advice needed.

innocentboy

Hi all,
I am new here, and just wanted a little advice.
Ihave an interest only mortgage with Barclays, i took the mortgage out in 1998 for £45,000, and my house is currently worth approx £160,000-£170,000, i am paying an interest rate of around about 7.3%, firstly, should i ask my lender for any new products they have, to reduce the rate of interest? secondly, if i ask for a further advance on the mortgage, of say £25.000, would they do a credit check as a matter of course? bearing in mind that i have never missed a payment? and will they expect me to up the payments on my endowment policy? the reason i ask this second question is that i don't have an endowment policy, and intend to sell the house within 5 years, to pay off the mortgage, although i have a bad credit record due to some unsecured debts.
Thanks in advance guys,

innocentboy

Is there anybody out there?

innocentboy

Ok, let me keep it simple, am i paying too much at 7.3%?

Dan_Collins_2

Yes but at 45k you have to make sure you dont pay any fees to move or for your lender to swap deals. They will credit check you unless you have a flexible reserve.

MortgageMamma

Hi Innocentboy


When you say bad credit, how bad do you mean? There are different levels of mortgage products for different credit categories, you may be able to stay with barclays or you may have to switch to a more sympathetic lender its hard to say without having full details. I don't know what barclays policy was re interest only mortgages in 1998 but todays policy states that it is ok to have an interest only mortgage with no repayment plan.

I would suggest if you think you have credit probblems that you seek professional advice, as if you make applications direct to lenders yourself and are continually declined it will have a negative effect on your credit rating, as lenders can see all your previous credit applications when they credit check you

Hope that helps a little, please ask more questions if you need to

MM