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Remortgaging with bad credit rating
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rachnbri
Posts: 953 Forumite
I'm jumping the gun a little as I'm not looking to remortgage until July 2008 but I'm trying to get some advice so I'll know where I stand when the time comes.
I took out my first mortgage July 2006 on a 2 year fixed rate deal. I have a really dodgy credit history including a CCJ and various other late payments, missed payments etc. I previously had an attachment of earnings because I stopped paying my council tax and I had a credit card and a loan that I stopped paying and ignored the letters because I didn't know how to cope with them. I also had a couple of fairly small catalogue debts which I also ignored. (Basically I stopped opening letters and just put them in the bin).
I know that I don't have to justify myself on here but I will say very briefly it was during a very bad period in my life when I was divorcing my ex husband after several years in an abusive relationship and I was cultivating a bit of a drinking problem and spending way beyond my means for no other reason than it made me feel better.
Anyway because of my credit history I couldn't get a mortgage with a high st lender and ended up getting a fairly decent fixed rate deal through Infinity mortgages (a sub-prime lender I think). This comes to an end in 11 months and obviously I want to negotiate another good deal.
In the year since I've had my mortgage I have never had a late or missed payment and have not incurred any more debt. However I have also not got much closer to resolving my previous debts than I was before. I have payment plans in place which are being met but it will be a very long time before it's cleared.
My question really is, will this be taken into account when I remortgage ie will I be seen in a better light than I was when I originally took out my mortgage or will I have to go to a sub prime lender again? If so how likely are my current lender to offer me another good fixed rate deal? (thereby avoiding the fees involved with changing mortgage provider).
I have a relatively small mortgage by today's standards (£70000) - I don't know if that makes any difference?
Sorry for all the waffle, I'm totally green when it comes to this sort of thing and don't really understand how it all works. Any advice would be very greatly appreciated!
I took out my first mortgage July 2006 on a 2 year fixed rate deal. I have a really dodgy credit history including a CCJ and various other late payments, missed payments etc. I previously had an attachment of earnings because I stopped paying my council tax and I had a credit card and a loan that I stopped paying and ignored the letters because I didn't know how to cope with them. I also had a couple of fairly small catalogue debts which I also ignored. (Basically I stopped opening letters and just put them in the bin).
I know that I don't have to justify myself on here but I will say very briefly it was during a very bad period in my life when I was divorcing my ex husband after several years in an abusive relationship and I was cultivating a bit of a drinking problem and spending way beyond my means for no other reason than it made me feel better.
Anyway because of my credit history I couldn't get a mortgage with a high st lender and ended up getting a fairly decent fixed rate deal through Infinity mortgages (a sub-prime lender I think). This comes to an end in 11 months and obviously I want to negotiate another good deal.
In the year since I've had my mortgage I have never had a late or missed payment and have not incurred any more debt. However I have also not got much closer to resolving my previous debts than I was before. I have payment plans in place which are being met but it will be a very long time before it's cleared.
My question really is, will this be taken into account when I remortgage ie will I be seen in a better light than I was when I originally took out my mortgage or will I have to go to a sub prime lender again? If so how likely are my current lender to offer me another good fixed rate deal? (thereby avoiding the fees involved with changing mortgage provider).
I have a relatively small mortgage by today's standards (£70000) - I don't know if that makes any difference?
Sorry for all the waffle, I'm totally green when it comes to this sort of thing and don't really understand how it all works. Any advice would be very greatly appreciated!
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