3 months left on fixed term deal, with arrears.

beecher

No, Higher Lending Charges can't be reclaimed as far as I know.

I don't know what the Barclays Bank base rate is - if it is the BoE base rate then youll be paying 3.69% plus 0.5% = 4.19% so that'll be a bit better. Can work it out here

http://www.moneymadeclear.fsa.gov.uk/tools.aspx?Tool=mortgage_calculator

payless

Not the cheapest open market variable rate at moment - but not that bad ...
of course if you wanted a fix you may have more of an issue There is a way to hedge- not cheap but its an option available even at high LTV )

woppo26

what sort of rate would i get if i wanted to get it fixed? say for 10 years or so?

_Andy_

woppo26 wrote: »

what sort of rate would i get if i wanted to get it fixed? say for 10 years or so?

Give First National a call and they will tell you what's available.

Gorgeous_George

At 7.94% I make it that your repayments on £91K over 35 years should be £642.38 (rather than £662.17). £663.92 would be a 30 year term. Are you sure it was 35 years?

If you move onto BBBR+3.69% you will pay 4.19% (variable). You will probably not find a better rate by moving to another product or another provider. , your repayment should fall by £200 (£91K over 28 years at 4.19% is only £460.50 and you shouldn't owe much more than thta even with the arrears).

Stick with your current deal.

GG

_Andy_

Also there is an argument for not going 10year fixed with your current lender.
If you believe you can sort your credit out in the next few years then perhaps 3-5 years would be more appropriate, with a view to changing to a mainstream lender after that time.

woppo26

sorry .... yes it is a 30 year mortgage.

woppo26

so basicaly what everyone advises me it to stay with my current lender on a fixed term contract for around 5 years, get my arrears sorted, then il be able to re-mortgage with a mainstream lender?.....have i got that right?

kind regards
Woppo26

opinions4u

woppo26 wrote: »

so basicaly what everyone advises me it to stay with my current lender

Yes. Mainly because you have no choice.

on a fixed term contract for around 5 years

If they will offer you that. They may not have anything for you other than their variable rate.

get my arrears sorted, then il be able to re-mortgage with a mainstream lender?.....have i got that right?

Yes. Not just your arrears on your mortgage. Everything on your credit file. Mobile phone contracts, credit cards, loan agreements etc. Get everything up to date, keep it all up to date. Pay all your bills on time.

It will take a few years, but it could make the last 25 years of your mortgage cheaper and easier.

dimbo61

If you have no other debts except the mortgage then overpay that once you go onto the tracker that your mortgage reverts to at the end of the fix.
You are already overpaying so contact your lender and ask if you can keep the mortgage payment static and this will help clear some of the debt. GOOD LUCK