getting away from sub prime

adysiege

Hi there, I've a few issues which I hope someone out there will be able to advise me on.

I have got a sub-prime mortgage with Start Mortgages, the property was bought for 235,000, 160,000 mortgage and the rest cash. The property is rented at present but is still not covering the monthly payments. I tried selling but I probably wouldn't get 140,000 for it now. Any advice on changing to a more suitable mortgage.

I am currently employed full time in Belfast, have been this last year. How long the work will last I can't answer because its within construction.

All and any suggestions are much appreciated.

Thanking you

Adrian

beecher2

If the house is now worth less than the amount outstanding you won't be able to get a deal elsewhere. You'd have to have an LTV of 90% at the very most, so it would have to be valued at £178,000. Even then, those deals would only be available for those with perfect credit. Could you move into it yourself and rent out a room?

CloudCuckooLand

How much more cash have you got?

What doesn't quite add up is why you went sub-prime when you had £75k in cash in hand...

If it was old defaults on your credit history that are now old enough to be ignored, there may be hope - if you can reduce the LTV.

If there are still issues on your credit record, they will need detailing to understand whether they will leave you counting as sub-prime.

adysiege

I was out in Asutralia from 2004 to 2006 and hadn't enough credit built up. My parents helped me out with 70,000 of it to get me on the so called ladder. I was living in it at the beginning but had to move out because I lost my Job in Dublin. I am now in Belfast so it wouldn't suit to move back in.

adysiege

sorry 5000 was my own savings. I haven't a washer to my name now, I basically live from month to month on my salary.

CloudCuckooLand

In that case, you will be stuck with your current lender.