Remortgage with low credit score

razorblade73

In the crash I inevitably ended up with a huge change in circumstances and my own personal debt bubble burst. As a couple we ended up with DMP which ends this May yay! we remortgaged in the March of 2007 in to a 3yr fix rate with Alliance and leicester, the SVR is now 4.99% tried to change with them in 2011 and was refused due to circumstances. I now find myself almost not in debt, with a LTV of 54% and an massively improved situation financially but a terrible credit score. We have been granted credit improving cards that we pay off in full every month, my noddle score is currently 538 in the very low to critical area. All this said we have never missed a mortgage payment and when the DMP is finished I intend to use the surplus to pay the mortgage quicker. My question is who can help me reduce my interest rate on my mortgage. I want a 10 year lifetime tracker with around the 1.5 - 2% mark, we could easily afford this and looking through some providers I can see this type available to me except I know I'll be refused on the grounds of my score. Any advice at all?

TopperHarris

Your score means nothing. Your circumstances are more important. Ignore the score completely it is no indication of anything. Only you can see it, no one else.

razorblade73

I think you are mistaken

marksoton

razorblade73 wrote: »

My question is who can help me reduce my interest rate on my mortgage. I want a 10 year lifetime tracker with around the 1.5 - 2% mark, we could easily afford this and looking through some providers I can see this type available to me except I know I'll be refused on the grounds of my score. Any advice at all?

A mortgage broker.

What you want and what you can achieve may be two very different things given your circumstances.

razorblade73

Anyone come to mind? I've looked in to bad credit mortgages and the rates are awful, It's not worth even thinking about if it's going to cost more in the long run.

Dandytf

Hope you don't mind me asking, did you re mortgage prior to or whilst on dmp?

I ask as my 5 yrs fix finishes mid 2017, which I agreed before starting sc dmp which runs until 2019.

marksoton

razorblade73 wrote: »

Anyone come to mind? I've looked in to bad credit mortgages and the rates are awful, It's not worth even thinking about if it's going to cost more in the long run.

You need to find an independent broker. But even then i doubt you'll get the sort of rates you've quoted.

razorblade73

I remortgaged just before the crash, got in to a fixed rate at 5.2% then interest rates dropped to zero and I was fixed, five years later my company go to 4.99% when the rest of the industry are offering anywhere from 0.75% to 3%. My DMP started in 2010 by then I had defaults coming out of my ears and my credit score sucked big time. 2014 my financial situation returned to better than ever, took huge chunks off my debt with it finishing this May, I'd like to just bring my interest rate in line with the rest of the sector but I realise every application will damage my chances, I've got 6 more years to clear my record from the date of the last arrears which means 6 more years paying more than I need to.

TopperHarris

razorblade73 wrote: »

I think you are mistaken

Mistaken? How so?

marksoton

razorblade73 wrote: »

I remortgaged just before the crash, got in to a fixed rate at 5.2% then interest rates dropped to zero and I was fixed, five years later my company go to 4.99% when the rest of the industry are offering anywhere from 0.75% to 3%. My DMP started in 2010 by then I had defaults coming out of my ears and my credit score sucked big time. 2014 my financial situation returned to better than ever, took huge chunks off my debt with it finishing this May, I'd like to just bring my interest rate in line with the rest of the sector but I realise every application will damage my chances, I've got 6 more years to clear my record from the date of the last arrears which means 6 more years paying more than I need to.

You'll only be able to mortgage at the rate lenders are prepared to lend. But your best chance of a preferable rate will be via a broker.

razorblade73

Perhaps I should have said credit history rather than score, my current circumstances are viewed with an eye to any historical issues so what I guess I'm saying is ignoring the score is of no use to me.