help choosing a mortgage with little/no redemption charge

twenty_20

hi all, new to the forum and very pleased i have found it.

i need some help in choosing a mortgage with minimal to no earley redemption charges.

i am looking for a mortgage which will allow me to sell my home within 6-8 months of buying the property and to do so without redemption charges.

due to my adverse credit i have little option but to shop in the sub prime market.

i am hoping someone will know the type of mortgage im after.

many thanks in advcance

simon

MortgageMamma

Hi Simon
Need more information but no actual recommendations would ever be made to you on an internet forum, you would be best to use a whole of market broker

twenty_20

im actually in talks with charcol (as recommended by MSE). due to get a call from him shortley.

wasn't after advise on any specific product in particular; just a type of mortgage in general.

toonfish

you will need to be looking at tracker products, with no redemption penalties at any time. These will generally involve an arrangement fee though.

MortgageMamma

Why tracker? we dont know the extend of his adverse so it could well be a ERC free fixed

toonfish

MortgageMamma wrote: »

Why tracker? we dont know the extend of his adverse so it could well be a ERC free fixed

not aware of any fixed rate where the fees would not far outweigh the benefit for redemption in 6-8 months - I'd be amazed if there is one, even with no adverse credit.

MortgageMamma

Surely that would depend on the size of the mortgage in question ;-)

twenty_20

i have just been told by a "broker" that a mortgage with no early redemption penalties within the sub prime market does not exist.

he quoted that typically the ERP is 5-6% within the sub prime market.

is he talking bullcrap and trying to set me up for a dodgy lender ?

im nervous as hell in not wanting to be sold a dodgy mortgage from a dodgy sub prime lender who will reposess my house at the earliest oppertunity.

thanks

toonfish

twenty_20 wrote: »

i have just been told by a "broker" that a mortgage with no early redemption penalties within the sub prime market does not exist.

he quoted that typically the ERP is 5-6% within the sub prime market.

is he talking bullcrap and trying to set me up for a dodgy lender ?

im nervous as hell in not wanting to be sold a dodgy mortgage from a dodgy sub prime lender who will reposess my house at the earliest oppertunity.

thanks

he is taliking crap, assuming you have a deposit. Rates may be higher but it is do-able. What is the purchase price, loan size and your income? And what are the details of the adverse.

toonfish

MortgageMamma wrote: »

Surely that would depend on the size of the mortgage in question ;-)

I'm happy for you to prove me wrong!

twenty_20

toonfish wrote: »

he is taliking crap, assuming you have a deposit. Rates may be higher but it is do-able. What is the purchase price, loan size and your income? And what are the details of the adverse.

well basically my mother wants to re-mortgage to include myself as a joint mortgage.

33k is outstanding
we need 60k
the property is worth 130k
our joint income is 15k
my mother is on DLA (disability living allowance) & state pension
the current mortgage is interest only - £187/mth - the state pays £157 - my mother £30.

i have just found out my mother has missed 9 out of last 12 months (£30) although the £157 has not been missed. (think this counts towards missed payment).

myself: 3 defaults totalling £3k - not satisfied - not in a position to clear debts yet - will do if successful with mortgage.
so you see, fairly poor credit history.

as you might imagine finding it difficult to get mortgage even in sub prime, but i know it is possible.

last thing i want tho is to use a dodgy lender !!!

my overall intention is to improve house with extra loan (60k re-mortg) and sell up, clear off all debts and improve credit files. therefore looking for a mortgage with no redemption penalties.

a tough yet unique case i'm sure u'll agree