After mortgage arrears

Bluerover

A question for a chap at work after mortgage arrears how long does it take for them to be "in the past" enough to get a remortgage (if he stayed put and did it up) or new mortgage (if he sold, and moved on) he has in his own words dubious credit history but has bucked up his ideas and sorted himself out.

I would have said 6 months.....but I am guessing.

The arrears are now clear, and he has mortgage of £40k and a house worth £180k.

Thanks.

spinks

From past experience its been 12 months but have known some lenders to offer a better rate if there were no arrears in 24 months.

Things may have changed since I last had dealings. HTH.

Bluerover

Thank you much appreciate the reply.

luckyfool

12 months clear is normally going to put you in a position to get a remortgage, especially with that amount of equity.

Who are they with currently? Some lenders will offer them a new deal as long as they are back up to date currently, or are up to date and have made the last 3 payments on time. That could offer a faster route to a new more competitive rate if they are currently on a standard variable rate.

cheers

Luckyfool

sarkin

Some lenders will still offer a mortgage with 1 missed in the last 3 but the rate is not very competative. Then you have a sliding scale down to none missed in the last 36 months. Best thing to do is tell yourmate to contact a mortgage broker as they have access to all the sub prime lenders, they may even get into a high street lender depending on credit score. I cant see there being to many problems in remortgaging but the rate may not be the best out there.

Bluerover

Thanks again all, I "thought" that he might be better off waiting till he had paid sort of 3 -6 repayments since clearing the arrears, but hadn't said so as I wasn't sure. Yeap he's on the current variable rate, with C&G.

I will pass on the advice about the "mortgage broker" Thank you.