Poor Credit Rating

Julkster

Hello

My 3 year tracker is about to come to an end, however Santander have told me that due to my poor credit rating they only have one option for me and that's double my current rate i.e I will be paying twice as much.

I know I had a black mark against my credit rating for missing 1 payment a while ago, but I soon caught up and have not defaulted on any other payments since.

HELP! I really can't afford to pay double and I must confess I know very little about mortgages.....

PLEASE? ANYONE?

Any assistance much appreciated!

Julki

x

Dave_Ham

I cannot believe that even Santander would say you have a poor record on the back of one missed payment.

You need to obtain your Experian, Equifax and Call Credit reports and see exactly what is on there.

Additionally what is your mortgage value and approximate value of property and are you currently on an interest only mortgage?

Julkster

Hi Dave

Thanks for responding!

I forgot to add that I'm on a debt management scheme, but I am paying off all (2) of my debts, just a bit slower than originally anticipated. That's all - I promise!

I haven't missed a single payment in the last 3 years on anything.

My mortgage value is £147,000 & my property is worth £250,000 and it is Interest Only. If there's anything else you need to know am only too willing!

Will I be able to get any cheap deals in my current position?

Probably not....but thanks for your help!!

xxxx

Dave_Ham

It is unlikely you will get any deals I am afraid and that is why Santander have not offered you the stand out products.

Unfortunately being on a DMP is a no go for most lenders and the ones who may let you off are unlikely to do interest only and the rate is likely to be double what Santander are offering you.

Is it a joint mortgage and is a joint DMP?

kingstreet

What is the follow-on rate for your mortgage?

How does that compare to your current tracker and to Santander's customer retention product offered to you?

Conrad

MBS Lending can consider DMP's and Interest only. I'm not recommending anthing here other than you might want to take a look at them (in the same way people mention models of car as avenues possibly worth checking out). They are cautious and won't be lending unless things are very affordable and they will want 3 months Bank stats.

Dave_Ham

And they will want to charge you a fair bit more in arrangement fees and rates than the Santander variable of 4.74%

helpmeee

Try get a 123 account then try again to get rates.. they seem to be a lot more keen if you have a 123 account.

Im suprised that abbey re credit checked you.

I have over 60k worth of credit card debt and my new mortgage was no issues.

Dave_Ham

I assume one of the DMP issues were with Abbey/Santander and therefore it will be marked on file, or additional funds were requested...

Not sure the 123 account will mitigate being on a DMP

Julkster

The DMP was NOT with Abbey/Santander & additional funds were not requested.

Also it's NOT a joint DMP/Mortgage - both are solely in my name.

Will try MBS.

kingstreet

Any chance of an answer to post #5 please?