mortgage arrears

Conrad

toonfish wrote: »

Conrad also stil banging the "2 year fixed rate is rubbish" drum as well - regardless of personal circumstances.

If the OP will be clear of bankruptcy in 12 months as you claim, why would they want to be tied into an adverse fixed rate for 5 years?

The FSA recently highlighted the inappropriatness of 2 year deals for many people. I happen to agree that where there is a similar 3 or 5 year deal this usualy (not always) is more appropriate - sorry it cuts the old commission down a bit though!

As you will know seeing as you are a proper fit and person to be giving advice, although Bankcruptcy can be cleared in 12 months, that doesnt mean the client will suddenly have prime status.

Anyway dont listen to me, thats fine, just watch the complaints role in over the next 2 years.

CLAPTON

Back to the original poster.......

I would suggest to go over to the debt freewanabee board and post up an SOA .. full details of your income . your spending and all the debt details before making any decisions about remortaging.

You need to address the reasons why you are in the level and debt and how you are prioritising the repayments.


Without the full details its impossible to give your best advice.

MortgageMamma

Conrad wrote: »

Thats right dont use middle men for debt advice, DO USE the Citizens Advice Bureau, and Government debt advice services. My brother got all the advice he needed from the local Goverment Bankcruptcy services - all free and to the letter.

Anyway, the main point I'm trying to get accross to clients is that they should at least explore whether the advice given by the broker was the most suitable.


WHY ARE YOU SO AGAINST THIS? Why be defensive, Im in the industry and perfectly happy to admit a big proportion of brokers are not meeting thier TCF obligations, in fact Im often on courses / events where they openly admit they know nothing of it. One broker I recenly met doesnt do factfind or RWL.

Apart from sharp practice the other area of concern is FIT AND PROPERNESS.
How can an advisor who knows nothing about economics be giving advice on the most important transaction Joe Public is likely to enter into? Such people let us all down and are the type most likely to make errors of judgement such as those who have been recommending variable rate loans to vulnerable people or selling 2 year deals without factoring - in the cost of remortgaging again in 2 years - that would'nt be you would it?

You misread me conrad, I have nothing against people seeking advice on bankruptcy and other options, I actively encourage clients to do it but you were suggesting the OP goes bankrupt so long as the official receiver left their house alone - not at any point did you mention it would mess up their credit for six years and they will ultimately end up on an adverse mortgage product anyway. Also, with some bankruptcies you can end up paying large amounts back should the OR decide its possible. You were bragging about your brother walking away unscathed from a 52k debt by ignoring it for years. that is not the attitude of a responsible professional and could seriously mislead a lesser informed member of the public.

At no point did I ever say, nor did anyone else that the OP should take a two year fixed. I know they are poor value for money but they are necessary for some people and I said you should not rule it out as it could be an appropriate solution

Its all very well attempting to boast and ram your assume knowledge of FSA guidelines and good practice and TCF down the throats of other brokers who dare to have an opinion, but there's no point throwing a rulebook at someone if it is not directly relevant to the OPs question, and it is plain childish and narrow minded to assume that you know more than the rest of the brokers on here.

I also find it ridiuclous that you insinuate I, or any other broker on here does not observe best practice, and that we do not have due regard for our clients during the advice process.

Go read your tabloid.

maskean

so do you think if i get my arrears paid off another lender would take me on,if i could also get extra money on top i could consolidate all my debts which would make it easier to pay,i can afford to pay the mortgage its just that i fell behind and am struggling to catch back up,my debts are all over the place if i could it into one lump some it would be so much easier.

MortgageMamma

maskean wrote: »

so do you think if i get my arrears paid off another lender would take me on,if i could also get extra money on top i could consolidate all my debts which would make it easier to pay,i can afford to pay the mortgage its just that i fell behind and am struggling to catch back up,my debts are all over the place if i could it into one lump some it would be so much easier.

If consolidation is the route you want to take, so long as you are properly advised then that is fine, and you must understand you are securing previously unsecured debts on your property so in doing so you MUST BE 100% CONFIDENT you can afford the monthly payment. If you default in the payment of the consolidated loan amount your home may be reposessed and beleieve me when I say lenders do no mess about when it comes to missed payments and reposessing. There is a load of tosh on the FSA's website about lenders having to support and help you, but in my experience, and believe me when I say I get a lot of clients on the verge of reposession, the lenders are crude, uncourteous, un co-operative and plain obstructive. Please be very sure its the best option if this is what you intend to do.

Your proposal is entirely viable, but you really need an expert to look at your finances, your credit history, your borrowing requirements and match you to a lender/suitable product before you take this any further.

