Mortgage help needed please, completely lost not sure what to do...

GingerAngles

Hey Folks!

I wonder if anybody could help me, or at least point me in the right direction???

I think I need to remortgage, I've been trying to get my finances sorted over the last year and now it's my house's turn!!!

Here's a few details:

Current lender: Mortgagae Agency Services Number 5 LTD
Outstanding balance: £77000
Remaining term: 21.5 years
Current rate: 4.5% on their standard variable rate (I'm closing my eyes tightly ready for someone to tell me that this is an absolutely shockingly high rate! )

I was on a tracker which ended about 18 months ago and at the time I was trying to get on top of my finances and also didn't seam to find anything which was worth moving on to considering the state of the markets.

With regards my other finances, I'm currently on a self-arranged DMP with several creditors and I'm not sure how this will affect my mortgage chances?

I'm also not quite sure where to go, bank, online, broker etc?

Is the rate at the min I have good, bad, shocking? Do I need to change?

Any help or guidence much appreciated as always!

Cheers

GA

Thrugelmir

The SVR of 4.5% is lower than the average SVR across all lenders. So whilst not the best rate in the market considering your current financial credit status an ok one.

You need to clear the DMP to have any realistic chance of remortgaging. Even after its cleared. It will take time for your "credit score" to improve.

Even though you are on the DMP if you have any spare cash use it to overpay the mortgage , however small. As in the long run it will pay dividends.

GingerAngles

Hey, thanks for the advice! I'm glad to hear that the rate I am on isn't to bad!

I'm just worried with the current and predicted finacial situation, if I stay on the SVR it'll go through the roof!?

Thrugelmir

GingerAngles wrote: »

I'm just worried with the current and predicted finacial situation, if I stay on the SVR it'll go through the roof!?

Is your mortgage interest only or on a repayment basis?

GingerAngles

repayment...

Thrugelmir

Then over time. As the capital balance owed reduces. So will the interest charge, and the impact of any change in interest rates. Thats why I previously suggested overpaying however small. As each small step is one closer.

GingerAngles

Is it worth tryin at all for a remortgage to get on to some kind of tracker or fixed rate?

Thrugelmir

GingerAngles wrote: »

Is it worth tryin at all for a remortgage to get on to some kind of tracker or fixed rate?

You've a self arranged DMP which most likely will be detected if you apply to remortgage. As finance houses do exchange information. Your other debts (value?) will also be picked up on a credit check.

The quicker the DMP is cleared then the sooner remortgaging is an option.

Though you haven't said what your property is valued at? As this open up other options.

GingerAngles

To be honest I've no idea at the mo. We had it valued last time we remortgaged, probably 4 years ago, at £110000, but I imagine it wouldn't be worth that in the current market!

Thrugelmir

GingerAngles wrote: »

To be honest I've no idea at the mo. We had it valued last time we remortgaged, probably 4 years ago, at £110000, but I imagine it wouldn't be worth that in the current market!

Not a lot of scope with the extent of your other debts.

You should tackle your debts first. Most expensive interest rate first. No easy answers other than counting every penny.