Mortgage Arrears

pepper33

Can you change your mortgage when you are in arrears, I suppose not, but we were about to change ours, as the interest rate is going up next month, as we were on a fixed 2 year deal.

TBagpuss

when you change your mortgage, you effectively pay off the old mortgage, and get a new one. So you can, but as you are in arrears you may find it very difficult to get a new mortgage at a reasonable rate, as you will be seen as a high risk applicant, so you may find that any new deal would be more expensive than reverting to your lender's SVR

_Andy_

If you stay with your current lender and either go on to the SVR or a new product, there will be no credit checks.

If you want to change lender, no high street lender will touch it with the arrears.

pepper33

I thought that, we are stuck with Santander. The arrears will be paid back, but I suppose the credit rating will stay bad.

_Andy_

Yep it will affect any lending (secured or otherwise) for quite a while.
If you ring Santander they will explain what products/rates may be available to you.

pepper33

They have already told us, that we are going on the SVR in September which has gone up about £10, but I just don't think they are nice to deal with, especially in the current climate of people losing their jobs etc.

Thrugelmir

pepper33 wrote: »

They have already told us, that we are going on the SVR in September which has gone up about £10, but I just don't think they are nice to deal with, especially in the current climate of people losing their jobs etc.

Best to keep matters in perspective. You are in arrears. That's the issue. The answer lies in your hands, if if it requires difficult decisions.

pepper33

I know, it is all because I was ill last year, but we still kept paying some of the mortgage. thanks for the advice.

dotdash79

Have you got and agreed plan with Santander to make up the arrears and are you sticking to it?

pepper33

They wanted to capitalise the mortgage, which meant paying over £12,500 in interest and fees over the next 14 years. So they haven't come back to us about an arrangement, as I wrote to the CEO, and they are awaiting the FOS's decision.