Time to change mortgage - if possible?

oakdale_minx

My situation is a bit rubbish mortgage wise and I am now able to look at changing as fromnext month I won't incur any early redemption fees.

However, I think I'll have a few hurdles to jump to change and really need some advice.

I got my current mortgage when I moved nearly 3 years ago. I went through the estate agent broker and was told the only offer I could get was a self-cert mortgage from GMAC-RFC. I put down a £55,000 deposit and took on a £105,000 mortgage. I took on a 30 year mortgage and so have 27years left.

I thought it was a fixed rate for 3 years . It wasn't. It was a reduced rate for 1 year and then LIBOR rate + 2.5% for the rest of the term. If I moved within 3 years there were hefty redemption fees.

For the first year, I was on repayment, but after the offer finished I had to change to interest only to afford it - I mis-understood the offer and now kick myself.

Anyway, at the time, my credit record wasn't good. I had a CCJ for £492 and a couple of defaults.

Three years on. The CCJ is paid off (although still not marked as satisfied) and will drop off my record in 1 year. Only 1 default remains and is only showing on equifax. Other than this, my credit report is good.

I have no unsecured debt.

I do however, have a secured loan with about 18,500 left to pay which I am wanting to clear by late 2010/early 2011 and am currently on track to do this.

My current salary is £28,500 plus self employed (variable) earnings of £500 pre-tax a month. I can increase the self employed earning if need be.

However, on Monday, I am at risk of redundancy and a 7 week notice period starts. the chances are, I will be found something else in the organisation, but if not, I will be made redundant.

If that happens, I will be able to up the self employed earnings.

Is there any hope/choices/advice for me as my mortgage has gone up to 8.03% today with payments of £699. I can afford £699 but I just want out of the deal I'm currently on and I really really want to get back on to repayment.

JoeK_3

oakdale_minx wrote: »

My situation is a bit rubbish mortgage wise and I am now able to look at changing as fromnext month I won't incur any early redemption fees.

However, I think I'll have a few hurdles to jump to change and really need some advice.

I got my current mortgage when I moved nearly 3 years ago. I went through the estate agent broker and was told the only offer I could get was a self-cert mortgage from GMAC-RFC. I put down a £55,000 deposit and took on a £105,000 mortgage. I took on a 30 year mortgage and so have 27years left.

I thought it was a fixed rate for 3 years . It wasn't. It was a reduced rate for 1 year and then LIBOR rate + 2.5% for the rest of the term. If I moved within 3 years there were hefty redemption fees.

For the first year, I was on repayment, but after the offer finished I had to change to interest only to afford it - I mis-understood the offer and now kick myself....

Do you have a copy of the mortgage Keyfacts document from when you remortgage with the broker?

Have you got a copy of the mortgage offer?

Mistakes can be made.

oakdale_minx wrote: »

Anyway, at the time, my credit record wasn't good. I had a CCJ for £492 and a couple of defaults.

Three years on. The CCJ is paid off (although still not marked as satisfied) and will drop off my record in 1 year. Only 1 default remains and is only showing on equifax. Other than this, my credit report is good.

I have no unsecured debt.

I do however, have a secured loan with about 18,500 left to pay which I am wanting to clear by late 2010/early 2011 and am currently on track to do this.

My current salary is £28,500 plus self employed (variable) earnings of £500 pre-tax a month. I can increase the self employed earning if need be.

However, on Monday, I am at risk of redundancy and a 7 week notice period starts. the chances are, I will be found something else in the organisation, but if not, I will be made redundant. ... .

Did you take out any Accident, sickness and Unemployment insurance out with the broker?

oakdale_minx wrote: »

Is there any hope/choices/advice for me as my mortgage has gone up to 8.03% today with payments of £699. I can afford £699 but I just want out of the deal I'm currently on and I really really want to get back on to repayment.

See a good whole of market adviser who should be able to help.

JoeK