Oh s**t - mortgage rising to 7%!

smiales

Hi everyone,

Just had letter from mortgage company advising that we are coming to end on our fixed rate of 4.9% in July, then its rising to 7.1%. Currently pay £720pm but it will rise to £870pm!

Should we try and get new mortgage in place before BR or will mortgage company just put it up after we are declared BR anyway?? I'm really stressing now, should we just sell up now and get out?

Is it possible the OR will just insist on this anyway, no equity but if we rented (be looking at £600pm) we would have more left each month for possible IPA??

I'm so stressed.

gettingitsorted

Hi smiales

if theres no equity in your house its probable that you would be able to buy your property back off the OR for a £1 plus fees ,so if you could switch mortgages and get a lower fixed rate then i would deffinatly look into it

read here for a better guide to property http://www.insolvency.gov.uk/guidanceleaflets/home/home.htm

smiales

Should we do that before going BR? I'm having a very stressy day today. Do you think the OR will be ok with our payments being that high?? Also what do you reckon our chances are at getting a lower rate with our crappy credit??

Any recomendations for mortgage companies?

gettingitsorted

yes i would do it b4 bankruptcy as after you will find it very hard to get a decent rate ,i know its stressful hun ,i doubt the OR would have any issues on how much your mortgage is a month ,the best advice i can give you is to contact your mortgage provider and ask if they can do you a better deal if not find a whole of market broker one who does not charge a fee i can give you a link to the brokers we used if you want they have been reccamended on here many times and are 100% legit .