approaching end of fixed term for 1st time buyers

helbop77

Hi there,

I wonder if anyone can offer any advice. My partner and I have a mortgage with Northern Rock and will be coming to an end of our fixed term rate at the beginning of February.

My concern is that I've got a bad credit rating and my partner has always had a good one. However, my partner's is now bad as a result of being associated with me. We got the mortgage when I had a bad rating but I'm really concerned that when we come to the end of our fixed term we'll loose the house because of both of our now bad credit ratings.

I'm paying off my debts and hope to be debt free by February but will it be too late?

Thanks

mustang1

When your fixed term comes to an end, you should go onto Northern Rock's Standard Variable Rate. Check what your mortgage documentation said when you first got the mortgage. Your bad credit shouldn't affect that but it will affect you if you want to remortgage to another company so you are doing the right thing in paying off that debt and trying to improve your credit history.

helbop77

Hi mustang1,

yep, the mortgage agreement states we'd then go onto a 5 year Standard Variable Rate. We'd taken out an interest only mortgage thinking that we'd be able to save for the first 2 years and then go onto a repayment mortgage. But I've had a tough few years with redundancy etc getting into debt and am now realising the knock on effects it has.

I'm looking forward to clearing my debts but not the prospect of our only option being 5 year SVR, particularly as we're getting married in 3 weeks and want to start trying for a family.