Not Re-mortgaged in 10 years....

darrenmcneill

Hi,

I have a property that I purchased from the council 7 years ago, and I have never remortaged it, im still on my original agreement that I had when I first purchased it. I purchased it for £44,400, and have £36,400 remaining (Monthly payments of £248) - I have paid £20,832 with £8000 off my mortgage.

A similar property sold for £50k (May 2012).

I have a really poor credit rating now as since then I have cleared all my debts (I am now debt free- as of November 2014), but had use a charity organisation (CCCS) to negotiate my debts etc which meant that I have had 5-6 years worth of defaults on my account.

How will this affect me if I try to re-mortgage (As in make me worse off)? Its one of the reasons why I have not tried to? I dont want to release equity, just make sure that Im getting the best repayment option that I can.

Advice would be greatly appreciated.

themull1

It might affect it, why not speak to a broker.?

lee111s

It depends, what interest rate is your current mortgage on at the moment?

If it's low enough you could just overpay.

Thrugelmir

Speak to your existing lender. See what they have to offer.

darrenmcneill

Contacted my lender and got a lower rate, not saved much (£100 per year), but that will go back into paying the mortgage.

Established that I can pay up to 10% overpayments each year, which is enough for me, as I will try and overpay when I have spare money