Mortgage Prisoner

kevinb3

has anybody had any luck with the list of mortgage brokers listed on here who say they can help mortgage prisoner as the ones I've spoken too carnt help 

[Deleted User]

Have you had your letter saying you are a mortgage prisoner? 

Edi81

kevinb3 said:

has anybody had any luck with the list of mortgage brokers listed on here who say they can help mortgage prisoner as the ones I've spoken too carnt help 

What list are you referring to? The MSE recommended brokers which basically only want easy cases?

who is your current mortgage with?

MWT

... and do you meet the conditions for the modified affordability test ?

SmilingHaggler

I am looking for some help please. If one had taken out a mortgage in September 2007, on a fixed rate for 5 years, does that make one a mortgage prisoner?Obviously the crash happened just after this time and one was then in negativity equity as prices dropped, but also as one had agreed to a 5 year fix does that make me ineligible to apply as a mortgage prisoner?

TIA

steampowered

People will be able to offer better help if you provide some more information. It would be good to know:
- What your home is worth (roughly)?
- What is outstanding on your mortgage (roughly)?
- What interest rate you are paying on the mortgage?

If you have been paying the mortgage since 2007, don't you have any equity built up? 

MWT

SmilingHaggler said:

I am looking for some help please. If one had taken out a mortgage in September 2007, on a fixed rate for 5 years, does that make one a mortgage prisoner?Obviously the crash happened just after this time and one was then in negativity equity as prices dropped, but also as one had agreed to a 5 year fix does that make me ineligible to apply as a mortgage prisoner?

Which lender were you with initially, and which lender has your mortgage now?

Generally if you were considered to be a 'prisoner' you would have received a letter from your current lender confirming that by now...

SmilingHaggler

steampowered said:

People will be able to offer better help if you provide some more information. It would be good to know:
- What your home is worth (roughly)?
- What is outstanding on your mortgage (roughly)?
- What interest rate you are paying on the mortgage?

If you have been paying the mortgage since 2007, don't you have any equity built up? 

MWT said:

Which lender were you with initially, and which lender has your mortgage now?

Generally if you were considered to be a 'prisoner' you would have received a letter from your current lender confirming that by now...

Thanks for your replies. 

The mortgage was with Northern Rock and then moved to Northern Rock Asset management when the crisis hit at the end of 2007, it was 100% mortgage and the market had peaked. 6 weeks later the markets crashed and we were stuck at 6.34% for 5 years as it was a fixed rate. After this the mortgage rate dropped to around 4%. The property has now been sold as of this year. No, no equity was built up.

MWT

SmilingHaggler said:

The property has now been sold as of this year. No, no equity was built up.

If the house has been sold, presumably the mortgage has now been redeemed, so what were you hoping to 'apply as a mortgage prisoner' for?

amnblog

To get any specific help as a mortgage prisoner.

You must be with a 'closed book' Lender  - these means they are offering no new borrowing and no new rates
You must have had a letter from your current lender confirming you are a mortgage prisoner
The property must be your main residence and you are not borrowing extra
The loan to value cannot exceed 75%
Your new monthly payment cannot be more than 5% higher than your current payment

Meeting all of the above requirements does not mean it is a done deal.
You will need to meet credit criteria (score) with the new lender and there will be an affordability check (if though it may be more generous that usual)

If your mortgage is on a shared ownership or shared equity scheme that is a non starter

If any of the mortgage is on an interest only basis, that is a further tricky complication that may prove a problem

In short - there is some relaxation of normal underwriting but it is fairly limited.

Billyboi

Hi I’m after some advice about getting a re-mortgage. Took this product out in Sept 2006 with Southern Pacific when that went defunct it was taken over by Acenden which is the non borrowing subsidiary of Kensington. I’ve never received a letter from the lender about been a mortgage prisoner though obviously I realise now I’ve been overpaying for decades. Having an interest only mortgage, not a penny has ever been paid off, in fact increased by thousands by their overcharging and fees while it was a Southern Pacific mortgage. 

Since the interest rate hikes my monthly payments have TRIPLED and I can no longer afford to meet payment each month, also I am reliant on disability benefits owing to a serious illness. I have no insurances etc, though through benefits I get a reasonable amount, but no mortgage broker will touch me even though before the crisis, I was paying my mortgage while receiving disability. I’ve explored the governments Mortgage Relief fund, though while paying such a extortionate amount in interest the little equity the property does have would soon be taken by the government since it is now a requirement to pay back the interest they have set. Been between a rock and a hard place, Does anyone know of a broker who can help home owners remortgage whom are solely in receipt of benefits because of disability? 

A further note, as my current mortgage is essentially underwritten by Kensington and I’ve been paying since 2006, why their subsidiary Acenden who administers my mortgage cannot convert my mortgage product to something more inline with Kensington’s current rate which would halve my monthly payment overnight; seems extremely unfair and corrupt.

I’ve approached several mortgage brokers who state Kensington won’t touch me because of my current situation even though I’m already paying them!
Even though the FSA or whomever after doing their report on mortgage prisoners, stated lenders are  supposedly obligated to help these customers; I’ve notified Acenden of my current situation and no new product solution was suggested, only further ways of how to get into further debt with them. I’ve also approached my local citizens advice and no joy, so any helpful advice on how to get out of this extortionate situation without having to sell my home would be greatly appreciated. 

Kind regards
Billyboi