3 months left on fixed term deal, with arrears.

woppo26

my 2 year fixed term deal is coming to an end with First National. I lost my job and missed a few repayments leaving me with around £5k of arrears.(now back in employment)will i be able to change lenders with these arrears and if so who would accept me? help is needed as my current mortgage repayments are £776 a month for a £91k mortgage over a 35 year repayment........SOMEONE PLEASE HELP ME........

opinions4u

I think you need to find a broker who specialises in sub-prime. Post the value of your property and current income to give them a broader picture.

My initial view? Not a hope in hell of another lender wanting to take on a risk like that.

woppo26

opinions4u wrote: »

I think you need to find a broker who specialises in sub-prime. Post the value of your property and current income to give them a broader picture.

My initial view? Not a hope in hell of another lender wanting to take on a risk like that.

it MIGHT be possiable to clear the arrears before the fixed term is up, would this help, and if so how?

opinions4u

woppo26 wrote: »

it MIGHT be possiable to clear the arrears before the fixed term is up, would this help, and if so how?

In the short term, I doubt it. As time progresses, the longer you have been arrears free the more likely a lender is to consider you.

So if it's not a case of robbing Peter to pay Paul I'd get the mortgage up to date as quickly as possible - it's the first big step to cleaning up your credit file.

_Andy_

How much is your home worth (be conservative)?

woppo26

in the current market id say around £85k

opinions4u

woppo26 wrote: »

in the current market id say around £85k

Your house is worth less than you owe. You can't move your mortgage elsewhere.

Focus your energy on getting your mortgage and other debts in order to rebuild your credit rating.

nw_man

Dont want to be the bearer of bad news Woppo, but if I read this thread correctly, you owe £91k on a property you value at £85k ?

In that case you are stuck where you are, no chance of re-mortgaging.

beecher

Yeah, negative equity is the bigger issue here. You need to pay off at least £14k of your mortgage to get your LTV down to 90% and allow you to get a deal elsewhere.

What will your mortgage deal go onto when the fixed rate ends? Your payments will hopefully come down by quite a bit allowing you to overpay.

woppo26

i have a fixed rate of 7.940% for 24 months, then it will go to 3.690% above the Barclays Bank PLC Base Rate. (at the time of the agreed deal it would have been 9.190%). What would i be payin after my fixed term ends...

on the mortage deal i have it says i will pay £662.17 for the 24 fixed term months. then will increase to £739.83. (im payin more than i should to try and clear my arrears currently £776.35)

woppo26

sorry also i was charged £1,939.00 for a higher lending charge, is there anything that could be done about that as it was added to my mortgage (iv heard that, the higher lending charge could be reclaimed)