high interest mortgage

kolonel

Hi I'm new to the forum but I really need some advice.
I am self employed and have had debt problems over the past few years and made the sad mistake of re-mortgaging my house to my detrement. I have ended up with a mortgage that has high interest. I pay £512 pcm for a 65,000 mortgage!!!!! what can I do? The payments have increased 3-4 times over the past year or so. Is there any advice for me ? if anyone could help I will be most appreciative.I have virtually 0 credit rating so I don't think anyone will give us a reduced rate. :mad:

herbiesjp

Who is your current lender?

What were the debt problems?

Have you got penalties to pay if you leave your current lender? If so when do they expire?

kolonel

my lender is capstone debt problems included loans credit cards and getting behind in payments due to not being able to work because of weather. I don't think there is a penalty only if I changed within the first year. Thanks for your interest.

herbiesjp

What is your occupation? Just curious if the weather affects your job.

When, roughly, was the last missed payment? Is everything all up to date?

Have you got an up to date copy of your credit file?

kolonel

I'm a window cleaner.the last missed payment was last month so even playing catch-up now. No I havn't sent for an up to date copy of my credit file I just know as we have had credit cards gone to debt recovery plus when I remortgaged no banks would entertain us.

herbiesjp

Your first port of call should be to get an up to date copy of your credit file and partner if applicable.

Armed with that information you need to talk to a fee free whole of market adviser.

Without the credit file it will be impossible for anyone to give you accurate deals that you could be eligible for, and would be more a case of hit miss when applying with lenders. This would only further damage your credit file, so you would need to try as much as possible to place with a lender that was right for you at the first time of asking.

Do you know what rate you are on?

kolonel

8.25% as of the 1st december 2006 due to the libor interest rate increasing to 5.25%.

UK007BullDog

Hmmmmm.......

Can you find your documentation and look for the exact figures and dates to help us see what you got. If the rate has been climbing I think its some sort of tracker or discounted? What is the exact interest rate? Repayment or Interest only? What is the early repayment charge?

How much do you earn or did earn the last few years? Would you be able to take on a different paid employment?

Where you in the same situation last year when you remortgaged? Was the mortgage you bought an advised sale or did you answer an advert like the ones on TV, Radio and magazines, via the phone?

UK007BullDog

I am no longer dealing with adverse, so some of the other brokers on here can give some advice.

However the rate is not that bad for the type of adverse you have told us about. I think your main problem is not having a regular income to be able to pay the mortgage and bills, and the fact that your mortgage follows the libor rate.

Why did you not go fixed to help budget?

Are you on repayment or interest only?

kolonel

I would need to dig out original paperwork but I do know that it is repayment the interest rate i'm paying is the one above of 8.25%
we were referred to this company who were originally SPML. with thanks

UK007BullDog

SPML :eek:

OK, do find the original paperwork as with that the others can give better advice what your next move might/should be. You might also want to post on the debt free wannabee board.

A tip:

ALWAYS pay (in this order) your mortgage, then your utilities, then your council tax, then your food, and then if any money is left over for your unsecured debts. Unsecured debts cannot take your property away. Not paying your mortgage can lose you your home. CC's will threaten and cajole you into paying them before you pay the mortgage. Dont let them frighten or bully you into doing something you do not want.

Have you spoken to the lender to change it to an interest only payments for the time being until you find your feet? Maybe you can look for a job? Or your partner? Have you asked the council for help or the CAB?

I think you should also ask for help on the other board. A lot of good people can give you help there too.