Is GMAC any good? Good or bad for mortgage?

SilverLining_2

Hi
I currently have a £61000 mortgage with Abbey but am in over £48000 worth of debt with default notices going ahead.
The only way I can get rid off this debt is to remortgage.
As i was unemployed for 5 months (hence the debt (back in employment now) Abbey wont lend anymore money.
I have been with debt free direct who advised the only way out is to remortgage and they found me GMAC who is the only avilable lender due to my circumstances.They will lend me the money to clear my debts and to pay off Abbey with a repayment of £671 per month.
Does anyone know much about GMAC as i ve never heard of them before and im petrified that that amount will change each month also i really dont want to lose the house due to extra charges etc.
The only other option i have is to sell my house but if i do, i will only have £40000 left to find somewhere else to live (im in the middle of home improvements to up the value of my house)

Any help much needed thanks

herbiesjp

SO yu have no bad credit registered against you as yet but it is pending, is that correct?

If so write to the creditors to advise them that you will be clearing the debts shortly.

Why is Gmac the only lender that will help you - have they told you why?
What rate will you be paying? Is it fixed or variable?

Gmac are in themselves an ok company if used for the right reasons

What is your property value?
Total mortgage needed?
What is your income?

Iona_Penny

I think that you will pay a much higher rate of interest with GMAC than with high street lenders, and what you find is that they take on individuals like yourself who have trouble borrowing from 'regular' lenders.
What will yor total borrowing be? at what rate? for what period of time?
Is further borrowing really the only way in your situation? Not criticising just wonder if someone will have better idea than going down this route with this lender.

itsbeef

SilverLining wrote:

Hi
I currently have a £61000 mortgage with Abbey but am in over £48000 worth of debt with default notices going ahead.
The only way I can get rid off this debt is to remortgage.
As i was unemployed for 5 months (hence the debt (back in employment now) Abbey wont lend anymore money.
I have been with debt free direct who advised the only way out is to remortgage and they found me GMAC who is the only avilable lender due to my circumstances.They will lend me the money to clear my debts and to pay off Abbey with a repayment of £671 per month.
Does anyone know much about GMAC as i ve never heard of them before and im petrified that that amount will change each month also i really dont want to lose the house due to extra charges etc.
The only other option i have is to sell my house but if i do, i will only have £40000 left to find somewhere else to live (im in the middle of home improvements to up the value of my house)

Any help much needed thanks

I believe GMAC are owned by General Motors and tend to be the last port of call for people who have problems raising funds through mortgages.

I was in a situ 2 years ago when tryiong to buy out ex-g/f from jointly purchased property. GMAC offered a self cert but later sold the mortgage to the West Brom BS.

Never had any problems when talking to GMAC and they were clear and straight forward with everything

Good luck.......

SilverLining_2

Hi again, thanks for the quick replies...
I have had my creditors write to me numerous times explaining that as im in arrears with missed payments etc that they will file for ccj's, i have wrote to my creditors explaining that i can only pay so much and some are ok with it others arent.
According to debt free direct, they transfered me to first choice finance who then explained after numerous searching that because of my situation, GMAC are the only available lender who could help as ive not been in employment for more than 3 months,my current salary and my credit history.
The rate Gmac have given is interest only fixed rate for 3 years, based on 21 years.
My property value is £157000 at present
Mortgage needed to clear debts and current mortgage £115000
Current salary £15000
Also im wanting my partner to have joint mortgage with me as the deeds are solely my name, he earns £21500, Abbey have said re this that they will look at this application after i have had 3 full months payslips and 3 full months up to date mortgage payments.
What other way is there to help my situation? if any..

SilverLining_2

Also, debt free direct have also advised that i could have IVA if no other way out, but as Gmac are willing, they say thats the only option.
I really dont want to be pressured into Gmac if im going to come out worse.

herbiesjp

without knowing your full details on missed payments, amounts owed and exact number of defaults it is difficult to say.

But Gmac are fine as a lender provided they are being used for the right reason. Here it would appear that they could be right for you. The deal is fixed and has no extended penalties.

There are some high street lenders that have started to look more sympathetically towards adverse credit, and sometimes can offer some better rates, however without knowing your details, I cannot say if this would be an option for you.

missk_ensington

I'm with GMAC and don't have any quarms about them, although I think they tend to accomodate 'non standard' mortgages mostly, as mine is a Self-Cert. Think they specialise in bad credit, self employed, discharged bankrupts.... hence why they will take you on.

Though for their services you will pay a higher interest rate, as a FTB I should have been able to get a great rate but instead Im paying 5.54% fixed for 2 years and then it goes up 2% to 7.54%! And thats assuming interst rates don't rocket!

SilverLining_2

All together i have £48000+ debt, this includes loans credit cards and catalogues. 6 debts are with the debt collection agencies and 5 are still with the companies i have the cards with.
In the last 5 months i have missed payments on all 11 by not being able to pay the full minimum, i have agreements with them all about the little i can pay but is only for 1 more month before they go to the full minimum again. All companies have threatened legal action such as court appearances and ccj's but ive not received anything as yet due to the agreements. Im defaulted as i have done a credit history report recently. The only one im paying the full amount for is my current mortgage but if im unable to make the full payment that month, i pay it the following, so im never more than 1 month late

missk_ensington

Is it a good idea even getting a mortgage? Can you not live cheaply with someone/family and get the debts paid as much as possible? Or declare bankruptcy and then in a year when you;re discharge go back to GMAC and get a mortgage.

They specialise in discharged bankrupts, and at least then you can concentrate on your your mortgage, not other debts

Xbigman

SilverLining wrote:

My property value is £157000 at present
Mortgage needed to clear debts and current mortgage £115000
Current salary £15000

Hang on. A 115,000 mortgage on 15k is close to 8 times income on a sub prime mortgage rate. Are you all insane? That is unsupportable.

And no one seems bothered that the OP is proposing to take, what I presume is, unsecured lending and secure it on their home.

SilverLining - please go to the debt free wannabe board and post your full details. You will get a lot more sensible advice than you have recieved so far here.

Now as this is the mortgage board I will give you one option. Get your partner to buy some of the property from you. If he bought 30% for 48k your problems would be over.
If you want to know more about that option then others on this board should be able to help as I've never done it that way, but it gets over your debt problem and your poor credit rating problem (assuming his credit rating is ok). You might even be able to do some full and final deals with those debt collection agencies and save some money.
Regards




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