Remortgage Problem. Self cert/Kensington.

homer_j_3

Do not put yourself in more debt with the risk of failing to keep up with that too when rates escalate further.

I can't force you to sell your house but I would put my house on it that you will wish you had if Kensington start turning the screws further. I used to work for the company that act for Kensington - i.e. the people that send you arrears letters and calls and I have seen first hand what they have to do when certain levels of arrears occur.

kenshaz

Bite the bullet ,the most painful is usually the best,and take homers advice.
Good luck and I wish you well ,if only these companies realised how harsh the contract is,but they probably wouldn't care ,because you are their bread and butter and they target you,your choice was limited.
James advice was good but it would take some doing,and it would be a hard road ,you know your circumstances and your personality and the choice is yours.

jamesd

homer_j, selling looks like poor advice at this point in time. Selling a property with "very little equity" means taking on 7,000 in immediate debt for the ERC at the time of the sale. A loan actually produces less debt than selling in this particular situation.

A loan of 2000 plus interest at the two year point might amount to as much as 4000 at a truly high interest rate. Selling when the ERC is no longer payable, if a remortgage couldn't be obtained, would result in perhaps 4000 in debt instead of 7000. That's a notable improvement on the situation today.

Meanwhile, interest rates in two years are likely to be lower than today and there is a fair chance that a mortgage at a lower rate than Kensington's will leave ample funds to repay the loan with no need to sell.

What's your experience with how Kensington will handle a sale which leaves 7000 in ERC unpaid?