What to do??!

licious

Hi, I'm new to the Mortgage thread, so please bare with me :rolleyes:

Anyway, we are currently 2 years into a 3 year fixed rate mortgage deal with Accord and have been paying on a rate of 6.44%. This deal ends next December (2010). The query I have is, for the past few months I've had a few issues with paying back my unsecured debts.....never actually missed a payment but have defaulted due to late payment. Now I know that my credit rating will probably be shot to pieces now, so my question is:

When the deal ends, I'm presuming that the interest rate will go down (hopefully?!) so am I better off staying with Accord or should I look for a better deal....knowing that my credit rating isn't too hot?!! Also, I think we will be in negative equity??!

Sorry if this is a stupid question, and I know that we can't see into the furture with regards to interest rates, etc, but would really appreciate some advice.

Thanks, Licious xx

_Andy_

Hi Licious

If you're in negative equity then you won't be able to change mortgage lenders.
You would need to check with Accord as to your options in terms of new rates.

Caz3121

With a year to go on the deal, much will depend on what LTV you are looking at when your fixed rate is up. Currently there are no 100% deals an if you are in neg equity your only option may be to stay on Accords SVR until you have enough equity to shop around for a deal

licious

Thanks very much for your replies!

I know it's another 12 months away, but I worry (

Thanks again!! xx

notlongnow_2

My fixed term ends next year and it is inceasing my payments by £250 a month. So id search your paperwork to make sure you wont be in the same situation im heading for.

benjo

I think Accord Mortgage SVR is around 5.34% - if your deal reverts to svr, then your payments will go down, assuming the svr doesnt go up in the mean time.