3 months left on fixed term deal, with arrears.

Gorgeous_George

woppo26 wrote: »

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

Option 1 - Do nothing
Your mortgage will fall to 4.19% tracking the BBBR at +3.69% (0.5 + 3.69 = 4.19). You can continue to overpay and this will reduce the term significantly.

Option 2 - New mortgage product with your current lender
They will probably not offer you a new deal with your high LTV and arrears. If they do, it may not be the best choice depending on the details of the deal. Worth considering if you need certainty of repayments. If they offer, post the details and ask for comment.

Regards

GG

beecher

woppo26 wrote: »

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

Only once your LTV is below 90% and your credit file has recovered, and as others have said it isn't definite that you'll be offered a new deal due to negative equity. Phone them up and find out, and then head over to the Debt Free Wannabee forum for help in overpaying the mortgage by enough to get into a situation where you have options.