Mortgage Problems

1234

I'm in need of some urgent advice,

My Dad took out a mortgage in 2005 with kensington, around the time of northern rock collapse, i remember him telling me the mortgage had shot up to around £1800 (interest only) per month he said it was approx 9% interest, he then tried to seek legal advice to get out of the mortgage as he felt he was misguided and given incorrect advice.

the problem now is he is paying ridiculous amounts each month and having difficulties making repayments (not missed a single mortgage repayment to date)

In september 2008 he was out of his locked in period and tried to move, he went to Barclays but due to his age they said they would refuse so he added me onto it which they were fine about and offered us a rate of 4.3% repaying £890 per month, my dad has valued the property at £300,000, which we would've accepted once surveying was complete, however once the surveying was done they said they couldnt honour the 4.3% and would have to increase it. I think this was down to overvalueing out property. (most comparissons done when they do a property check on my post code, properties in my area are showing as (325,000+) as a guideline we're valueing this at £300.000.

We then applied with natwest this month, with 3.5% paying £640 per month, we were declined as our credit scoring was low.

yesterday i found out my dad had applied to halifax and was offered a mortgage of around 6.4% around November time. As i bank with Halifax on a routing visit they started asking me about mortgage and how rates start from 2.79% pending certain checks, Yesterday when i was with the advisor I said i would like to apply for this and understand the interest would be slightly different but she said with me being added to my dad's original quote it would go as low as 6.01%.

now to our earning.
I recently graduated and have started my job and earn approx £31,000, Whilst a student i missed a few credit card repayments (payed on time for last 3 years) and have a default notice for a credit account with littlewoods in 2003 which i couldnt pay due to a car accident, this was payed in full 3 month later once i returned to work. I've held my account with halifax for over 9 years and to date i've never missed a payment on Direct Debits which i have/had active.
I'm only paying for essentials at the moment, Student loan, Mobile phone, Cable Telephone/Internet, Credit Cards. my account since 2005 has had a balance of £1000+, I've only gone into overdraft 1 or twice in the past 12 months, but prior to that i've not hit the overdraft since 2002. I also had a student account with an overdraft of around £2500, I am currently paying £100 per month to clear this the current balance is -£1500. I have a car (1997) not worth much but i've not taxed or mot'd this as i rarely drive due to my new job (london) therefore i've sorn'd it and left it on the driveway..

my dad earns £29,000. he's never missed a mortgage payment however due to the high repayment's this has had an effect on other payments he needs to pay and therefore has missed a few.
Most of my wages are given to my dad so that he can meet the rest of his debts on time. he's always in overdraft. I only keep enough to clear all my direct debits and enough to last my travel/lunch costs

I'm just so confused how halifax have a rate of 2.79% advertised but offer only 6%?

me or my dads credit rating may not be the best, but is there anything we can do to get a lower rate?

as an added note, I've not been refused credit for a long time (5 year+) and not failed any credit checks since I tried natwest, even then they got trigger happy and were credit checking me every couple of days to get a credit card i didnt want.

I spoke to my friend yesterday as i was at an all time low, he told me he's paying approx £460.00, I've also read many stories on the internet where people are paying peanuts on their mortgage, what can i/we do to also take up this offer, im worried as barclays said we both had good credit rating however natwest said we got a poor rating. if we go for further applications we'll be declined.

All my earnings go towards to help my parents and family from losing our home, but reality is I cant keep doing this month in month out neither can my dad, My mum is disabled hence why she is not on the mortgage.

with all the interest rates being cuts it feel's like their going up, If anyone can offer me any advice I will be very very grateful.

TIA.

p.s please excuse any spelling/grammar mistakes.

herbiesjp

What is the re-mortgage amount you are looking for?
You are not increasing the borrowing?
How much was the default for?

1234

we're looking for 220,000, no we're not increasing the borrowing,

the default was for £210.

herbiesjp

Well the loan to value is good then

The default is roughly 6 years old and for a low amount, which should be fine with most lenders.

You should be able to find something - have you been going direct to lenders?

If so, stop, as running these numerous credit searches can harm your credit rating.

Have a word with a whole of market adviser and let them find you a good deal - if you discuss what has happened as well, it would be good as it is not really clear why you have been declined based on the above information

Could be a case of simply looking at the wrong lenders

opinions4u

Ok here are a couple of thoughts:

1) The Halifax rate sounds like a 5 or 10 year fixed rate. Based on the fear of rising rates it doesn't seem unreasonable, although there may be better ones in the market. Does he want a cheap short term tracker, or a more expensive fix with longer term guarantees? Sounds like the latter to me.
2) Stop trying lender after lender and racking up the credit searches. If you need to shop the market use a reputable local mortgage broker.
3) Just because Mum is disabled doesn't necessarily mean her income, pensions or benefits (or certain benefits) cannot be used.

You should consider my 4th point very carefully.

4) Why do you want to use your income for this? You are giving away YOUR future to your parents' debts. I personally think it is time to review their outgoings and consider the reality of moving downmarket to a lower value house with less debt that they can afford off their own incomes.

Your current plan to use your income to support this commitment will stop you getting your own home in the future.

1234

i've gone directly to lenders, I recently checked my credit file, as i mentioned earlier natwest decided to credit check me on different dates without my authorisation, i filed a complaint and they said they are writing to the CRA to remove these checks (not sure if it is possible), When i applied via Barclays they did say they credit checked me and my dad however this was not shown ni the report.

1234

opinions4u wrote: »

Ok here are a couple of thoughts:

1) The Halifax rate sounds like a 5 or 10 year fixed rate. Based on the fear of rising rates it doesn't seem unreasonable, although there may be better ones in the market. Does he want a cheap short term tracker, or a more expensive fix with longer term guarantees? Sounds like the latter to me.
2) Stop trying lender after lender and racking up the credit searches. If you need to shop the market use a reputable local mortgage broker.
3) Just because Mum is disabled doesn't necessarily mean her income, pensions or benefits (or certain benefits) cannot be used.

You should consider my 4th point very carefully.

4) Why do you want to use your income for this? You are giving away YOUR future to your parents' debts. I personally think it is time to review their outgoings and consider the reality of moving downmarket to a lower value house with less debt that they can afford off their own incomes.

Your current plan to use your income to support this commitment will stop you getting your own home in the future.

I have no choice in the matter,either i help or we have no where to live.
I think he wants to go for a tracker.

opinions4u

1234 wrote: »

I have no choice in the matter,either i help or we have no where to live.
I think he wants to go for a tracker.

Tried living in a £150k house with a £70k mortgage?

herbiesjp

1234 wrote: »

i've gone directly to lenders

You might want to go via a whole of market adviser.

It should help with gettinga mortgage agreed first time around, rather than applying and being declined due to criteria i.e. too old