Remortgage after bankruptcy

meatym

Thanks acg we will get onto the bank and see what they say, we are 43 and 34 so have a few years work left in us yet,

Simon_gloster

Who is your lender if you dont mind me asking?

Is your mortgage interest only? If so extending the term wont make any difference.

If you look to extend the term on a repayment basis until the eldest is 65, its only extending the term by a few years, lowering payments by little probably.

What was the NET profits for 2011? As thisbis what your bank will need.

Negative equity house purchases do exist, but even downsizing you have to pump money into the transaction (you said you have no savings).

Thrugelmir

Suggest you consider selling up and renting.

If interest rates rise in the future then you could have severe financial difficulties. Particularly if struggling at current levels.

Hanging on is not a way forward.

meatym

Hi again

We have had our house up for sale for probably 2 of the 6 years we have lived in this house and can't sell. To sell now in negative equity may not even be possible if our lender does not agree, and would put us in a worse financial position than we are in now as to rent a 3 bed in our area is the same or more than we pay on our mortgage.

We are currently interest only, but want to revert to repayment. However, finding an extra 450 a month is not easy - we have cut back everything we can but everything goes up constantly (our gas/elec just went up to 145pm last week!)

Our lender is BOS, we had a measly payout from them recently over a huge data protection booboo they made on our account which is why we missed out on our chance to change from our original fixed rate onto a new deal in 2008 - as they sent all our letters to the wrong address. However, they refuse to acknowledge what outfall this subsequently caused us! Now stuck on their SVR and our payments have gone up twice in the last 6 months!!!!! One due to the 'increased cost of administering your mortgage'.

I am now employed by a local authority so NET profit doesn't come into it anymore - it's NET salary and it is 908pm. (13531 salary I think?!).

We think the only way to get the mortgage paid off on a repayment basis would be to extend the term - currently it puts us up to just short of £1300 to do this, but if we could get it nearer 1000 we could do it. But then there is the risk of rates going up........

If I had my time again I'd never have bought.....

meatym

Just found this on BOS website, not much info but will give them a ring tomorrow....

With your agreement, we can change the term of your current mortgage. The amount of your monthly mortgage payment will be amended as you will be paying your mortgage off over either a longer or shorter period.
If you wish to extend the term of your loan so that it will be repaid after age 65 and retirement is more than 7 years away. We do not require details of your retirement income.
However if the mortgage loan will be repaid after age 65 and retirement is less than 7 years away, or the mortgage term extends beyond age 70, regardless of age at the time of the request we will require details of your retirement income, e.g. pension/investment statements.
For Self-Certification cases, you will be asked to provide us with details of your retirement income figure and also details of any known long-term out goings, such as secured loans where the period will extend beyond age 65.
To discuss this call 0845 850 0842. Lines are open 8am to 8pm Monday to Friday.

meatym

Well we rang the mortgage company and they will extend from 19 to 22 years over the phone, or if we want to go up to 30 years we need to write in and prove we can pay after Mr is 65, even though I will still be working as I am 8 years his junior. Still debating whether to extend by 3 or 11 years at present...........

Hanky_Panky

Personally I would be banking on interest rates going up over the next couple of years and looking at how you could afford it if rates moved to a more realistic 10% - how would you cope in any of your scenarios ?

I think your best option would be to look at increasing your income - might sound obvious but people often overlook some solutions.

Change job - option or not ? if not why not, what's to stop you looking. Both mr and mrs.
Part time jobs to supplement income, again both mr and mrs - no job too small ! I've even delivered pizza's to get some extra money to pay my mortgage. mcDonalds are a good place to go for odd hours that can fit in with your normal job.
What skills do you have ? Can you advertise locally to sell yourself !! I'm not suggesting anything lewd here but gardening, mr fix it, putting together prepacked furniture - anything !
Who do you know that may be able to point you in the right direction for something - could be someone who owns their own company that has always wanted somebody to do x but too small to really go looking for that person - you could be an answer to their problems.

I'm not suggesting for one minute it's easy and I'm sure you can find lots of reasons not to do any of the above but it can make such a difference and putting up with it for a couple of years might just get you over this problem until you can then sell and look for somewhere more affordable.