remortgage with bad credit

ste1406

hello everyone, this is my first post and i don't know if i am putting it in the correct place but here goes:-
i currently have a mortgage with hsbc for approx £20K. due to debt problems i took out a secured loan last year with sppl for £25K to repay some of my outstanding debts. they are linked to the LIBOR interest rates and the repayments are now extortianate, the current rate being approx 10%. i wish i had never done this now.

i earn £18K per year and we get tax credits of £4K per year and my house is valued at £100K, so i have some equity in it at least.

i still have a couple of defaults on my credit file but am wanting to remortgage as if the interest rates on the sppl loan keep increasing every 3 months as they are I am not going to have any money to pay anything, i'm struggling now.

in order to get out of this mess i have contemplated using one of these companies that buy your house and then you rent it back. as anyone had any experience of these. i just feel it is the only way out as i am not going to get a mortgage with a high street lender. my only other option would be to get a remortgage with another sub-prime lender at a cheaper rate and not fixed to the LIBOR interest rates. I really do feel stuck so any help would be appreciated.

sarkin

You have loads of equity so I am sure that a lot of lenders will do the remortgage.

Besides the defaults do you have any missed payments on the mortgage or loan?

What ever you do do not approach those companies that rent and buy back until you have explored every other avenue.

I would suggest you contact a whole of market mortgage broker they will be able to help you

ste1406

many thanks for that, it is much appreciated. i do not have any missed payments on my mortgage or loan. how would i find a whole market financial advisor. i live in yorkshire, are they listed in the yellow pages or could i google it. my total repayments on the mortgage and loan at present are £548.00 per month, but the secured loan with sppl has just gone up by £24.00 in the last quarter because it's linked to LIBOR.

if i could remortgage i would look to repay the defaults in full and just have my mortgage payments but i just want something more stable than i have at present.

i take from what you have said that these companies that buy your house and then rent it back are not a very good option, but it looks a good option when you are struggling.

i will take your advice, thank you.

herbiesjp

YOu will be able to get a re-mortgage with another lender if need be.

You may not get high prime street rates, but you will be far better off than the 10% you are paying on the SPML secured deal

Only look at the rent back schemes as a last resort

You should have plenty of other more viable options to look at first - those companies thrive on vulnerbale people who believe they are in a desparate situation - but you are not

Look for a good fee free whole of market adviser and they will be able to help you out easily