We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Obtaining Fixed Rate Mortgage with Awful Credit Rating

Options
Good afternoon, looking for some advice and assistance concerning my on-going quest to obtain a fixed rate interest only mortgage. I am currently with Chelsea Building Society on their standard variable rate mortgage. My credit rating is abysmal due to numerous CCJ’s and Loan companies having gone to court to secure the loan debts on the property. I also have arrears on the mortgage account of £1400.
Chelsea will not entertain moving me to a fixed rate mortgage until the arrears have been cleared and I have made 12 months mortgage payments on time. Looking to get some stability and security to my mortgage payments fixed, as at some point interest rates are going to go up.
Any advice or suggestions greatly appreciated.

Comments

  • libf
    libf Posts: 1,008 Forumite
    Try a broker who deals in adverse, but it doesn't sound hopeful... Definitely need to get the mortgage arrears cleared as a priority before doing even that.
  • Thanks for the reply. That is what I figured re the mortgage arrears. I guess just hoping for another route as it is going to take me a long time to clear the mortgage arrears.
  • marksoton
    marksoton Posts: 17,516 Forumite
    johnd73 wrote: »
    Good afternoon, looking for some advice and assistance concerning my on-going quest to obtain a fixed rate interest only mortgage. I am currently with Chelsea Building Society on their standard variable rate mortgage. My credit rating is abysmal due to numerous CCJ’s and Loan companies having gone to court to secure the loan debts on the property. I also have arrears on the mortgage account of £1400.
    Chelsea will not entertain moving me to a fixed rate mortgage until the arrears have been cleared and I have made 12 months mortgage payments on time. Looking to get some stability and security to my mortgage payments fixed, as at some point interest rates are going to go up.
    Any advice or suggestions greatly appreciated.

    You've answered your own question. Chuck in the CCJ's and it aint great.

    Until you can show some financial stability no lender will offer you competitive rates. High risk=High rates.

    Your energies are best spent trying to improve things for the longterm.
  • You're unlikely to find a lender that will take you on if you're in arrears I'm afraid.
    I am a Mortgage Broker
    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it.
    This signature is here as I follow MSE's Mortgage Adviser code of conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 350.9K Banking & Borrowing
  • 253.1K Reduce Debt & Boost Income
  • 453.5K Spending & Discounts
  • 243.9K Work, Benefits & Business
  • 598.8K Mortgages, Homes & Bills
  • 176.9K Life & Family
  • 257.2K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.