Will I get a better rate now?

WestA4

A couple of years ago we bought a house we used a mortgage broker who struggled to get us the mortgage we needed, but got there eventually. We had an 85% LTV and our credit rating wasn't great including a missed mortgage payment from almost six years previously. Therefore we pay a rate of 5 ish %. Two years on and the house has gone up in value so we'd now have a LTV of 75%, we've paid off a loan, our overdraft and credit card and have an increase in salary. However the credit card payments did go through a day or two late on more than one occasion so we had default sum notices and we have one loan outstanding with our bank.

Would we be in a position yet to get a better rate? Our bank (NatWest) have some good deals at the moment do you think we should approach them or go through a broker again? Does the fact a remortgage would mean lower payments and we've clearly paid the existing amount without issue help at all?

kingstreet

Both. Check out your existing lender customer retention options and speak to a broker about remortgage deals.

WestA4

Our existing lender isn't our bank, having had a quick look at their website they don't have great rates I think they tend to lend to people with poor credit. We have private banking with NW and they have said in the past that they'd do a soft search on us but I'm not sure if we're still considered risky.

kingstreet

Sorry, silly me.

All three. Check out your existing lender customer retention options; "your" bank's remortgage options and other direct to lender options such as HSBC and YBS Group and speak to a broker about their remortgage deals.

That way you've got it all covered.

WestA4

Thank you so much for your help, I've used John Charcol in the past but our man isn't there any longer so don't have the same loyalty so will do some research.

amnblog

The increased equity helps, but maintaining all your payments on all your credit would have put you in a stronger position.


An experienced broker should be able to get you placed on a lower rate.


How low will depend on how much damage you have done to the credit file since purchase.


Good luck with it.