Worrying About remortgage

mrsjonesjuly2010

Hi Guys,

Well I took out a mortgage in February 2007 with my partner.

House was worth aprox £120,000, we have mortgage for £95,000.

Any way we are currently on fixed rate with halifax until Feb 2012..(unsure what exact rate is)

My worry is that the last 8 months or so, I have made quite a few late payments on credit cards.... which are showing as late on my credit file.. my own stupid fault..

Im planning on clearing all my cards before my fixed mortgage ends, as I have a car which i intend to sell.

My worry is, will my late payments affect my remortgage in Feb 2012??
Even if the cards are cleared?

If so would it be best to just go to the svr for a while, when the fixed rate is up?

Any help appreciated.

getmore4less

does your partner know?

These lates will be on for 6 years so the sooner you cleanup the better.

beecher2

Halifax will probably offer you new deals when your fixed rate coms to an end, so remortgaging isn't the only alternative to the SVR.

Hopejack

Yep, those late payments will stay with you for 6 years on your credit file and it's becoming very difficult for those with poor credit to get mortgages. I agree with beecher that it may be best to stay with Halifax once your deal is up - although clearly they may not offer the most competitive rate at the time, most lenders do not do a new credit check if you are just purely beginning a new rate/deal with them after a previous deal has ended unless you are looking to borrow more money ....

ETA - if you decide to go for the SVR then if rates start to hike, you would then find it difficult to get a mortgage deal elsewhere in the next 6 years. As a result, although currently SVRs are cheaper in most cases, I personally would fix/get a deal with the Halifax to cover you.

mrsjonesjuly2010

Thanks for that, as I say im going to clear all my cards hopefully in August of this year anyway.. so hopefully that will help.

Hopejack

It will help you in that you have cleared your debt, but it won't help you with your credit rating over the next few years, the damage is done I'm afraid There are people being refused mortgages for one missed mobile phone payment these days!

At least you have a plan of action for going forward.

mrsjonesjuly2010

Thanks Hopejack, do you think the halifax would offer us another fixed rate mortage?

Hopejack

They will definately offer you some kind of 'deal' whether that is fixed I'm unsure, depends on what they have on offer at the time, could be tracker but they might offer more than one product. If they don't offer a fixed rate you could ask about one and see what they say as they will probably have them. The thing is, like I and others said earlier, if you stay with them they won't do a credit check as you are just remortgaging with them and not asking to increase the loan or anything. Anyone checking your credit file is going to see those late payments and not be too keen to lend you money in the current climate.

mrsjonesjuly2010

Thats Brill, I feel loads better now was concernced that halifax wouldnt want to offer us another deal..

Do you think other lenders still wouldnt offer us anything with the late payments effectively being 18 months old at the time of remortgage & credir cards cleared?

Conrad

Existing lenders are now refusing to switch existing clients to new products where thier credit profile does not fit the risk adjusted profile of the product on offer.

Only by applying to Halifax will you know.

Hopejack

Conrad - since when has this started? I was told by my (new) lender only 2 weeks ago that they do not credit check on a remortgage after a deal has expired. It doesn't matter to me really but it's interesting to know that this is all changing....

I know you know your stuff on here as I've read several of your replies/advice and it's always sound.

BTW - OP, if you read on here, there are mortgage advisers that do say you can get a mortgage with bad credit, it does limit the lenders (not mainstream) and more often than not means a higher rate of interest.