Mortgage advice please

kremmen

I would just like a pointer before I visit any advisors:-

After going through a divorce and IVA process and narrowly avoiding bankruptcy 3 years ago , I sold home and moved to my current house with the kids...The only mortgage I could get at the time was a sub prime lender. I took the mortgage on an interest only basis
(House bought for £150k ..mortgage £80k).

The lender has a 3 year tie in period which will end in August and I am looking to change (if only to save some interest).

I have NOT got any investment to pay off loan and am pretty sure that I won't be able to increase my payments to start repayment mortgage.

The question is....who should I start with?

Paul

ps current inrerest is £375 p/m

AndrewSmith

Hi Paul,

It really does depend on how the current mortgage account has been conducted, who it is with etc:.

You say that 3 years ago you entered into an IVA. Is this now cleared, what was it for and how much was it for?

What has the rest of your credit situation been like since the IVA?

Are you looking to simply switch rates keeping the amount of mortgage the same?

If you could post some details of the above, and your income status and amount then I may be able to offer some help.

Cheers

Andy

italia

hi paul, from waht you have said your rate is around 5.65 interest only. if you cant increase your payments by much then getting a lower rate and longer term may help. for example https://www.mortgagegenie.com had a 4.39% discount for 2 yrs (discount rates do go up if bank of england base rates go up) which for 80k over 30yrs would be 404 a month. set up fees are around 400. i dont know wether you want fixed istead but mortgagegenie or moneysupermarket.com and charcoalonline are good for searching. i am not sure how IVA's affect this or how long this lasts.

H

kremmen

AndrewSmith wrote:

Hi Paul,

It really does depend on how the current mortgage account has been conducted, who it is with etc:.

The morgage is with Amber and I have never been late.

You say that 3 years ago you entered into an IVA. Is this now cleared, what was it for and how much was it for?

I entered into the IVA about 6 years ago ..before my divorce and it was being well run but the divorce resulted in my income plummeting and I cleared the IVA by selling house and downsizing

What has the rest of your credit situation been like since the IVA?

I have run normal credit history since then and infact I do have 1 credit card (only for clubcard points...I pay this off every month)

Are you looking to simply switch rates keeping the amount of mortgage the same?

I am unsure if I want to keep my payments the same (and perhaps pay off some of the debt ) or just release some income as money is quite tight.
If you could post some details of the above, and your income status and amount then I may be able to offer some help.

I have been employed by the same supermarket since 1984 and earn about £24k a year

Cheers

Andy

Thanks

Paul

AndrewSmith

The rate stated above is not exclusive to Mortgage Genie, and may be with a lender who will not accept a past IVA 3 years ago.

It is pointless searching for mortgage products until you know exactly what is or is not available to you given your circumstances.

I would always be wary of putting personal details into Moneysupermarket as they are one of the UK's largest lead generation companies, selling your details to mortgage brokers for the highest bid via their secondary company PAA leads. They may claim to have their own team of brokers but they do not. You have no idea to whom they are passing your details. Anyone in the industry will know this.

Make sure that you are not 'pushed' towards products with higher fees due to your credit history. There are some firms out there who see adverse credit cases as a 'cash cow'. Lead generation firms such as PAA Leads will sell your details to brokers for up to £200 in some cases purely because of your past IVA.

If you would post the details from my original reply I may be able to point you in the right direction of a lender who may be able to help.

It is pointless looking at rates until we know what is possible.

Cheers

Andy

AndrewSmith

:beer: Ah , beat me to it lol.

Thanks for all that.

Things i your favour are:

Your income and length of service at work.
%age of loan against value (80,000 against 150,000 53%)
Good credit and payment history for 3 years

I would think you have a good chance of acceptance by a mainstream lender, obviously depending upon what you are looking for ie fixed, discount, tracker etc. That is something no-one else can decide for you, you must decide for yourself.

It would also very much depend on your own personal circumstances in relation to the rest of your finances. Without knowing this it is really not possible to say exactly.

However, on the face of it, I would say you have a good chance of success.

Any more help, just ask.

Andy

P.S. Stayed in Bracknell on a training course a few years ago , at the Hilton, opposite Sainsburys. Enjoyed watching the many rear-end shunts on the traffic lights. Nice Indian restaurant in town too. :beer:

kremmen

Thanks for the advice, I feel a bit happier now.
I will have a good trawl around for different figures to see my choices.

I am glad you had a good view out onto the concrete jungle known as Bracknell town centre. The suberbs are mostly a little more scenic.

I know Andover quite well as my Dad lived there for the last 20 or so years and its only about 45mins away.

Paul

AndrewSmith

Wicked,

Where abouts is he?

Im in Enham Alamein

Andy

kremmen

He died 2004.

He lived in The crescent.

Paul

AndrewSmith

kremmen wrote:

He died 2004.

He lived in The crescent.

Paul

Ah

How to put your foot in your mouth in one easy lesson. Sorry to hear that.

Andy

kremmen

No probs...Good innings I think he would have agreed.

Paul