Stuck on an old interest rate due to arrears

nicnola

Can anyone offer any advice please.  We are with Yorkshire and on an interest rate of 4.55%, we have arrears that we have been paying off at an agreed amount monthly whilst maintaining our monthly payments.  There are far more competitve interest rates available with yorkshire but we have been denied a product transfer due to the arrears.  We have been out of our fixed rate deal for some years now and are on their SVR.  The arrears were accrued due to the collapse of husbands business and we have been paying off a set amount ever since. We previously went to court to defend a reposession order and have a suspended order.  If we were able to get on to a better interest rate we would be able to pay off the arrears much more quickly. Can anyone offer any advice on how to get Yorkshire to agree to put us on a more competitive interest rate so that we can get out of this mess?  We are completely trapped.  Considering selling up and renting, currently feel like there are few other options.

Thrugelmir

Can you afford to clear the existing arrears quicker.  As you mention some years have passed. 

nicnola

No, our monthly payment is £1622, we're clearing £2100 pcm, this is the max we can afford presently

dimbo61

Maybe one for a mortgage broker who can check your current circumstances.
Age, Income, credit score/file, debts and search the market for a suitable lender.
Get help to shop around.
Your home may have gone up in value and you may have a much better LTV 

Thrugelmir

Have you considered selling up and downsizing? 

nicnola

Yes, that’s our next step if we can’t get on a better interest rate

MovingForwards

If you have an agreement with them and have been paying it consistently, have you asked if they will incorporate the arrears into the original mortgage and give you a fresh start?

I don't know if they do that, but I'm aware some other lenders do.

How much are your current arrears?

Even remortgaging may be difficult due to it and if you could you'd probably be looking at a sub-prime lender.

@ACG is a specialist adverse credit broker, he may know other options.

@K_S knows a lot of quirks with lenders and may have insight as to what can be done with your current lender.

nicnola

Hi, thanks for your reply, our arrears currently stand at £3900. We have asked them to incorporate the arrears and fix us in to a lower rate but they have refused point blank. They’re unwilling to budge at all until the arrears are paid in full. 

amnblog

You are causing the Lender are problem by not keeping to the agreed terms so they are not going to offer you a better rate. It sounds like at the current rate you are eight months from clearing the arrears and then you will get a new rate and your payments will drop significantly.

If you sell up you are unlikely to get a new mortgage short term, and if you do, it most likely won’t be at a lower cost.

Thrugelmir

amnblog said:

If you sell up you are unlikely to get a new mortgage short term, and if you do, it most likely won’t be at a lower cost.

Lenders have a duty of care to assist. Where the transaction is of benefit to the borrower. Downsizing is a way of addressing many issues concurrently. Though in this instance sounds as if the OP will shortly will be on track. 

Windofchange

As per the above. You’ll be all done by spring next year and can then crack on with life. Selling up you’ll probably be in your house on your current deal till the new year anyway, especially if you get into a chain. Seems pointless doing anything at present and you may as well sit tight, pay down the arrears and see where you are next year.