Help please!Advice on Libor Rate and Self Cert Mortgage

purple-pear

Someone please advise me if you can.

I took out a self-cert mortgage on 2yr fixed which ends in August which follows the libor rate plus 3%, its interest only and for £220,000 however the house is worth approx £200,000 now.

I can currently just manage the morg payments although since taking it out my debts have spiralled out of control mainly sine I was off on maternity leave. I am just in the process of enteing either a debt man paln or iva so which ever way my credit file will be adversly affected.

My problem is when are the rates goin to go up? Does anyone have any idea?
Currently fixedat 6.25% so can afford anything uo to this, just worried about when the rates increase. Will the libor rate increase when the banks start lending again or how does it work? My mortgage will increase by £220 for every 1% rise above 6.25 so u can see my worries.

Dont want to stay here struggle on if the inevitable will happen in next few years and will e stuck with same mortgage comapny who r currently offering no new products. Do u think thy would fix again if I explain to them or is this a definate no no?

Any advise appreciated.

Thanks so Much :mad:

purple-pear

Sorry for all spelling mistakes in last post was rushing!

dunstonh

I took out a self-cert mortgage on 2yr fixed which ends in August which follows the libor rate plus 3%, its interest only and for £220,000 however the house is worth approx £200,000 now.

Crickey. I was scared to read any further after that. Self cert & interest only in the same sentence.

My problem is when are the rates goin to go up? Does anyone have any idea?

No-one knows but a good estimate will be about 12 months from now. Although we could see another drop before it rises.

Dont want to stay here struggle on if the inevitable will happen in next few years and will e stuck with same mortgage comapny who r currently offering no new products. Do u think thy would fix again if I explain to them or is this a definate no no?

If they are not offering any products then they are not going to make an exception for you I'm afraid.

To be honest, you sound as if you would best served by going to the debt free wannabee section as I'm afraid your problems are really deeper than trying to get a fixed rate. You are delaying the inevitable and action sooner or later could save a lot of grief.

_Andy_

Just to echo what Dunston has said above.
The adverse credit is no longer an issue, it's the negative equity. This definetely means you are stuck with your current provider, and unfortunately if they're not offering new products there's nothing you can do about it.
As DH has said, go over to the DFW board and get some advice - especially before thinking about an IVA.
Best of luck with it all.