Re-Morgaging with a bad credit and CCJ'S also with arrears...

Gaby30

My morgage is due to expire at the end of October and would be very grateful with any advice given..Ive got just over £6,000 on arrears due to Partner being laid off from his last job in which he has been in a new job for 5months. My Morgage company im with at the moment im paying 6.99% they have offered me a new rate of 3.72 which is only for a 3 month period Im debaiting weither its wise to get a fixed rate or not??? Im really struggling with what to do please help!!!! :rolleyes: Gabyx

_Andy_

a 3 month fixed rate? Is there any fee for it?

Mrs_Bumble

Why are they only offering a 3 month deal?

What arrangements have they offered for repayment of the arrears?

With those levels of mortgage arrears you are not going to be able to remortgage away.

happybroker

I feel the 3 month bit maybe the period of validity for the offer of a new rate.

What will the mortgage go to if a new rate isn't taken and who is the lender?

Gaby30

When I spoke to my Morgage company they said that there not a broker but they can give me a rate of 3.72 which they will review every 3months!!!!
I pay £100 each month for my arrears in which they have agreed to im not sure if theirs a charge they said there going to send me a letter
Im so confused

happybroker

I think the rate you are being offered is a LIBOR tracker. If so you will pay a margin over the 3 month London Interbank Offer Rate and the lender will change this every 3 months so it isn't actually a fixed rate. It is probably the rate that you would go to if you do nothing anyway (bit of a guess given I haven't seen the original paperwork).

If the lender is one that can't give you any advice, and if it is a sub primer that will almost defintely be the case, you could speak to the broker that set this up for you in the first place or another who should still be happy to help even though you have no chance of remortgaging.

Gaby30

Are LIBOR Trackers a good option??? Or is that my only option???

_Andy_

With the adverse etc changing lender won't be an option.

happybroker

Gaby30 wrote: »

Are LIBOR Trackers a good option??? Or is that my only option???

I think only option to be fair, sorry I couldn't be more positive. Seek advice though if you are still unsure it's best if someone goes through the original paperwork with you before you "sign up" to anything new

Mrs_Bumble

Who is your current lender?
Do you have your original offer paperwork?
In relation to the arrears your lender should be sending you confirmation of whatever arrangement is in place and whether they are applying charges etc.

This leaflet might help in relation to the arrears
http://www.moneymadeclear.fsa.gov.uk/pdfs/mortgage_cantpay.pdf

And Shelter are able to offer advice on the arrears as well
http://england.shelter.org.uk/

In relation to the Libor it is a tracker and it is set every 3 months, so it is a variable rate. It isn't linked to the Bank of England Base rate at all. Trying to put it simply the Libor rate is the rate at which money is being traded between banks.

As above either go back to the original broker or seek one out for help with the paperwork if you are finding it a bit much.