Mortgage Help Cheshire - High Rate of Interest

jasjadjos

Hi all,

Go easy on me its my first time.

A long story short, I bought into the shared ownership fever and bought a house for £172,000 based on my earnings at the time, as my wife did not work, I bought a 40% share £68,800, this was with Cheshire Mortgage Corporation, at the time, I had committed to buy and the market collapsed, Feb 2007 so these were the only one left for me after The Leeds lowered the amountthey would offer me.

I was put on a fixed 3 year deal at 6.5% for 1 year and then to their standard rate after 1 year for a further 2 years, which was a very high 11.5%, however our broker advised we would be able to re mortgage to a better deal after 12 months.

The re mortgage never happened due to the mortgage market as it is now L.

My marriage broke down 2 years ago and I have been paying the mortgage of £672 per month, plus maintenance for 3 children of £625 per month.Plus some small debts giving £1350.

We were released from the fixed rate 18 months in and told there would be not penalties if we wanted to switch, however due to personal circumstance I can not get a new mortgage main stream due to separation and the outgoings I have from rent and mortgage etc.

The rate is killing me and they have just put it up to11.75% so now repayments are £721.00 per month.

Selling the house is not really an option due to the ex and the three children living there and how the prices have dropped.

I am just looking for some advice as to what to do ?.
Thank you

harvey115

Seems like you are on SMR (3.99%) + 7.76%, that's huge.

Can't you get a fix from the same lender? I am sure you will get something much much better then the current rate. I think you should call your lender directly if you broker is not able to help you.

jasjadjos

I asked about 6 months ago and it was aflat no that our rate.

The_J

Firstly, brace yourself for the shared ownership crowd coming and telling you you messed up. Conveniently ignoring the fact that had you bought a property fully you would be in a much worse position.

That rate does sound horrific though. I think you have to sell and pay for the family to rent somewhere.

GMS

harvey115 wrote: »

Seems like you are on SMR (3.99%) + 7.76%, that's huge.

.

Where have you got the 3.99% from?

Cheshire Mortgage Corporation are a lender of last resort with high rates of interest. The Standard Variable Rate is set by them and not linked to any other rate.

Discount rates were commonplace for Cheshire with a huge shock when discount period ended. They catered for adverse credit clients and unusual property types predominantly.

jasjadjos

We were limited to products from Leeds, Prefered and Cheshire end of 2006 when i was looking for a mortgage, both Prefered and Leeds dropped the amount they would lend to me to £54,000 at the time i wouldnt of been able to make shortfall up in a larger deposit but had to go with Leeds, i should of not bothered, but when you have been renting for ten years since you last owned a house and you see the chance of a nice shiney new 3 bed semi, common sense went out of the window, lesson learnt !.

harvey115

GMS wrote: »

Where have you got the 3.99% from?

Cheshire Mortgage Corporation are a lender of last resort with high rates of interest. The Standard Variable Rate is set by them and not linked to any other rate.

Discount rates were commonplace for Cheshire with a huge shock when discount period ended. They catered for adverse credit clients and unusual property types predominantly.

I may be wrong, I just checked this rate from their website for existing customers. I think the rates they are showing are possibly from nationwide instead. I was just guessing what addition to the SMR OP might be on since the fix has ended.

GMS

You have searched Cheshire Building Society, not Cheshire Mortgage Corporation.

Unfortunately for the OP they are poles apart in their rates.

Dave_Ham

Hi - this is a horrible situation, I feel you are at the mercy of the lender..

Do you now have adverse credit history and have you consulted a broker to see if there are other options?

jasjadjos

Have adverse now as seperated, i have always paid since i left but some bills didnt get paid etc, slowly recivering now and paying off as any arise, however it hasnt helped the situation, i am looking at brokers now to see if i can get one to help.