Remortgage Advice

newleafer

Hi I dont know if anyone can help but I'm trying to establish what the best thing to do is.....

Our fixed rate deal runs out on the 31/3/07. We have been on a fixed rate deal for 2yrs(5.29%) Our mortgage is with GMAC, who have been great the whole time, but as you are probably aware they are for higher risk clients.

The reason we were with them is because we both have a small glitch in the past(joint acct) and OH had a default (this is now gone from credit record).

We want to remortgage for the end of the fixed rate period, we are still unsure if we will get a high street deal as we still have a large amount of debt, (we have 3 loans but we no longer have any balances on our CC's as we consolodated our CC debt). We dont know if we can deal with GMAC directly as we did it through a advisor when we bought our house.

Our Mortgage is equal to about £13900/140000 at the the end of the fixed rate, the value of the house is roughly £153000. Like I said we do have debt equaling to £52000. Our Salaries cover all our outgoings, inc Life insurance and Critical illness.

What I'm trying to find out is A) Will GMAC be willing to offer us a new fixed rate deal?? Can we talk to them directly?

Are we likely to get a decent deal in the High Street?

When we bought the house it was so much easier as the house builder provided the advisor, we are trying not to use them unless we have to.

We dont really know where to start, but we are aware we must start soon.

Thanks NW (sorry for the waffling)

MortgageMamma

newleafer wrote:

Hi I dont know if anyone can help but I'm trying to establish what the best thing to do is.....

Our fixed rate deal runs out on the 31/3/07. We have been on a fixed rate deal for 2yrs(5.29%) Our mortgage is with GMAC, who have been great the whole time, but as you are probably aware they are for higher risk clients.

The reason we were with them is because we both have a small glitch in the past(joint acct) and OH had a default (this is now gone from credit record).

We want to remortgage for the end of the fixed rate period, we are still unsure if we will get a high street deal as we still have a large amount of debt, (we have 3 loans but we no longer have any balances on our CC's as we consolodated our CC debt). We dont know if we can deal with GMAC directly as we did it through a advisor when we bought our house.

Our Mortgage is equal to about £13900/140000 at the the end of the fixed rate, the value of the house is roughly £153000. Like I said we do have debt equaling to £52000. Our Salaries cover all our outgoings, inc Life insurance and Critical illness.

What I'm trying to find out is A) Will GMAC be willing to offer us a new fixed rate deal?? Can we talk to them directly?

Are we likely to get a decent deal in the High Street?

When we bought the house it was so much easier as the house builder provided the advisor, we are trying not to use them unless we have to.

We dont really know where to start, but we are aware we must start soon.

Thanks NW (sorry for the waffling)

Hi,

First question - you say you do not want to use the same adviser again - why is this? did the adviser charge you a fee or were you not happy with his.her service? Its not very often someone who has used an adviser to get a mortgage does not want to go back for more, advisers usually add real value in mortgage terms

Secondly, you say you have over 50k in debts, is this higher or lower than your level of debt that you had when you bought the property originally? Is any of this debt secured on your property? how much do you pay for the debt and how long will you be paying it? Do you intend to consolidate this debt onto the mortgage or just continue paying it as it is?

herbiesjp

Gmac normally only deal via brokers, however they very often sell their mortgage books to other providers so you may actually be with a different lender - who does the direct debit get paid to?

Secondly, your credit history sounds like it is all cleared up.

Thirdly, you may well be able to find a better high street rate, however you do not say what your incomes are, and what you pay each month to the loans. This is importnat as the lender will need to make deductions from your incomes to make sure the loans are not affected i.e if you pay £100 pm on a loan they will need to annualise this figure 12*100 = £1200. They will then deduct this figure from your incomes before applying any income multiples or affordability calculator

HTH

newleafer

Thanks for your replies

Firstly Mortgagemamma: We did like our advisor, but he was a little condesending about our situation, as you can imagine we are well aware of our debt and found this a bit frustrating, we have added to it a bit from when we got mortgage, this is due to a few hiccups (car died etc) but we had alot of the debt on 6 CC's now we have consoladated it into one loan.

So the debt is a little higher, but now in 3 loans (they are all unsecured) which equals to £1055 a month, one loan finishes in 5yrs(£396 am onth) and the other two finish in 6yrs(£275 a month) and 7yrs(£384).
Ideally we would like to have one payment a month but this isn't realistic as there isn't the equity in the house to do that. I suppose we could consider adding the smallest of the loans to the morgage, but that would put us above 95% LTV and it took the first years mortgage payments to pay the fee, this time. Would that be better from a lenders view point?

Secondly Herbiesjp

Direct debit is paid to GMAC

Our incomes are ME:£18309 OH:£35000

We pay Egg £275 a month 55months left

Natwest £396 a month 58 months left

Virgin £384 Month 72months left from feb 07

So based on your calculation they would 1055*12=12660 they would minus this from our total income = £40379
Will that be enough to cover our current mortgage £140000?

Thanks for your help, I hope this info can help me more.

NW