Sorry for the vagueness but adverse remortgages really are a specialised area and I feel there are far to many variables for a definite yes or no answer at this stage.

Get yourself a good whole of market broker (this means they have access to all or most lenders) preferably one who does not charge a fee as you have enough debts to pay as it is, and ensure as Conrad says they act for you on a full advice and recommendation basis. this means they take into account your personal situation and recommend a product suitable for your specific situation. An information only service is quite pointless, it simply does not work for credit impaired clients.

Good luck and sorry for all the squabbling on this thread, I know I have been the main party to it but thats because I was trying to protect you from being mis-advised making the wrong decision!

MM

Mr_helpful

maskean wrote: »

so do you think if i get my arrears paid off another lender would take me on,if i could also get extra money on top i could consolidate all my debts which would make it easier to pay,i can afford to pay the mortgage its just that i fell behind and am struggling to catch back up,my debts are all over the place if i could it into one lump some it would be so much easier.

Yes you could probably do what you want but I am not sure that this forum is the best place to ask. Any advice you get cannot be taken as advice according to forum rules. as it is advice has been given that clearly is opposing. one thing to remember is that the commission is very good on adverse products. I would recommend an independent adviser not a whole of market one since the independent has to offer the option of pure fees and will search whole of market. 2 yrs is too short for the reason Conrad gave.
I would use the internet and ask the opinion of more than one independent broker. You could look on google for a no fees broker but check they are independent as well.

MortgageMamma

lets have a debate. how many adverse borrowers would prefer a shorter term product to allow them to progress onto a prime rate when their credit has been improved, and how many adverse borrowers would like to fix for a longer period at a higher rate, say five years, for the sake of saving for example an additional £595 on an arrangement fee.

I don't see what independent has to do with it helpful, its an outdated and misleading term in my opinion, as most brokers offer a fee and commission rebate option without having to go through the whole "I'm independent" rubbish that the general public do not understand.

By the way there are lots of other searches engines but I don't expect you rate so highly under those keywords helpful, perhaps you could divulge the keywords for msn, yahoo and various others that will point to your site?

Mr_helpful

Interesting.
Fact Many lenders want you to be discharged 3 or more years. 2 yr pretty crap advice here dont you think. with the general trend for inflation and so interest rates to rise a longer fix even at todays adverse rates may not turn out so bad especially when fees etc taken into account.
I wonder why the FSA tells you to seek "independent" advice. Can you show me a link where they recomment a whole of market advice?
As for that waffle about keywords. Google is the most used search engine in the UK which is why I recommend it. It also shows several sites per page and I advised the OP to seek advice from more than one. A site that shows up well on google tends to show up just as well on MSN or Yahoo or excite etc etc
If you must know about keywords then one that my site uses is "whole of market brokers" which I put in because of the ignorance of advice on this forum and it gives me a second page rating. Google and other engines take into account quite alot of things when sorting out whether you rank well or rubbish. A rubbish site is unlikely to get in the first few pages of any search engine

MortgageMamma

Mr_helpful wrote: »

Interesting.
Fact Many lenders want you to be discharged 3 or more years. 2 yr pretty crap advice here dont you think. with the general trend for inflation and so interest rates to rise a longer fix even at todays adverse rates may not turn out so bad especially when fees etc taken into account.
I wonder why the FSA tells you to seek "independent" advice. Can you show me a link where they recomment a whole of market advice?
As for that waffle about keywords. Google is the most used search engine in the UK which is why I recommend it. It also shows several sites per page and I advised the OP to seek advice from more than one. A site that shows up well on google tends to show up just as well on MSN or Yahoo or excite etc etc
If you must know about keywords then one that my site uses is "whole of market brokers" which I put in because of the ignorance of advice on this forum and it gives me a second page rating. Google and other engines take into account quite alot of things when sorting out whether you rank well or rubbish. A rubbish site is unlikely to get in the first few pages of any search engine

The point you are missing absolutebounder is that nobody has actually recommended anything, nor will they on an internet forum. Nobody knows the extent of the OP's arrears so nobody is in a position to say whether it woudl take three years to clear their credit history. The arguement I put forward was not to discount a two year fixed as it "could" be the right solution for the OP.

i find it strange that you barely visit the mortgage boards lately, but when you do you frequently suggest googling/keywords to MSE forum users. If its not to direct traffic to your own website then I can only assume you have a financial interest in google.

Its the easiest thing in the world to sit around quoting FSA terminology, but you are not stupid, you know as well as I do that its open to interpretation and some of the phrases and terminology used by the FSA is misleading and unclear to the consumer.

payless

confused here MM are you replying to MrHelpful or absolutebounder ?