Can we change our Mortgage if...

cevans454

we were made bankrupt in September 2008? We had to give the deeds of the house to the OR but as we were in negative equity we bought the house back for 1p. In all of the time that we have had a mortgage we have never ever missed a payment, even when we were bankrupt.

We are with Santander on a variable rate and are worried that if interest rates rise this year we will struggle with the payments and don't want to end up where we were before. We have in the past tried to increase our mortgage payments (when my husband had regular overtime at work) and reduce the length of the loan period but Santander said that we weren't allowed and would have to ask the OR for permission even though we bought back the house.

We are wanting to change to a fixed rate but the thought of contacting Santander or the OR makes us physically sick. Could you advise please?

Thankyou

National_Debtline

Hello there,

It is assumed you are now discharged from the bankruptcy? You should be able to go ahead and negotiate a new deal. You could be credit checked (especially if you're looking to change lenders) - the bankruptcy will still be showing which could significantly hinder your options. The bankrupt will fall off your file in September next year so you may find it far easier to get a better deal after that point.

Do seek financial advice to ensure you're aware of the very best deals.

Best wishes,

David @ NDL.

luvchocolate

BR will fall off in Sept this year....may be an idea to wait until then if you can

arcon5

Worth noting, if they ask about BR you still have to answer honestly - but if they don't ask then it won't be so obvious as it won't be listed on your credit file.

Though I think ops worries are about the more imminent future.