what should we do?..

Darlinbud

Have posted a few times recently about our remortgage application. We have a default (now settled) and so have really struggled to get a remortgage.
Our mortgage advisor has found a lender but the rate is 8.69%. We need to move quickly so feel we wil have to take it but it;s just such a high rate and will bring our monthly repayments to the very limit of what we can afford.

Does anyone know if this rate is typical for borrowers with a default?
Any advice very welcome.....

herbiesjp

What is the mortgage amount?
What is the property value?
Who is the lender being recommended?

How much was the default for?

Wutang_2

herbiesjp wrote: »

What is the mortgage amount?
What is the property value?
Who is the lender being recommended?

How much was the default for?

A lot of the clues are in the previous posts - I think its 90% but couldnt be bothered to read them all...

and whats your SVR going to be Darlinbud?

Cannon_Fodder

http://forums.moneysavingexpert.com/showthread.html?p=26220655&highlight=#post26220655

Other debts, £26k, in addition to the default...

Can the vital repairs not be tackled without an expensive remortgage?

This rate will not help your overall finances. It is punitive, imo. Its not exactly consolidating onto a cheap rate, which might have made sense.

The problem will presumably be the lender seeing the default, thinking; "you can't manage when you'd got £26k loaned to you, how will you manage with a total of £80k to pay interest & capital on"...?

Suggest you visit the other boards, which can help with cutting expenditure, improving income, making the maximum use of what you do have, etc.

This might raise enough to do the essential repairs, so you can take a bit of time for the default amount to be corrected, and just simply get older so it isn't such an issue to lenders.

Then the extension can be approached with a rate nearer to normal.

Darlinbud

Wutang wrote: »

and whats your SVR going to be Darlinbud?

Sorry - whats an SVR?

Darlinbud

Cannon_Fodder wrote: »

Can the vital repairs not be tackled without an expensive remortgage? .

unfortunately not - the house has no electric/bathroom/kitchen - it's just a shell with a cold water tap in one room!!

Thank you for your advice - Am going to check out the other boards!

Let_Us_See

Are there some replies missing on this post? Doesn't quite make sense.

However, I have never found a lender who will mortgage a property with no kitchen, bathroom or electricity.

getmore4less

Darlinbud wrote: »

unfortunately not - the house has no electric/bathroom/kitchen - it's just a shell with a cold water tap in one room!!

Thank you for your advice - Am going to check out the other boards!

What! lets try to sumarise, looking at the posts

You have £25k of debt (with recent default)

£24k income

an uninhabitable house worth £190k? ( is it really) why buy the place?

You want to do an £60k extension. (what about making it habitable first?)


Why not sell it you can't afford to do it up.

jamief

What happens when interest rates go up?

maninthestreet

As it stands, surely the property is completley unmortgageable??

Cannon_Fodder

In August they only wanted an extension... http://forums.moneysavingexpert.com/showthread.html?p=24555741&highlight=#post24555741

Two months pass, and it needs vital repairs as well... http://forums.moneysavingexpert.com/showthread.html?p=26220655&highlight=#post26220655

All whilst about to have a baby... http://forums.moneysavingexpert.com/showthread.html?p=24709449&highlight=#post24709449


Except, it transpires, they are not so much "repairs", as putting the basics in (or back in).


A better script than most afternoon soaps, I suppose...