Can I get my mortgage company to lower my interest rate?

morgan1967

We are in a shared ownership property.. our mortgage is for 90.000 ( 35%) and our monthly repayments are £823.46 a month, plus £350 a month rent.
We are supposed to be in affordable housing! We agreed to a high interest rate with our mortgage company for a 3 year period to get ourselves out of rented accommodation and onto the property ladder. But as the recession hit and being self employed the repayments became erratic, so even after the three year agreement the mortgage company would not let us have a reduced rate.

We have fallen behind in repayments with literally everything now and cannot even afford to buy food.....we have a repossession order over us and MUST make the repayments ( inc arrears) each month on the dot or we will be evicted.
We desperately need a lower rate as its now at 10% and we just cant afford it.... we have considered selling and privately renting although the rent will not be that much less than what we are currently paying as we live in an expensive area. we are also worried we wont be accepted as we now have bad credit rating.
Can any one please tell me if they know of any way of getting our mortgage company to reduce the interest rate?

DannyboyMidlands

So your mortgage is £90k and that is 35% of the value? A property of £250k doesn't sound particularly affordable to me.

You clearly can't afford such an expensive house. Sell it before you get repossessed. If rental prices are high then move somewhere cheaper.

morgan1967

Thanks for your reply although moving to cheaper area is not as easy as it sounds as we have work commitments in this town.
We desperately want to keep our home, but feel the interest rate of 10% is unfair. I wondered if anyone knew how we can get it reduced?

Thrugelmir

Who is your lender?

brit1234

Sell now!

good luck

opinions4u

Unfortunately the interest rate charged reflected the risk of lending to you.

This is now being borne out in your current situation.

I'd suggest you get over to the Debt-free Wannabe part of the forum now and ask for help there. While you may be desperate to keep your home, don't be afraid to look in to the benefits of not being a homeowner and also consider the possibility of bankruptcy.

Good luck. Well done for posting.

Can any one please tell me if they know of any way of getting our mortgage company to reduce the interest rate?

Ask them?

But if they are charging what the contract says they can charge, don't expect them to move.

DannyboyMidlands

I don't really see the attachment to it. It's only bricks and mortar and sounds like a bit of a nightmare. Sell up, live cheaply, get your finances straightened out and buy something else in the future.

morgan1967

Thanks guys..it does seem to be the general advice is to sell. We are trying so hard to keep afloat and pay everyone something.... but just not having a life...
Our lender is Cheshire Mortgage.. otherwise known as Blemain Finance I think... I have spoken to a financial advisor, who swore as soon as I mentioned the company name ... guess that says it all!

Senior_Paper_Monitor

I see no chance of Cheshire/Blemain lowering what is their standard rate - these guys are serious (in today's market) adverse lenders and are certainly not a charitable organisation.

silvercar

What is the property worth?

How easy is it to sell? In some areas the conditions attached to affordable housing mean you have to sell at a set price or offer it to certain groups before you can sell on the open market.

If your 35% of the selling price is not enough to clear the mortgage+arrears, selling may not be an option.

morgan1967

We do have some equity.. next door have just sold and made £28,000 profit they have an identical house and same 90,000 mortgage, although a much lower interest rate. Their house also sold within 2 days of going on the market.

I dont think we will have a problem selling... its just we dont really want to... what we want is a reasonable interest rate.... but I really dont think thats gonna happen.

The only option is to tough it out and try to remortgage once we have cleared the arrears?

Many thanks to all that have replied xxx