Seriously worried - debt plan - mortgage

spamgarrasequin

When I lost my job in 2009 I had to take another job with a reduced salary, which has meant that I've gone onto a debt management plan. I've got a mortgage with Intelligent Finance, the interest rate is 0.5% but they are no longer offering mortgage products which means that when interest rates start rising, I will have to look elsewhere. I would like to start doing this now, but I am terrified that I will not be able to get a mortgage because of the debt plan. I've never missed a payment for anything before this but I have two loans showing as being in default on my credit rating, totalling around £25k. Any ideas or advice would be really appreciated.

Mini_Bear

if you are on a tracker, tracking at base rate i wouldnt worry too much. even if base rate goes up to 4% you would still be better off staying where you are! deals for people with bad credit are surely 7%+ now and will be more as base rate increases! could you not take on a second job to increase your income and perhaps pay off your debts quicker?

Peter_L

spamgarrasequin wrote: »

When I lost my job in 2009 I had to take another job with a reduced salary, which has meant that I've gone onto a debt management plan. I've got a mortgage with Intelligent Finance, the interest rate is 0.5% but they are no longer offering mortgage products which means that when interest rates start rising, I will have to look elsewhere. I would like to start doing this now, but I am terrified that I will not be able to get a mortgage because of the debt plan. I've never missed a payment for anything before this but I have two loans showing as being in default on my credit rating, totalling around £25k. Any ideas or advice would be really appreciated.

I think you'll find that they did a u turn about not offering mortgage products (for existing customers). If you mean that your mortgage is 0.5% above BOE then this should be a tracker - did you not get this fixed as most people with IF mortgages (myself included) got theirs locked in for the life of the mortgage. IF have recently generously allowed me to port my +0.55% mortgage with extra borrowing AND extend the terms by another 10 years to 25 years so my first port of call would be to ring them and explain the situation. The number you need to call is 0845 602 5353. Good luck !

spamgarrasequin

I know I'm okay for now, it's just that I work 12 hours a day as it is, there's no way I can work any extra at the moment, and the level of debt that I have is so much higher than I could afford to pay back for the forseeable future. I'm 43 now, if I lose this flat, I will never get back in the housing market again. There must be something I can do. Anyone?!

SouthCoast

Having problems with your mortgage payments?



http://mortgagehelp.direct.gov.uk/default.aspx

Thrugelmir

House buying is very a English trait. On the continent renting is very much the norm.

So I would base any decision on financial grounds. Clearing your other debt is the key. Inf interest rates rise then you may find that the existing equity in your property diminishes.

Remortgaging in your current position makes little sense. What you need is a plan B, to sell your flat if needs must. From their rebuild your credit rating.