Re-mortgage possibilities when considered 'sub-prime'

chiefsfanuk

My husband and I are in the best financial position we've been in for a little while and I think it is about time I try to sort out the mortgage situation, I am hoping I can get some advice here before showing my naivety to a broker or banker in person lol

My situation in brief, we own our house bought for cash outright for £212,500 in 2008 (no mortgage).
Then got a small mortgage and secured loan totaling roughly £35,000 with terrible rates (would have to check exact figure but know it is over 10%!!!). No missed payments on these. Had several defaults and a CCJ which we cleared with the mortgage in May 2009.
Unfortunately got landed with another CCJ end of 2010/beginning of 2011 (long story and one that angers me greatly!!) Still paying this one off I think, but should soon be paid off, I need to check that.
Have one current account with an overdraft, and one credit card which I do use but don't pay off in full every month ( I know sorry, I only used it for emergencies up until Christmas!) I have managed that credit card well enough for them to up my limit in November.
Both Husband and I have been fortunate enough to land new full time jobs, giving us a total income of over £31,000.

I guess what I am asking is, am I way off being able to get a mortgage that will be a better rate than my current 10-12%?

Am I likely to find anyone to offer somebody like me with my poor history anything better or am I too 'sub-prime'

Is there anyone here who has been successful in obtaining a fair rate even with a poor history?

On the upside I do have a large amount of equity and I'd be happy with a 15 year term.

Any advice is welcome and appreciated

GMS

How much was the CCJ in 2011 for?

chiefsfanuk

I think it was just over £800

GMS

Should be options for you at much better rates than you are paying now.

Speak to a broker asap. Dont worry about being seen as naive. We have seen it all before!

chiefsfanuk

Thank you very much it's nice to be reassured that I won't be shown the door as soon as I admit my financial sins:rotfl:

GMS

We all make mistakes. Taking control is the important part.

Get copies of credit searches from Experian, Equifax and Call Credit. Go for the £2 statutory reports rather than the free trial. Pass to a broker and be 100% honest with what has happened.

No broker will judge you so dont worry.

chiefsfanuk

Thanks GMS, I will get onto that this weekend as my first step in sorting this all out :-)

Conrad

2011 is too recent for any competitive lender, you might get a slightly lower rate than 10% but on that size of mortgage the difference in payments will be minimal and don;t forget to factor in all the fees including broker fees and any early settlement fees on the existing debt. Also note some brokers will aim to sell you lots of insurance so they earn commision, make sure this extra cost does not offsett the possible reduced mortgage payments, as in the end you would be no better off.