Can we remortgage with arrears?

Kelstar73

Hi,
I was just wondering if we would be able to remortgage mainly to bring down the rate and monthly payments if we have arrears with the lender?

We are currently on an interest only mortgage of £243k with repayments of £1591 per month which we cannot afford to pay.

We have contacted our lender and they said that they could bring down the rate??? but only if we clear the arrears.

We are not in a position to do that so I just wondered whether any lenders would do a remortgage with arrears in place and also the fact that my husbands credit rating is less than good.

Any advice would be greatly appreciated.

Thanks.

Debt_Free_Chick

Kelstar73 wrote: »

We are not in a position to do that so I just wondered whether any lenders would do a remortgage with arrears in place and also the fact that my husbands credit rating is less than good.

I think that might be a tough call. You would need to remortgage for a higher amount i.e. the redemption figure on your current mortgage PLUS the arrears ... and there might be other costs too (unless you get a deal that pays your survey + legal fees).

What's the current LTV (in other words, what's the property value, the outstanding mortgage and the arrears)?

You might be worse off - as you might end up with a sub-prime rate.

What are the arrears? Have you battered down all your non-essential expenses? Would a debt management plan help?

MortgageMamma

Kelstar73 wrote: »

Hi,
I was just wondering if we would be able to remortgage mainly to bring down the rate and monthly payments if we have arrears with the lender?

We are currently on an interest only mortgage of £243k with repayments of £1591 per month which we cannot afford to pay.

We have contacted our lender and they said that they could bring down the rate??? but only if we clear the arrears.

We are not in a position to do that so I just wondered whether any lenders would do a remortgage with arrears in place and also the fact that my husbands credit rating is less than good.

Any advice would be greatly appreciated.

Thanks.

I think the most appropriate thing for me to ask considering your post is, who is your current lender? are you with a prime, high street lender or a non conforming lender?

When did you take the mortgage? are there any early repayment penalties on the mortgage? if so, how much? what is the mortgage rate you are paying?

What has happened to put you into arrears initially? have you resolved the issue? are you confident even if you did get the mortgage marginally cheaper you could comfortably pay it?

How many payments have you missed with your lender? have you made payment arrangements with them? has the lender started court proceedings with you?

One cannot assume the answers to any of these questions and offer advice on an internet forum, and without more detailed information about your situation including your earnings and any other credit commitments, nobody here could ever possibly advise you of the right course of action.

You need professional help. Be careful with the debt counsellors, they will often push you into an IVA or a debt management plan when its not really the right solution.

Kelstar73

Thank you for your replies.

The balance on the mortgage is £243k. The arrears are £1700 and the repayments at the moment are £1591. The lender is Abbey.

It's only in my husbands name as I'm not earning due to being a stay at home mum.

I don't know where we go from here.

]Any advice would be appreciated