Remortgage Due & Bad Credit History

jojo2365

Hi
I need some advice if anyone can help. Im coming to the end of my 3year fixed rate deal with my current lender and was wondering because I have such a bad credit rating is it worth switching lenders or staying with my current lender.

I have a mortage of £116000 and currently pay £645 a month with my dad as my guartentor on my mortgage. Do you think any other mortgage lenders would touch me. I have never defaulted on my mortage only been late once with a payment in the past 3 years.

Thank You

UK007BullDog

Can you give more details why you think your credit rating is poor? And please tell us your gross income and also what your property is worth now and the type of property you have.

Then some of the other brokers can tell you if there are lenders out there.

You might want to ask your current lender for a new "deal". Going on the lenders SVR is not good as it is quite high and this goes for all lenders.

jojo2365

HI

I have a bad credit history because i have recently gone onto a debt management programme as I could not afford my payments on all my debts. Therefore I have missed payments against my name and defaults. So my credit history is quite bad.

My gross income is £25000 a year and my dad is my guarentor but he also has a mortgage of his own with my mam. I have a two bedroom terraced house, i bought for £122500 got a £116000 mortgage so 95%. Now I think the house is worth about £134000, thats going from other houses in my street.

Hope this helps a little more, Thanks for your help

UK007BullDog

What lender are you with?

In this case ask your current lender for a new deal.
If they will not offer you a new deal what is their current SVR?

You might have to look if you can find a lender who will take you on which would be sub prime and at 95% - 80% is very difficult now if not impossible. Maybe their rate is better than your lenders current SVR so then a switch may be profitable.

I think you have to visit a true whole of market broker to get a good overview of the market.

MortgageMamma

agreed bulldog

The adverse mortgage market is very complex and just lately there have been a lot of changes. unless you are credit checked by a broker there really is no way of telling what sort of product you would get or if you are better staying with existing lender. who is your existing lender by the way?

jojo2365

HI

My current deal is with the Bank of Ireland. Will I be best going to a mortgage advisor and getting them to do a search for me.

Thanks for your advice

MortgageMamma

yes, go see a whole of market mortgage adviser. if you go to a bank they will just advise you on their own products, you really need someone to make a full market comparison for you

you don't actually have to see the adviser in person, some advisers work over the phone and the advise can be just as good