Mortgage Term Coming To An End - Possible Issue With Bad Credit Score - Help Please!

Samuelle_2

Hi

We currently have a fixed rate repayment mortgage at 6.25% interest, we took it out over 30 years so have 27 to go and it is due to come to the end of it's fixed term in approx 5 months' time so we are starting to look at remortgaging.

My husband had some issues paying off debts back in Oct 2006 and we have worked hard to settle all of the debts, with the exception of one that is still being paid off monthly.

We recently checked our credit ratings and while mine is showing as fair and is average, my husband's is showing as red regarding the debt that we are still paying off. (everything else is green)

We have been in contact with our financial advisor who has told us that there is only one company that would be willing to lend to us at a rate of 5.8% interest.

I'm quite disappointed with this as I was hoping that we might be able to enjoy some of the reductions in interest rates that have happened whilst we've been fixed in.

Does this sound right that only one lender would be willing to take us on? Are we best to fix again at 5.8% or would we be better to take a variable rate? It has to be a repayment mortgage as we are not disciplined enough to put money into a savings account each month if we were to go interest only!

Any advice gladly received.

Thanks

GMS

What rate will you revert to, and what would your current lender offer you in terms of a fixed rate?

Samuelle_2

Hi

It would revert to 7% (slightly higher than that but I can't remember exactly)

My Financial Advisor spoke to the mortgage co and they said that they didn't currently have any promotional rates on offer that they would pass on to us....

Thanks

GMS

Which lender are you with?

Samuelle_2

It's a co called Platform

Burridge60

Really not enough information to help you with.

Looks like you either have a high loan to value and Platform don't lend above a certain level or you went to them on an adverse mortgage and they don't have terms for that type of loan any longer.

over 7% revert rate is high and might be linked to LIBOR ? does this ring bells?

If the new rate you go for is 5.8% it might be worth making sure this is another long term fixed rate especially if it has a huge fee.

herbiesjp

Do you have an up to date copy of your credit file?

DO you have defaults etc registered? If so when were they first registered?

What figures are you looking at i.e. property value and mortgage amounts?

What are your incomes?

As you can see these are just a few of the questions that need answering, and a lot more would be needed to check on your eligibility for any mortgage.