To leave or not to leave-advice pls!!

Limana68

Hi everyone,
Been lurking for ages and could do with a bit of advice-if anyone can offer any-.

Nearly 6 yrs ago Hubby and me had a really bad debt problem, owed approx 43 K to various lenders, and before we started to miss payments we entered into an IVA, (after firstly being with Baines & Ernst, and paying fees etc- big mistake) and paid this off early in Nov 2004( :j ), after selling our house and using some of the equity to pay it off. Once the IVa was completed we then rented for a while, and decided in Jan 05 to apply for mortgage to get back on the property ladder
. Our IVA supervisor stated he would inform the credit reference agencies about the IVa been completed. However there are some defaults still showing( all creditors now paid off), but we have no CCJs.
So we spoke to a IFA and we found out that most of the High St lenders still wouldnt touch us. Anyway to cut a long story short we went with Rooftop Mortgages,( now E Mex Homefunding), and got a' credit repair' mortgage for £136.800 over 30 yrs..
It is a ' stepped light 90% self cert mortgage'
The mortgage is at variable rate currently 7.88% with a discount of 2.5 % for a yr( 5.38)£ 768 p mth.
Then after 1 yr the discount is 1.5 % taking rate to 6.38. £854 p mth
Then after a yr it goes to 1% discount 6.88% £897. p mth.
After the 3 yrs it goes to 7.88. £985 p mth
If we leave mortgage within the 3 yrs we have to pay 6% of amount repaid approx £8000. After the discount period is up we have to pay 1 % amt repaid or 4 wks notice.
We have been paying the mortgage with no probs as it is 5.38 at the mo but next mth will be going up to £897.Hope to be able to keep up with the repayments.
Anyway, we are looking at moving home and downsizing , basically going to different area, to bigger house for less money and the house is £135.500 so the mortgage needed will be less which will hopefully help us out no end..
We were wondering whether,
1/ now we have paid off our IVA for over 12 mths whether any High St lenders will touch us, so we can get a better deal over a shorter term ( well 25 yrs at most)

2/ whether it is going to make it worthwhile finishing with E mex, and paying the 8K redemption and will it save us money in the long run.

3/ whether to just stick with E Mex, and hopefully our defaults would have 'dropped off' our credit report as it will have been more than 6 yrs, and then get better deal after the 3 yrs.

If we did move and after paying the 8 k, and fees etc we wouldnt have much left in the kitty and would only be able to afford a 5 % deposit, so not sure if any other lenders would give us a 95% deposit. I earn 32K a yr, very secure job, very good pension due in 18 yrs time. Hubby is house hubby, looks after our two kids, but wks part time as a carer around my shifts.( his income varies)
Any views on our situation would be greatfully be appreciated. At the end of the day if we have to stay with Emex then so be it, at least we are on the ladder, but we just want to be able to pay our mortgage off a bit quicker than 30 yrs!

Many thanks in advance.
Limana

Limana68

Have I bored you all to death???????????