Sub prime Mortgages

kathryn123_2

We have a sub prime fixed rate mortgage that comes to and end 1st October & we would really like to fix again, However current lender have no fixed deals available & the broker we have asked said there are currently no sub-prime lenders offering new lending. The SRV is very attractive at the moment but we are worried about the future. Does anyone know of a lender willing to help?

Conrad

Kathryn you don't say whether you want 95% or 50%, nor what your sub prime history is, so any meaningful response is impossible.

As a general observation it is true that sub prime lending is very scare. A couple of lenders can consider up to 80% but the rates are only 'ok' below 70% really.

I expect new sub prime deals to begin appearing in 12-24 months based on conversations I have face to face with lenders (as opposed to internet hearsay nonsense)

Mrs_Bumble

As per Conrad's post above, why is your current mortgage sub prime, loan to value etc

kathryn123_2

Sorry i should of said (i'm new) The house is worth approx £240k, mortgage is 55k interest only & 55k repayment. we have never ever missed a payment or had a late payment in 24 years but we do have approx 54k of unsecured debt.

Mrs_Bumble

But why are you currently placed with a sub prime lender? What household income is there?

kathryn123_2

Because we are on DMP for unsecured debts. House hold income 50K

Conrad

The exact details of the DMP will need to be underwriten. On face value given limited info you could potentialy remortgage with a rate something like 4.7% LIBOR tracker (meaning a volatile rate) or fix at about 6%.

Having said that a DMP may not show up....................... although strictly speaking you are suppoed to declare such arranngments, but some would argue a responsible adult borrower ought to obtain the best deal for thier family's sake

kathryn123_2

I cannot seem to find a lender to help. Also although on DMP which we have never missed a payment on, one creditor refuses to accept the offer so keeps defaulting me each month.

Wutang_2

kathryn123 wrote: »

we have never ever missed a payment or had a late payment in 24 years .

It would appear that you have a few missed payments with that one creditor...

kathryn123_2

No we haven't missed any payments, they keep defaulting me because they will not accept our offer unless it comes from a DM company & we are therefore not paying the amount they want us to pay.

Wutang_2

kathryn123 wrote: »

No we haven't missed any payments, they keep defaulting me because they will not accept our offer unless it comes from a DM company & we are therefore not paying the amount they want us to pay.

Technically you have missed payments every time they refuse your offer - they are not defaults. This will eventually become a default in its entirety but if you check your credit report it currently will be classed as missed payments.