Need fixed rate but bad credit

nealnomoney

Hi could someone please help, currently with B Midshires on a tracker mortgage, payments nearly 700 pm on a 123000 mortgage. I have bad credit history, havent missed any mortgage payments though, my partner has a perfect credit history, calling all you mortgage advisers out there, is there anywhere where i can get a good fixed rate as i am scared of the interest rates rising and rising?

Thanks for your help in advance

herbiesjp

Do you have any penalties if you leave BM?

nealnomoney

yes it would be 5% of capital amount repaid in first year, is that a lot?

herbiesjp

That would be £6150 on a £123k mortgage

So you would either have to py that up front or add it on to your mortgage.

You would have to work out if you think it is worthwhile paying that kind of fee

nealnomoney

5% of capital amount repaid in first year, does that not mean a percentage of the payments that i have made? your the expert though.....

herbiesjp

If you are moving away from BM, you will have to repay BM the full £123k - so the 5% is on that figure

You may want to call BM to see if they can put you on to a fixed rate without incurring the fee but I doubt that will happen.

nealnomoney

Yes but its 5% on the capital amount repaid in the first year of the mortgage, not for the full term, am i getting confused here and sorry for troubling you.

herbiesjp

No problem at all

I believe you are on a tracker rate - correct?

How long is that tracker rate valid for? 2 years, 3 years?

How far into the tracker period are you - have you just started the mortgage? Are you still in the first year of the tracker?

nealnomoney

its valid for 3 years, i am into my 6th month of the first year.

herbiesjp

Ok

So in the 1st year of that tracker, you will have to pay a penalty of 5%, on the amount you need to clear the mortgage. To clear the mortgage you will need £123k and so the 5% is based on that.

The 5% is not based on the the mortgage payments you have made to date.

HTH

nealnomoney

ok, but still dont understand, very misleading they are, 5% of capital amount repaid in first year would mean to me:

6 payments of capital and interest - minus interest element x 5%

But anyways, i digress, thanks for your help.