What Do I Do Know?

trudy27_2

OUR FIXED RATE MORTGAGE COMES TO AN END IN APRIL I HAVE STARTED TO SEARCH AROUND AND NEARLY EVERYONE IS ASKING FOR A DEPOSIT OF ANYTHING FROM 10% TO 30% WE DO NOT HAVE ANY DEPOSIT TO PUT UP FRONT WE HAVE BAD CREDIT AS WE HAVE FALLEN INTO ARREARS OVER CHRISTMAS WITH CREDIT CARDS AND CATALOGUES 2 MONTHS MAX AND ARE REALLY STRUGGLING TO FIND A MORTGAGE COMPANY THAT WILL LEND 90% OF PROPERTY VALUE AT A DECENTISH FIXED RATE - ANY ADVICE!!

catriona69

You'll just go onto your lender's SVR which will probably be lower than the fixed rate you're on anyway. Most are around the 5% mark and likely to drop further as the base rate dropped again today. What's your current fixed rate?

Gorgeous_George

Spend less?

What does your mortgage revert to at the end of the fix? If it is the SVR, what is your current lender's SVR?

GG

feisty1

Quote:"WE HAVE BAD CREDIT AS WE HAVE FALLEN INTO ARREARS OVER CHRISTMAS WITH CREDIT CARDS"

You wont find a new mortgage deal with this history..

Bambywamby

What are your current mortgage lenders offering you? You maybe able to get a fixed deal with them.
If the worst comes to the worst and you can't get a new deal, you will have to stay on your current lenders SVR. Which at the moment will be quite a good deal.

beecher

You don't need a deposit to put up front - your equity counts as the deposit. So if you have an LTV of 90%, you'd be able to remortgage in theory. However your poor credit means that's pretty unlikely. Who is your present lender? They may offer you a deal nearer the time, or alternatively you'll go onto their SVR.

miss_undastood

You have a few options:

1) Do nothing - You will then go on to the standard rate which will be relatively low whilst bank rates are low. It may not be the best deal you can get at the mo, but i think you'll struggle to find better iwth your poor credit history recently and your lack of a deposit.

2) Look into getting a lodger to help pay your bills, you're obviously struggling at the moment and this could lead to you losing your home.

3) Sell up and rent another house; your costs will be fixed, you'll know what you are spending each month and it could allow you to get yourself back on track. That is if you can sell your house.... you could also be risking negative equity depending how long you've had your house, but maybe having a 10k debt outstanding is better than having your home repossessed...

I don't know why everyone is obsessed with owning a home; houses are overpriced a lot of the time, and if you can't afford to stump up a deposit then maybe you are best of to rent until you can get a deposit (As in the long run it will save you a fortune on interest on the mortgage)

I know some people feel that renting is throwing money down the drain, but it is often a lot cheaper than paying a mortgage, and the property maintainance isn't your responsibility.

In short, you need to lower your expenses and keep a tighter control of what you're spending, or increase your income (work more, or get a lodger).
You also need to have a good credit record for about 2 years to stand any chance of getting a decent mortgage offer from a high street lender.

trudy27_2

Spoke to mortgage company they are not offering any further lending or new fixed rate deals it will just fall to the svr hich they cannot confirm what it will be until march whatever it is they add 2% on top

opinions4u

trudy27 wrote: »

OUR FIXED RATE MORTGAGE COMES TO AN END IN APRIL I HAVE STARTED TO SEARCH AROUND AND NEARLY EVERYONE IS ASKING FOR A DEPOSIT OF ANYTHING FROM 10% TO 30%

Not ideal.

How much is your house worth, and how much do you owe on the mortgage?

WE DO NOT HAVE ANY DEPOSIT TO PUT UP FRONT WE HAVE BAD CREDIT AS WE HAVE FALLEN INTO ARREARS OVER CHRISTMAS WITH CREDIT CARDS AND CATALOGUES 2 MONTHS MAX

Did you not realise Christmas falls in December every year? To all other readers, please plan for Christmas!

AND ARE REALLY STRUGGLING TO FIND A MORTGAGE COMPANY THAT WILL LEND 90% OF PROPERTY VALUE AT A DECENTISH FIXED RATE - ANY ADVICE!!

Are you surprised?

A combination of circumstances and failure to plan have snookered you and you're stuck on variable rate with this lender.

Make every effort to bring all your debts down, prioritising your mortgage arrears, and then set up a plan (with the help of savings accounts or jamjars or whatever) to pay for next Christmas BEFORE it gets here. Never borrow for a regular and inevitable event.

Good luck.