Help damsal in distress

garland

Hi

Some sound advice please guy's.

I have a sml mortgage at mo around 19k and need to buy out my ex ( still living together but getting uncomfotable now) i do not a very good credit history and have been to a broker that has got me a mortgage for 99k, but it is with G E Money, now my question is this :

Has any body had any dealings with them ? ? it says in my mort offer that i cannot overpay anything something i was doing with Abbey (they would only offer me 27k not something my ex was happy bout). Also are they a good company ???? i have never had problems paying my mort and have never been late or missed payments, so was wondering if they are a company that leaves you alone or hounds you..

I have never remortgaged before so do not have any experience on what happens. I have til the end of june to make my decision, but want to know if im doing the correct thing.

Also when i finish the mortgage how much do i pay back to them, they are offering 99k and my property is worth 200k although not sure what it would actually sell for ??? so will i end up owing them the 200k ????? as i need to start putting in place more savings each month to pay it off.

Also what happens in 2 years time, it is fixed for now but interest rate high, if i want to say build up my credit history and then in 2yrs time change to a high street lender again, is this something that can be done with this kind of lender ????? or are they hard to move away from once you have a mortgage with them, my lender says i can but how do i know he is telling the truth ????

Sorry if it sounds a bit stupid but not sure who to ask as i know my broker at the end of the day yes, is helping me but also helping himself.

Thanks

Gorgeous_George

It's time to learn a few basics garland - otherwise the sharks in the mortgage industry will rob you blind.

Providing you pay at least the interest element of the mortgage you will not owe more than you borrowed. Borrowing £99K on a £200K property is a great position to be in (depending to salary and age of course). You are around the 50% LTV area which should make more lenders available.

What rate have you been offered? Over how many years? Are there any additional fees? Post this information and I can tell you how much you should be paying and how much you will owe at the end of the fxed rate term.

For example, borrow £99K over 25 years at 5% and you will pay £578.74. After two years you will owe £94,813. As the years pass, the amount owed falls more quickly because you are paying interest on less and less capital.

GG

hcb42

can't you ask for a repayment mortgage quote, to make sure it does get paid off - going from £19K to £99K is quite a leap.

Also make sure that whatever you agree to give the OH is representative of its current value - not what he thinks he would like to get for it - check out this £200K carefully - as if it is actually only £170 or so then it will help you if you can get a smaller mortgage.

holly_hobby

You have been placed with GE Money as oppossed to a high street lender due to your credit history.

If you want to change your lender at the end of the 2 yr fixed rate - check whether there is an extended tie in period (i.e a fixed time after your fixed rate ends) within which shoud you wish to redeem the mge you will have a penalty charge to pay. This should be clearly detailed on the illustration and offer provided to you & also explained to you by your mge broker.

You should also be aware that you may still have problems in going to the high street even after the 2 yr period, depending on the type & amount of adverse credit you have. (if you have defaults they will fall off your credit record after they are 6 yrs old, CCJs should also fall off after the same period - but can be re-registered by the creditor if the Judgement hasn't been satisfied)

Unfortunately, adverse credit lenders usually have a standard variable rate, higher than that available on the high street - nature of the beast I'm afraid.

Speak to your broker - discuss with them your concerns and worries you have raised here.

Holly

kingstreet

How bad's your credit history?

It would have to be pretty awful for me to consider placing someone with GE Money. Is the broker independent, whole market or working to a small panel of lenders?

You may be able to get a close to high-street offer if the adverse credit is below certain levels and is getting older - two years plus.