mortgage interest rate misery

jenz

As I had a bad credit history I took out an interest only mortgage a few years ago with one of these TV companies you see advertised. Worst thing I ever did.

Everything was OK for the first couple of years as I had a fixed interest rate, and I was managing to pay mortgage but then I lost my job and got into trouble again. Am now back working and managed to pay all arrears off, but the fixed interest period has ended and the interest and mortgage payments have shot up and am now paying just over a grand a month for £110,000 mortgage (interest only).

Allthough I am making sure that I still pay my mortgage before anything else it is becoming a very difficult situation for me, and unless I do something about reducing my mortage payments I'm going to soon be heading for trouble again. Have even been thinking of going back to renting but the rents round here are not far off what I am paying, so I seem to be in a no win situation

Can anyone give me some advice on where I should go for remortaging, or do you reckon a remortgage at a reasonable rate will be possible for someone with a bad credit history.

Cannon_Fodder

"whole of market" mortgage broker is the usual advice for finding good rates.

depends how bad the arrears were, whether you will be considered to have ongoing credit issues that prevent an improved rate being offered. Can't hurt to ask, can it?

has the price of the property increased enough to put some cash in the bank that you can earn interest on, to help pay the rent, if you were to sell?

herbiesjp

Paying just over a grand a month interest only means that you are on very high rates.

Speak to a fee free whole of market adviser and they should be able to find you a better deal than what you are currently paying.

Have yuo got an up to date copy of your credit file? Have you missed any payments on your mortgage lately or any other debts you have?

What is your income? What is the property value?

Rick62

You must be paying over 11% interest. There are a number of specialist lenders that take people with arrears, particularly as you have now paid the arrears off and are making monthly payments, at rates of about 6 to 7%, which could reduce your payments to about £600.

Make sure you keep paying your mortgage on time every month without fail (lenders are particularly keen on the last 12 months payment history) and speak to a fees free whole of market broker.