Rent or keep on hoping?

Trafford321

Looking for some advice really.

We accepted a NR mortgage in 2007 this was interest only. We have paid this since then and are now on their SVR.

We had a together mortgage but we declared ourselves BR in 2011. Obviously, we aren't the top of anybodies credit list. We have a family now, our home is incredibly small and in honesty we could do with a little more space.

Do we have any hope of even remortgaging? We haven't approached a mortgage broker or anything like that as we don't want to waste money paying a fee.

Have we wasted the last 9 years? Is there something we should be doing? We don't discuss any of this with anyone we know, so I'm hoping for some direction please.

Thanks

csgohan4

So you are still on interest only at present?


If you are, have you any plans on paying off the mortgage when your term finishes?


You could try retention products which don't require credit checks, online.


But the issue is dependant on the first question

ACG

You have probably not wasted anything as the rent would have been more than the mortgage I imagine? If you are in trafford, house prices have done pretty well there over the last 2 years in the main so again you have probably benefitted from price rises.

When were you discharged from bankruptcy? If you have been discharged at least 3 years and there have been no issues since then there could be options, but you would probably need a 15-25% deposit.

It will be a job for a broker, but there is the potential for high street rates.

Trafford321

Thanks for your reply. Yes still interest only and no, absolutely nothing in place to pay it off.

Trafford321

I'm not in Trafford anymore does anyone no how much a broker is I'm imagining around £500?

You're right it has been a lot cheaper than renting, thankyou for reminding me its not all been a waste!

ACG

It varies from £0 to a couple of grand..
With a fairly recent bankruptcy in the background its probably going to be a bit more than £500.

Trafford321

Wow, had no idea it went up to that much. Maybe we should just be overpaying but it makes it quite a hefty amount each month then.

There bigger cheaper houses where we live its nuts! If we had 9k equity would this make a difference?

Thanks again

ACG

Your going to need 15-25% deposit.
I dont have the figures to work off, but your not going to get it through at 95% LTV. It does not matter where that deposit comes from, gift, equity, savings etc.

Brokers vary, but it can be a false economy cutting corners at the broker stage. Like any industry, there are good and bad brokers. Cost isnt an indication of who is good or not but at the same time trying to save a few quid at the broker stage could be the difference between needing a 15% deposit over a 25% deposit or paying 3% interest rather than 6%.

Trafford321

Yeah so we don't have a hope in hell! We are skint and stuck.

That's what makes me wonder if this is all a waste of time. There is no end in sight, we never have that much spare that we can save aswell as live. Not enough to make a significant difference anyway.

Thanks for your help though.

amnblog

Wasted 9 years? You have managed to own your own home for 9 years and managed to hang onto it despite major financial problems.

upoiupou

Trafford321 wrote: »

Yeah so we don't have a hope in hell! We are skint and stuck.

That's what makes me wonder if this is all a waste of time. There is no end in sight, we never have that much spare that we can save aswell as live. Not enough to make a significant difference anyway.

I'd focus on finding ways to increase your income, make do and save. I looked at what you've posted previously on the forum and you posted at the beginning of the year about getting a loan to do improvement work including a "cheap conservatory". That might not have come to anything, but the fact you were thinking about it leaves me confused about your priorities.

Your thread title is "rent or keep on hoping". It's not hoping that's going to change your situation, but planning and acting.

Maybe spend some time in the debt free wannabe section and perhaps post an SOA there to get some input?
http://www.stoozing.com/calculator/soa.php