Advice about the best solution please

Georga_2

I am looking for the best way to sort out some financial mess.

I have been saddled with a huge loan from a previous partner and its finacially crippling myself and my fiance every month.

We are thinking about a remortgage together as the mortgage at the moment is in my name only..

Would be grateful for any advice please on the best way to go about it especially as i fear that due to my ex my credit rating isnt going to be that great.

I have just spoken to a broker and they wanted a huge amount of money if we went with them.

Would an independent financial advisor be best or approaching the normal high street options.

AndrewSmith

Hi Georga

First thing to point out is that without knowing full details I cannot be very specific however I will try to give you the best guidance I can.

Although a re-mortgage may reduce your monthly outgoings in the short term you have to remember that you are then adding a loan to a long term mortgage and will be paying potentially a lot more for it in the long run. That said, it may be your only option.

There is absolutely no reason to be paying large Broker fees to arrange a mortgage for you. There are 'supposed specialist' brokers out there who claim to be expert in the field of Adverse credit or Non-conforming mortgages who will try to charge fees in some cases of up to 5% of the mortgage.

These companies prey on those who have been unfortunate in the past and see them as nothing more than a way to earn a quick buck. They have limited market access and will not try to look at mainstream options for you first.

I would avoid going direct to high street banks etc as they can only offer advice based on their own critera and products, whereas a whole market broker can look at a much wider array of options for you, and will have the market knowledge to know who is likely to accept the case before submitting it to a lender. If you submit to too many lenders, the resulting credit searches could be detrimental to the integrity of your credit file.

WHat sort of figures are involved, and what sort of possible bad credit could there be?

Many thanks

Andy

stanmoresaver

Your best bet would be a "whole of market mortgage broker"

Going directly to different banks is a random way to try and get the best deal- Not sure what you class as a "huge amount of money" but, excepting that everyone is entitled to have a different business model, you should be able to find one who's fee is acceptable to you and certainly doesn't charge you an up-front fee.

take a look around this forum- there are loads of threads regarding the use of brokers.

Hope this helps

SS

herbiesjp

Georga wrote:

I am looking for the best way to sort out some financial mess.

I have been saddled with a huge loan from a previous partner and its finacially crippling myself and my fiance every month.

We are thinking about a remortgage together as the mortgage at the moment is in my name only..

Would be grateful for any advice please on the best way to go about it especially as i fear that due to my ex my credit rating isnt going to be that great.

I have just spoken to a broker and they wanted a huge amount of money if we went with them.

Would an independent financial advisor be best or approaching the normal high street options.

Have you got a copy of your credit report from Equifax or Experian? This may show up for both of you what your credit rating is like - better to know up front, if you think there may be something on there that could cause problems.

Georga_2

Hi

Thanks all of you for your quick reply.

About the loan- I was talked into taking out a secured loan on my property with my ex and as he was on a good salary and so was I we decided to take the loan over 10 years for £35,000 so it would be paid off quicker. Within two weeks of the money coming through he disappeared never to be seen again and so have been struggling to pay this loan plus my mortgage for over a year now.

Been to solicitors but as i cant find him there is nothing i can do about it. The loan people have been very unhelpful.

My Fiance and I are trying to save for a wedding as well as all the other out goings so thought putting them all into one mortgage would be the way to go but not so sure now.

The credit problems likely to face are one or two missed payments on cards but these have always been paid up to date.

All advice would be gratefully recieved.

Thanks

Georga

AndrewSmith

The main thing that will determine to you whether it is worth it is going to be the level of possible saving that you will make on a monthly basis by consolidating.

At the end of the day if you are struggling with the monthly payments then consolidation may be your best option before you begin having problems and missing payments etc.

I had an ex-girlfriend who did something similar to me. Never did find her. Oh how the law favours the innocent !!!

What is the value of your current home, existing mortgage, and your earnings (roughly)?

Cheers

Andy

Georga_2

Hi

Thanks again for you reply.

The current mortgage on my house is £121,500 ish and the value is now about £175,000- £180,000.

I earn in the region of £24,793 between 2 jobs and i have additional yearly income of £3,461 from Maintinence, Tax credit and Family allowance.
My Fiancee earns £23,000 per year.

If i remortgage i will have some redemption to repay as well but i was told that sometimes its better to pay that now as potentially i could save in the long run.

Thanks

Georga

herbiesjp

What do you pay currently each month?

How much £ per month for each mortgage/loan?

What are the interest rates payable on each mortgage/loan?

Georga_2

Hi

I pay £476.00 per month at the moment and that is on interest only as i spoke to the mortgage people and because of the situation i was in, we decided i would go interest only for 2 years to help me out and then go back onto repayment. I think the rate on this is about 5%. No more than that anyway.

I pay £606.08 per month for the loan and that was taken out over 10 years and i have been paying it for over a year now. I cant remember exactly the interest rate but i know it was a little higher than the normal as i had some arrears on my mortgage at the time. These have now been paid off.

Thanks

Georga