last 2 years haven't defaulted on our mortgage but just dont know what to do... i even thought about phoning out mortgage company an asking them what they would suggest an wiether we could change our mortgage to a repayment but they are not accepting any applications for new finance they've stopped doing mortgages or something.. sorry not really clued up on this thats why i have come to you lot!

Your viable options are basically -

1. Stay in your home, paying your interest free mortgage to your existing lender at the new SVR rate.

2. Stay in your home, change your mortgage with your existing lender to a repayment mortgage on the SVR (they should allow you to do this once your deal period finishes).

3. Sell up, pay off your debts, and wait for a good time to buy again.

Merlot

steph3008 wrote: »

Our debt managment plan is with debt free direct.. we really dont want to sell up as we are aware that we are going to be owing the mortgage company money, we are able to afford the payments for our mortgage and in the last 2 years haven't defaulted on our mortgage but just dont know what to do... i even thought about phoning out mortgage company an asking them what they would suggest an wiether we could change our mortgage to a repayment but they are not accepting any applications for new finance they've stopped doing mortgages or something.. sorry not really clued up on this thats why i have come to you lot!

Debt Free Direct.....NO NO NO:eek:

You should be using a debt charity like CCCS or National Debtline, they won't take a fee each month like DFD, you must take action on this today.

Never ever pay for something which you can get for free. http://www.cccs.co.uk/



Merlot.x.