Re-mortgage after bad credit

oliviasmummy

A few years ago we got into a situation where we were almost bankrupt. We arrange a DMP with our creditors and paid this for over 5 years. I was then diagnosed with cancer and we were paid out my life insurance which we used to pay off all of our debt, plus a loan attached to our nothern rock mortgage. We paid £10,000 off our mortgage, did some House renovations and purchased a new car, the rest we used the rest to cover me being off work for almost a year.

We are now 2 years down the line. Everything has gone from our credit file for over a year now and we're slowly building our credit ratings back up. In a strange way my diagnoses was a blessing for our finances. We are now hoping to change our mortgage whilst interest rates are still low as we're still stuck on the northern rock together mortgage at over 4%. How long should we wait before we apply to remortgage? We don't want to borrow anymore we just want to change to a better deal in the hope we can continue paying what we are now and pay it off sooner. House is valued around £100k we owe £83k on the mortgage.

foxy-stoat

For the best rates try and apply when your less than 80% LTV, so either overpay or wait until your property increases in value or you have made £3000 worth of capital payments.

If you can get an upto date valuation you may already be less than 80%, ideally less than 75% would be better.


Speak to a broker, am sure you will do better than Northern Rock.