Ive missed a mortgage payment today

poppy10_2

Good news is LIBOR is coming down significantly.

drrobert

poppy10 wrote: »

Good news is LIBOR is coming down significantly.

I'm afraid LIBOR is rising at the moment, so there won't be any relief for mortgage rates from that perspective (although the Bank of England might lower it's interest rates, which could help).

The reason for the rising LIBOR is that the European Central Bank is likely to stop issuing loans. See this Bloomberg article (1st Feb 2008):

Derivatives Signal Borrowing Costs to Rise as ECB Halts Loans
The spread, or difference, in the three-month dollar London interbank offered rate above the overnight index swap rate, both traded forward about one month, to early March, widened to about 52 basis points after the ECB announcement, from about 41 basis points at the open of trading, according to Credit Suisse data. The spread was about 30 basis points last week.

chappers

drrobert wrote: »

I'm afraid LIBOR is rising at the moment, so there won't be any relief for mortgage rates from that perspective (although the Bank of England might lower it's interest rates, which could help).

Not sure where you got this information from, in the last 3 months 1/11/07- 1/2/08 the 3 month sterling LIBOR has fallen from 6.28% to 5.53% admittedly there was alittle blip a week ago , but the rates hhave started to fall agin.Also the longer 6 and 12 month LIBORS are falling which indicates further interest rate cuts .

Gorgeous_George

The OP should have phoned the bank and asked for an overdraft. I don't go overdrawn but always set up an overdraft facility for emergencies.

Failing that, a short term loan from parents or friends would have been worth pursuing.

GG

michellefromessex

Gorgeous_George wrote: »

The OP should have phoned the bank and asked for an overdraft. I don't go overdrawn but always set up an overdraft facility for emergencies.

Failing that, a short term loan from parents or friends would have been worth pursuing.

GG

Natwest wont give me an overdraft as I recently switched to the Advantage Gold account (as a valued customer apparently) which means an overdraft wont be issued for first 6 months, and now with being charged for going overdrawn unauthorised I will have to wait another 6 months.

And not all family members are in a position to lend £900, why do people keep suggesting borrowing from family or friends, most people I know are struggling at the moment just to keep afloat let alone have a grand sitting in the bank to hand out.

HelpWhereIcan

I would suggest that the best course of action now is to carry out a bit of damage limitation.

Depending on any equity you may have and any ties there may be on your exisiting mortgage (amongst other things) you really should be looking to speak with a broker to see if it would be possible to remortgage and reduce your interest rate. Very few people with equity (even those with an adverse credit history) should have to pay a lender's standard variable rate.

However, any lender you are looking to remortgage to will take a dim view of recent arrears so this should be addressed as soon as possible.

Which lender are you with now? At 9.25% and based on what you have posted, I guess SPML.

Some lenders will not report arrears or missed payments as long as you make at least half on the monthly payment due. So the £150 you had before may not have been reported as arrears but by the arrears balance exceeding 50% of the monthly payment now arrears will be reported. If you can make any payments at all, ideally over 50% of the payment make it asap - eg when the car etc has been sold, by borrowing from an understanding relative, putting off paying a bill for a couple of weeks etc. This could prevent arrears being reported to credit reference agancies, improving your prospects for a remortgage now.

What is the actual due date of your mortgage payment? This is sometimes different to your dd date. eg Your direct debit may come out on 31/01, but the interest to 16/2 may be covered. Try to think back to the first payment you made to your current lender. Did it include an element of prepayment - eg paying for 8 weeks when you have had the mortgage for 6?

When some lenders look at a remortgage application they will ignore a missed payment as long as the payment was made in full in the same month it was due.

eg dd date of 31/1, due date of 14/2, dd bounces but payment caught up weekly by end of Feb with dd going out as normal at the end of feb - no missed payment as payment made in full in the month due.

due date 1/1, dd date 31/1, dd bounces but paid in cash on 1/2 - missed payment as not made in the month it falls due.

Talk to your lender now. make whatever payment you can asap and aim to catch it up asap (if need be at the expense of other things).

Get some advice from a whole of market broker.

Ideally use personal reccomendations to pick one or even something like the Yellow pages etc. No harm in speaking to more than one and always make sure to ask the questions Martin suggests in http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1101649966,86816#step2.

Do not let anyone take the Mick by taking advantage of your position and charging a fee in the 000s just cos you need help. Pay a fee if you are happy with the service and advice you receive, but bear in mind that many will take on your case without charging one at all. Not all fee free advisers will have the experience needed to deal with your case, but neither will all fee charging advisers.

Be careful of anyone who approaches you unsolicited and use the services of a face to face adviser unless you are confident enough to deal with someone via post & email.

Hope this helps

HelpWhereIcan

As a post script, have you thought of whether you need to make arrangements on any unsecured commitments through Consumer Credit Counselling Service or Payplan?

If things are very serious, it may even pay to consider an IVA.

Your mortgage and keeping a roof over your head have to be the priority at the moment. Why put the house at any more risk than it needs to be - especially in the current climate?

Not saying that this applies to you as by coming on here and posting you have shown that you are not the type to bury your head in the sand. Just make sure nothing changes that.

If this is a recurring issue or early signs of problems to come you are better to address them now when you still have some control and choice over what happens next.

Poppycat

I think its sometime good to have a overdraft for short term only to help you in times of cash flow, you can pay next to nowt in interest if its only for a few days or week for small amounts of money.

I think the Op should also when they get there problems sorted to put some money a side for the van.

Gorgeous_George wrote: »

The OP should have phoned the bank and asked for an overdraft. I don't go overdrawn but always set up an overdraft facility for emergencies.

Failing that, a short term loan from parents or friends would have been worth pursuing.

GG

Lomion

michellefromessex wrote:

Natwest wont give me an overdraft as I recently switched to the Advantage Gold account (as a valued customer apparently) which means an overdraft wont be issued for first 6 months, and now with being charged for going overdrawn unauthorised I will have to wait another 6 months.

You're paying Crap West £12/month for an account without an overdraft and all they are giving you is 0.1% credit interest and a load of crappy 'freebies' that you can get cheaper elsewhere using this site?

They must really love you

Swap Banks....now!! Alliance and Leicester, Abbey or First Direct would all love to have your business and they're all offering much better deals than what you have at the moment. (click on the tab at the top of this webpage that says Banking and read through Martin's article)

Start using this website and you might find yourself with enough spare cash to start making overpayments on your mortgage and not have to worry about being caught short if you take 2 days off work

Bf109

You cannot afford your house.

Sell it.

Its as simple as that.