Remortgage please!

trapped_in_high_interest

Hi,

Thanks for advice, I have spoken to Kensington and they will not change the credit report at all as they say it is a legal document. On the plus side I have got documentation from Kensington that we have paid the mortgage since september 2005.....would this help if I showed it to a broker?

Next question who is a good broker who could help?

Any replies please desparate to get away from Kensington and reduce the monthly interest we are currently on.

jamesd

OK, Kensington brushed you off with a bogus excuse about it being a legal document. Fair enough, but it's really up to THEM to decide whether they think you have been complying with the terms of your agreements with them and they can report this as satisfied or defaulting as they choose. But since they don't want to, you get to live with that. Such is life. It's clearly better for them not to change it, so no big surprise here.

September 2005 and you're probably locked in for at least two years, posibly three, without paying the early repayment charge. Do you have a Key Facts Illustration? You should have been supplied with one and it will show you the amount borrowed, the mortgage product name, the monthly payments, the interest rates and when they change and any early repayment terms. Knowing all the numbers on that will be helpful to a broker - seeing the numbers is necessary to find out when the tie-in period ends and that's needed to work out whether staying or switching is cheaper. The early repayment fees are probably 5-6% and if they are that high it's going to be tough today to get a good enough deal for it to save you money by switching.

Key things a broker has to have to advise you:

1. Knowing the dates when early repayment penalties end for each of the two mortgages.
2. Knowing the amount of the penalties - a percentage probably 5-6%.
3. The value of the house and the amount borrowed, to see what the loan to value of the new mortgage would be.
4. For a real broker, not just discussion here, more details of your credit history. Not really needed here - the late payment record is sufficient for this.

Time to dig up the key facts illustrations for both mortgages and the required dates and amounts.

trapped_in_high_interest

Hi,

Thanks again for your help. We do not have an early repayment penalty on Kensington any more. It used to be £6,000 but we have had the mortgage for three years now and I have checked with them that there is no penalty.

The secured loan with Capstone has a early repayment penalty of around £1,000. The outstanding mortgage is £110,000 and the Capstone is £23,000 and our house is valued at £170,000.

Do we need to clear both Kensington and the secured loan with a remortgage? I.e loan at least £133,000.

Could we get a remortgage with a "proper" lending yet? I.e a leading building society? Or is it better to get a broker in to have a look at it all?

Can we get a broker to have a look without damaging the credit report further and then decide not to proceed without costing us money?

Any thoughts please?

herbiesjp

trapped_in_high_interest wrote:

Hi,

Thanks again for your help. We do not have an early repayment penalty on Kensington any more. It used to be £6,000 but we have had the mortgage for three years now and I have checked with them that there is no penalty.

The secured loan with Capstone has a early repayment penalty of around £1,000. The outstanding mortgage is £110,000 and the Capstone is £23,000 and our house is valued at £170,000.

Do we need to clear both Kensington and the secured loan with a remortgage? I.e loan at least £133,000.

Could we get a remortgage with a "proper" lending yet? I.e a leading building society? Or is it better to get a broker in to have a look at it all?

Can we get a broker to have a look without damaging the credit report further and then decide not to proceed without costing us money?

Any thoughts please?

I think having a word with a fee free whole of market adviser would be the best course of action for you.

That way they could look into your scenario and see what kind of deals may be available to you. It will not affect you your credit file just looking at deals - if you start carrying out credit checks you would need to know. or be pretty confident that the deal you are applying for will be accpted by the lender

trapped_in_high_interest

Thanks,

But how do I find a fee free whole of market broker?

Where are they?

Who can I contact? Any ideas??

herbiesjp

trapped_in_high_interest wrote:

Thanks,

But how do I find a fee free whole of market broker?

Where are they?

Who can I contact? Any ideas??

Have friends or family used anyone before?

Do you need to see someone face to face or is over the phone/internet advice ok for you?

Whereabouts are you in the UK?Essex?

trapped_in_high_interest

Hello,

No family and friends all renting.

I think face to face would be better as circumstances are difficult to explain although I could do this over the phone.

Yes in Essex

jamesd

trapped in high interest, it looks as though in two months you'd qualify for the 6.15% (BoE+1.40%) two year tracker then BoE+2.49% from BM Solutions, since you would need 78-79% LTV to combine the two loans (which you should do). At more than 75% LTV you wouldn't meet the maximum LTV for their unlimited mortgage that accepts more than 6 months of arrears in the last 12 months. Their guideline of 3.5 x primary income + 1 x secondary income or 3 x joint income might be an issue but they really use an affordability model and you may pass anyway after the time you've been both paying the higher current payments and repaying arrears.

There are other lenders and a broker must also consider the amounts of the CCJs and when they will leave your credit reports to help you to decide whether to go for a two or three year deal or to wait a few months (perhaps 5 instead of 2) longer to qualify for a better mortgage deal.

What you might consider is BOTH asking one of the brokers who posts here and asking a local broker. Three have offered you assistance here already and perhaps you might like the look of one of those. Do tell them both that you're asking two brokers, so they freely accept the situation and know they have competition in finding you the best deal. Make certain that they will use your own copies of your credit reports to seek out suitable products and tell them not to apply for anything, not even an agreement in principle, until you have selected which product seems best to you.

A key piece is likely to be calculating how long you should wait for the deals you qualify for to improve as the number of arrears in the last year decreases and working out the break-even point.

Don't accept anything worse than that heavy adverse BM Solutions deal without the broker(s) clearly explaining why you do not qualify for it or why it is not worth waiting two months for it. Also watch out for higher up-front fees and lower interest rate - trading off higher fees for lower interest rate is a common approach.

trapped_in_high_interest

Hi Its me again now January 2007 and been paying this mortgage for well over a year now.Currently in discussion with Nick Bye from L&C for remortgage but he says it doesn't seem likely!!!

Why oh why can no one see that if we could get these payments linked together and remortgaged this will allow us to free up money to pay other debts off? We now pay £816.05 to Kensington and £244.25 to Capstone as they keep saying the LIBOR rate has increased and increasing it by £30 almost every time.

Sometimes I feel like we are drowning in debt and cannot see a way out? Any advice going??

herbiesjp

Why has L&C said it does not seem likely that you can re-mortgage?