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Advice needed- Remortgage with adverse credit/ arrears?
skywalker_20
Posts: 7 Forumite
New to this site so thanks in advance for your help.
Basically, my mum has a mortgage with GMAC which fell into arrears last year/ early this year - 6 months payments. The payments were £1200 on fixed rate.
Eventually after burying head in sand etc she sorted finances. She had arranged to repay arrears at £50 per month on top of mortgage with GMAC but they still took to court to protect themselves (understandably) and an SPO was granted in July this year. Since June all payments and arrears arrangements have been kept perfectly but fixed rate ends on 01/01/08- sending payments up by £170 per month and putting her back in financial difficulty just as she's getting back on track.
Is it possible to arrange a remortgage if you are subject to a possession order (albeit suspended on terms which have not been breached)?
Will GMAC be able to offer a new rate or is this pointless?
Current outstanding amount is around £160k, house value currently around £210k.
The idea will be to reduce monthly payments. Is it worth having a look around or is she best (or has no option but) sticking with the £170 rise.
** further advice - since the £50 p.m arrangement agreed at court for repayment of the arrears, GMAC have been charging a monthly £50 fee for being in arrears, which means nothing is actually coming off them. Is this allowed? Surely that means she entered into an arrangement which (unknowingly) was a waste of time and she will be charged this extra £50 penalty for the rest of the 22years remaining?
Basically, my mum has a mortgage with GMAC which fell into arrears last year/ early this year - 6 months payments. The payments were £1200 on fixed rate.
Eventually after burying head in sand etc she sorted finances. She had arranged to repay arrears at £50 per month on top of mortgage with GMAC but they still took to court to protect themselves (understandably) and an SPO was granted in July this year. Since June all payments and arrears arrangements have been kept perfectly but fixed rate ends on 01/01/08- sending payments up by £170 per month and putting her back in financial difficulty just as she's getting back on track.
Is it possible to arrange a remortgage if you are subject to a possession order (albeit suspended on terms which have not been breached)?
Will GMAC be able to offer a new rate or is this pointless?
Current outstanding amount is around £160k, house value currently around £210k.
The idea will be to reduce monthly payments. Is it worth having a look around or is she best (or has no option but) sticking with the £170 rise.
** further advice - since the £50 p.m arrangement agreed at court for repayment of the arrears, GMAC have been charging a monthly £50 fee for being in arrears, which means nothing is actually coming off them. Is this allowed? Surely that means she entered into an arrangement which (unknowingly) was a waste of time and she will be charged this extra £50 penalty for the rest of the 22years remaining?
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Comments
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Answered on another thread. Cheers.0
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It might be possible - but this would need a lot of discussion with an adviser
The current credit crunch scenario has made placing cases like this very difficult, but there may be some options available
First off, see what Gmac can offer you, if anything. Then have a word with a fee free whole of market adviser and let them see if they can find a deal for your mum.
Does she have any other debts? What is her income?I am a Mortgage AdviserYou should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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