Remortgaging advice - bad credit history in past

katchambers

Hi everyone,
We have been stuck with a Northern Rock mortgage for the last 10 years, stuck on their standard variable rate because they went bust and we had bad credit back then. This year my credit records are showing that the CCJ and the defaults we had have all finally be removed from our credit file. It looks like our credit is better now, but I don't know if it will be good enough to get a mortgage, particularly in the current climate.

Our house has gone up in value, we think that our LTV will be about 70% now, so in theory do you think it is possible we could get a mortgage on a better rate? (Our rate is 4.69%) Or do we need impeccable credit and amazing affordability in our budget to even have a shot at a new deal?

I have signed up to a credit repairing credit card, is there anything else I could do to improve our credit and chances of getting a re-mortgage with a lower interest rate?

Thanks in advance
Kat x

glosoli

If the defaults and CCJs are all off your file then its definetely time to start shopping about for better deals. Don't even necessarily have to bother with the credit building credit cards.

Lilla_D

Hi Kat,

Lenders are prepared to accept customers with credit issues within the last 6 years on even higher LTVs, so don't worry, you should be fine (subject to affordability of the mortgage, of course)

Thrugelmir

Is your mortgage on an interest only basis?

katchambers

Thrugelmir wrote: »

Is your mortgage on an interest only basis?

Yes it is. Will that be a problem?

Thanks for the advice everyone!