Remortgaging after arrears?

jbindebt

In 2009 we slipped into arrears for two months due to a job loss and as a result had to attend a repossession hearing. Thankfully with the support of Citizens advice and shelter we got things back on track and agreed a small additional amount each month to clear those arrears. This arrears payment is due to finish this April and my question is whether we should attempt to remortgage in this better climate to reduce our monthly payment?
I appreciate many things need to be considered-credit report, other borrowing, budgeting, equity etc.-I'm just wondering if its worth even attempting as the arrears process is just coming to an end and I assume we would be recorded as being in arrears for the last six years officially.
Just as a rough guide- approx. 13 years (from 24) left on £125000 mortgage at £870 month variable.

Thrugelmir

Much will depend on your wider financial circumstances. As it's taken 5/6 years to clear the arrears sounds as if money is tight.

There may well be reservations on the part of lenders if you apply immediately.

jbindebt

Totally agree. We are in a much better situation financially (bills paid, debts under control, credit rating gone from poor to average) and could "comfortably" just let things carry on as is. It's just that it would be "nice" to maybe shave that £870 down a bit however in the long term and put those savings to good use elsewhere. Thank you for the common sense, its appreciated.

dimbo61

Are you on the SVR with your current lender ?
Have you or will you have all the arrears cleared by April ?
Why not give the mortgage centre of your lender a call and Ask "what deals do you have for existing customers "
They can at the least tell you what your outstanding balance is and how much arrears you have if Any !
They cannot offer advice but if you can swop online without advice it is called execution only and if you are not borrowing any more money you might get a better deal.

jbindebt

Thank you. I just called and unfortunately they are not arranging any new lending even to existing customers. They said I can certainly leave to remortgage should I wish but they couldn't comment on what my chances would be. They confirmed the arrears will be cleared in April and then the fees and remaining mortgage will be all that is left. They said that should I wish to up my standard payment to what I am additionally paying then they could arrange that also.
Just some tidbits-
We are on 3.55% interest at the moment, £869 monthly inc arrears payment.
June 2014 we were...
£148000 originally borrowed.
£112442 balance.
169 months left
Cost to repay £113984 (inc early repayment £1094 applicable to 2028)


Any thoughts on should I stay where I am or give it a go?

Thrugelmir

Who is your current lender?

jbindebt

Rooftop. (I know, I know!)

kingstreet

Order all three versions of your credit file to see if your mortgage account is visible and what state it's in.

Then put them in the hands of an independent broker who can tell you what the possibilities are and at what rate.

jbindebt

Ok I'll give it a go. Thank you for the support.