Whats the chances of Remortgage

MobileJim

Hi all,

Looking for a bit of advice. I would love to remortgage and get a lower interest rate as I am currently stuck on a stupid varible rate with my current provider.

The problem is my credit rating sucks and due to issues in the past I have a suspended repossession order. I am currently 3 and a bit months behind in the mortgage. That being said I haven't missed a payment in over a year and a half, although a few of them were a little late. I'm pretty much past the problems I have been having and expect to be able to start catching up with the arrears soon.

I asked my current provider if they would swap me onto a better deal, they said that I had to pay off all the arrears and then stay up to date for two years before they would consider it.

I'm currently paying about £780 per month and looking at some of the offers out there I could reduce this by £200ish per month (I think), this would help me catch up so easily, in about a year or so.

House value is about £95 - £100,000
Current Outstanding loan - £78,500
Time to finish - 12 Years

As I mentioned before my credit score sucks, but as far as I can tell it is because of the mortgage issues, I don't have any other defaults, no car loans, etc. I have a bit on a credit card and a overdraft but they show up as OK on the credit file. I have a few other arrears for things but not much and they don't appear on the credit file at all.

Any advice on remortgaging would be appreciated.

Thanks
Jim

Thrugelmir

MobileJim wrote: »

As I mentioned before my credit score sucks, but as far as I can tell it is because of the mortgage issues, I don't have any other defaults, no car loans, etc. I have a bit on a credit card and a overdraft but they show up as OK on the credit file. I have a few other arrears for things but not much and they don't appear on the credit file at all.

Everything has to declared on a mortgage application. Not doing so is paramount to fraud.

csgohan4

define a bit on credit card and loans/arrears?


All that debt will impact on affordability if taking out a remortgage unless you simply go for a product switch via a customer retention product online if your offer is due to finish soon

MobileJim

Hi

Thrugelmir, of course I would declare anything like that, I just meant that they wern't currently having an effect on my credit file

csgohan4 Credit card - £1000ish Overdraft £2000 (just under). I'm not currently in an offer, its the companies standard variable rate, however they refuse to change it till I have caught up on arrears + 1 year, hence why I would like to remortgage with someone offering a better rate.

As to affordability, I have been paying £780 mth for 18 months, so I would be able to afford a smaller payment, without too many problems, mind you I don't think mortgage companies think that way.

The last time I talked to my mortgage company they said that as long as I paid off the 3.5 months arrears today, that they would consider moving me to a lower rate in a year. I really thought she was joking with me, but no, Mrs Serious, I couldn't believe it.

Jim

Thrugelmir

MobileJim wrote: »

Thrugelmir, of course I would declare anything like that, I just meant that they wern't currently having an effect on my credit file

Lenders will score you themselves using internally set policy and criteria.

MobileJim

Hi Thrugelmir,

Yes I understand that they will do that.

However what I am looking for is advice on how best to get a chance to remortgage, at the moment I am paying way more than I would if I was able to get a lower rate.

Jim

csgohan4

you will need a good broker as you already have a negative credit history due to late payments on a mortgage, which to a mortgage lender sends alarm bells.


You may not get a good rate in light of this. Low interest rates are rewarded for those who have a good credit history and large equity or deposit and therefore lower risk.

Thrugelmir

MobileJim wrote: »

H
However what I am looking for is advice on how best to get a chance to remortgage, at the moment I am paying way more than I would if I was able to get a lower rate.

Risk is priced. Your credit history will determine what's available to you. That's the bottom line. Unfortunately as your existing lender has indicated. You getting to get to grips with your own financial circumstances is paramount. There's no short cuts.

Suggest you pay a visit to the Debt Free Wannabe board. You'll find plenty of advice and support on there. No one can tell what to do. As everyone's circumstances differ.