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Advice please.
ytfcmad
Posts: 387 Forumite
My brother purchased a house in the first quarter of 07 for £265k with an interest only mortgage of £205k.
They have not been making any payments towards the lump sum borrowed.
They have just come off a 3 year fixed rate and gone onto the banks base rate of 4.29% which is better than the original fix by 0.60% and still cant afford to make payments to the lump sum.
The house is now worth around £245k
The household income before tax is £42k and there are 2 young children (no other debts) they also have a poor history with payments and had to come to agreements with cards etc with payment plans prior to getting this mortgage.
What are the options? Can another fix below 6% be obtained, and would the current lender do a valuation for a remortgage and realise the real LTV?
They have not been making any payments towards the lump sum borrowed.
They have just come off a 3 year fixed rate and gone onto the banks base rate of 4.29% which is better than the original fix by 0.60% and still cant afford to make payments to the lump sum.
The house is now worth around £245k
The household income before tax is £42k and there are 2 young children (no other debts) they also have a poor history with payments and had to come to agreements with cards etc with payment plans prior to getting this mortgage.
What are the options? Can another fix below 6% be obtained, and would the current lender do a valuation for a remortgage and realise the real LTV?
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