Remortgage with debt arrears (not mortgage)

ShinyShoes

Hi,

My fixed rate deal comes to an end on 31 March 2014, so in the normal course of things I would start looking to for a new deal.

However, 2013 has been a disaster for me, and with agreement from lenders, I am in arrears with my credit card (DH out of work meaning my salary is supporting our family and bills etc). They keep saying they will pass the debt over to debt collectors etc, but nothing has been done as yet. My credit file just shows defaults and arrears, no CCJs.

Will I be able to remortgage?
I'm currently with Halifax on a fixed rate of 5.99%, mortgage is £175,000 (90% of purchase price) and current balance is now £169,000, and I think the current market value is up on what we paid due to the rewiring and new boiler etc. we've installed.

Is it best I stick with Halifax (they offer a fee free remortgage) or am I able to shop around?

There is hope on the horizon as DH is waiting for the outcome of an interview he had last week, the salary's not great, but it will help with cash flow slightly in that I might be able to up my credit card payments (still will be below the minimum required though).

Thanks for any advice given.

ChopperST

If you stick with your current lender, provided you have kept up payments with them, there will be no credit check. Also bear in mind that the Halifax's follow on rate is currently 3.99% so your mortgage payments will drop in March. You could use this as a window of opportunity to clear your arrears.

I'm sure one of the mortgage advisors will give you a more detailed account but you will find it difficult to move providers when you are in arrears and late on payments.

Whatever you do DO NOT fall behind on your mortgage payments with Halifax as that would ruin all chances of getting a new deal with them.

Do bear in mind the only way interest rates are going to go is up the question is only when...

GL.

ShinyShoes

Thanks, yes I know they are due to go up, so hoping to fix again and if it frees up some money each month too that would really help.

Dave_Ham

Your best situation here is almost certainly to stay with the Halifax.

You need to ascertain your index valuation as that will determine if you need to pay for a re-valuation in order to achieve the loan to value threshold you want/need

Selected staff in branch or on phone can tell you this, or a broker can tell you within about 12 hours as we have to request this information.

The product transfer rates (what you are potentially going to do) are the lowest they have been for a while and you can book this rate a couple of months early..

Good luck

dimbo61

Read the mortgage paperwork and check what happens when your fix ends!
Some go onto the SVR while some like mine when onto a tracker deal !!!!