Remortgaging with Charging Order...Help!

GasHead

Hi,
As I'm confused on this issue, any advice on remortgaging with a Charging Order would be greatly appreciated.

As interest rates look likely to rise within the next 12 months, the consensus at the moment is to get a new fixed rate deal on your mortgage a.s.a.p. I'm looking to follow this advice, but unfortunately, I have a CCJ (3 years old) and a Charging Order (2.5 years old) on my property. I'm currently on a Payplan DMP with approx. 12 months remaining.

Due to my credit history, my understanding is that the only realistic option is to try remortgaging with my existing lender, Cheltenham & Gloucester (currently on 2.5% Standard Variable). I've read that the existing lender is less likely to do a credit check and the creditor won't insist on repayment (as long as there is no equity release). I have never missed any payments on the mortgage.

Should I bite the bullet and try and get a new deal now or should I stay on the existing rate and wait until the Charging Order debt is cleared in 12 months time (risking a large rate rise in the meantime)?

If I do try to get a new deal with my existing lender, should I be honest about my CCJ/Charging Order or would I be shooting myself in the foot? Would the creditor be informed of any new rate deal?

Apologies if the subject has covered in previous threads.

katsu

Try posting this on the mortgages and endowments board as there are some mortgage advisors that post there.

Also - I would not advise lying/not disclosing the CCJ etc as it is a matter of public record so they could find out anyway.

On data protection grounds I can't see how or why your mortgage company would tell your creditors about your mortgage rate etc.

Sparklyfairy

I, personally, wouldn't tell them (unless they asked outright). They have the means to check if they like. I agree that your best bet is to stay with Ch & Gl. Also, if you stayed with Ch & Gl you wouldn't be remortgaging so your charging order would remain until you moved. Hth, SF