Best deal for mortgage bad credit

david_wilson_2

Hi there:

Our mortgage route has always been down the road of using lenders who cater for bad credit.. we are currently with GMAC and are about to capitalise our arrears of £3500 . Our mortage is £135000 we were wondering how to go about getting a fixed rate because prior to the interest rates going down we were at about 8,5% and our payments were about £950 per month interest only. The recession had been really good for us because we are now only paying £435 a month. We are worried if the rates go back up and we are not on a fixed rate.

Can anyone give us some good information.

thanks

dave

_Andy_

Not enough info to go on
Realistically how much is your home worth?
As it's IO, how do you intend to repay the capital?

EDIT: Just re-read - with that amount of missed mortgage payments you're not going to be able to change lender.

Cannon_Fodder

Paying £435 instead of £950, for around a year(?), should put you £6k up. What caused the arrears? Is that situation going to resolve itself?

Capitalising your arrears just defers the problem and spreads it over the remainder of the term, which means more interest is paid than necessary.

Seven months of that reduced mortgage payment could clear your arrears - much better than paying interest on it indefinitely.

If £500 a month has been 'disappearing' from your household budget, then you need to get to the debt-free wannabee board, post an SOA and get inspired to have your light-bulb moment.