morgtage help

leedonna

hi im a first timer to this site, so sorry for any mistakes. Can any one offer some info, my problem is i have a v bad credit rating due to stupidity of youth etc and now have a very high morg £670 per mths and im considering one of those adds in the papers to sell house and live there paying rent, as the morg payments are cripling us and leaving us skint every month, can any one give me some info on if they work etc or any way of getting a better morg deal thanks

Gorgeous_George

Welcome.

I think the general consensus is that they are not good. These companies need to make a profit and that profit can only come from their customers.

I'd either sell up and rent or try to earn a little more (extra hours/promotion) to help pay the mortgage.

GG

ps. You can amend the thread title (to correct the typing error if you wish) by selecting 'edit' and then 'Go advanced'.

silvercar

what is the property value and what is your mortgage? These companies will give you 80-85% of the value maximum. You would be far better selling up and finding a rental yourself.

wardlaw

Hi Leedona


If you are struggling financially, there is nothing wrong in switching from capital and interest to interest only ,, in the short term. as it a means by which you could manage your mortgage more easily,reduce the financial worry which you can do without , and ultimately keep a roof over your head

This way you could dispense with the scheme you are talking about but I would not advacate iot for the reasons given by the previos thread

You dont have to realise that in an interest only mortgage you dont repay any capital However, you can switch back in the future.

You could however, if you still find it a struggle ,to partly switch your mortgage to capital and interest and interest only. The actual percentage split, can be any amount depending what you are comfortable with

In addition, try and get your present lender to give you a better rate of interest, or consider re-mortgaging to another lender via an independent moprtgage broker who charges no fees, assuming you do not have any redemption penalties, that is

With regard to swiching to Interest Only, your lender will not penalise you as such, but they will probably charge an Administration charge, which you can find within their "Tariff" brochure You might be able to find it on line via their web site


I hope this is of assistance

John Wardlaw
Independent Mortgage Broker
Business Development Manager

PasturesNew

If a company buys your house, their mortgage would still be the same as yours, if not higher.

At first they would offer you a 6-month AST and thereby effectively be subsidising you, but come the end of that 6-months they are most likely to want you out so they can start to get a higher rent from somebody else to cover their mortgage.

They are a business. Not a charity.

Your best bet is to do what the others suggest here, sell or go interest only on the mortgage.