Thinking Ahead

RelievedSheff

We are currently on a two year fixed rate deal that we took out with Kensington to purchase our forever new build home. The rate isn't great which reflects my credit history which has two CCJ's on file. One unsatisfied which is due to drop of my credit file in October of this year and one satisfied which will remain on my file until July 2021. But we were happy to pay the inflated rate to secure our forever home and it is only for two years.

The months are already flying by and it won't be long before we need to weigh up our choices about remortgaging.

Our current two year fixed deal will end in April 2021. But the satisfied CCJ won't drop off my file until July 2021. So would we be better off sticking out the variable interest rate with Kensington for a few months until the CCJ drops off the file or would we be able to remortgage with a mainstream lender at this point with a satisfied CCJ that is almost six years old?

There will be (hopefully) no other adverse credit on our credit files, we will be looking for about 2.5x our joint income, there will be six monthly payments left on a car HP agreement and about £10k spread across four credit cards between us.

[Deleted User]

A satisfied ccj 6 years old shouldn't cause you any issues getting mainstream rates assuming rhe rest of the case is solid.

I would be just checking the expected loan to value at remortgage point to see if overpaying at this point will give you better rate bandwidths.

Meet with a broker about 5 or 6 months prior to product end date as can secure a mortgage offer that far in advance. Will also give you a chance to try lenders and still have time to switch if they decline

ACG

You do not say what the LTV will be, but to be honest with 22-23 months mortgage payments on your credit report, no real stretch on affordability (I am assuming) and the CCJ being 5-6 years old and satisfied I would expect you to be looking at normal rates.

RelievedSheff

ACG wrote: »

You do not say what the LTV will be, but to be honest with 22-23 months mortgage payments on your credit report, no real stretch on affordability (I am assuming) and the CCJ being 5-6 years old and satisfied I would expect you to be looking at normal rates.

From our estimates of what we will owe at the end of the term we will be looking at about 82%LTV assuming no great movement in house prices in the next couple of years.

Affordability won't be a problem and we will be looking to reduce our mortgage term down to about 12-13 years with a 5 year fixed rate deal.

Our old mortgage of 12 years will also still be showing on our credit files in a couple of years with no missed payments, etc. So we should be able to prove we can pay and on time.