Mortgage co will not give me a deal

chrisnickitom

Hi all, I am new to this so please bear with me.......

Right, I have had a Mortgage with Abbey (Santander) for over 9 years now and have always got a new deal when my current has expired. We always get 3 years fixed at lower rates then the market and are happy to do this.
We have now finished our current deal but the Abbey will not give us a deal but instead say that all we can have is capital repayment at there base rate not the 1/2% bank of England rate. We are paying 1400.00 per month on a 180,000.00 mortgage which we feel is a bit steep.
I think this is happening because I was made bankrupt in 2008 which I have since been released from but can not be sure. We have never missed a payment on our mortgage.
Can someone please advice on how to lower our mortgage repayments with Abbey or are there any other options open to us.
BR
Chris and Nicki

ILW

chrisnickitom wrote: »

Hi all, I am new to this so please bear with me.......

Right, I have had a Mortgage with Abbey (Santander) for over 9 years now and have always got a new deal when my current has expired. We always get 3 years fixed at lower rates then the market and are happy to do this.
We have now finished our current deal but the Abbey will not give us a deal but instead say that all we can have is capital repayment at there base rate not the 1/2% bank of England rate. We are paying 1400.00 per month on a 180,000.00 mortgage which we feel is a bit steep.
I think this is happening because I was made bankrupt in 2008 which I have since been released from but can not be sure. We have never missed a payment on our mortgage.
Can someone please advice on how to lower our mortgage repayments with Abbey or are there any other options open to us.
BR
Chris and Nicki

Are you expecting to borrow at 1/2%?

The_J

You are paying 4.24% it would appear which is not too bad. Obviously you can't just pay 0.5%.

You might be able to take your mortgage elsewhere with someone who is OK with ex-bankrupts. Speak to a broker.

GMS

Nobody borrows at 0.5%.

If you were to apply to Santander as a new customer you would be declined due to the bankruptcy.

Stick with the SVR you are on as you are unlkely to better it elsewhere

ACG

Are you on interest only? If you are, lenders are cutting back on this and trying to get people on repayment where possible.

As has been said, you cant borrow at 0.5%. Thats the bank of england base rate, so in theory thats what the banks borrow at, they then have to put their bit on top to cover the costs associated with lending money (ie people going bankrupt and not paying outstanding debts etc - thats not a dig as such but you should realise more than anyone why banks have to lend above the base rate).

To be honest you are going to struggle with bankruptcy in your past until its been 5-6 years. Im not recommending you do - but i would be inclined to go with what they are offering or stay on their base rate because trying to find a new lender would be a right pain.

dimbo61

Using "whathecost" I work out you have about 15 years left if you are paying £1400 a month at 4.24%.
Now the good news is that each month you are clearing over £720 off your mortgage debt so keep up the good work for the next 2 years

Thrugelmir

chrisnickitom wrote: »

We are paying 1400.00 per month on a 180,000.00 mortgage which we feel is a bit steep.

Large mortgage. Suggest you consider downsizing if money is an issue.

chrisnickitom

All, thank you very much....some great advice. I will stick with it and feel a bit better about the situation.
Chris and Nicki

Leew1231

Good rate compared to what I have! I am paying 1440 a month on a 188000 mortgage.

Brock_and_Roll

I would go further that previous posters - a mortgage rate of circa 4% for an ex-bankrupt is something that will probably not be repeated in our lifetimes!

Hopefully by the time mortgage rates start to revert back to or even abouve their long term average (and I cant see this happneing for several years at least), you will be in a better position to get the best deals.

Brock_and_Roll

ps given the rates that Santander are having to pay other banks to borrow money at the moment, they are probably makng a loss on your mortgage if that makes you feel better!