Previous problems liable to cripple us?

c0c0nuts

Hi there,

I am coming to the end of my fixed rate in June-however my lender says it has no rates to offer me and I will likely have to revert to their standard variable rate which is wait for it....9.67%!!!

At the time myself and my partner applied for the mortgage we were self-employed, but having only been this way for 18 months we didn't have 3 years accounts to go to a high street lender.
At a loss we approached TML financial solutions who, for a hefty charge arranged a self-certification mortgage with Kensington. at 6.89% (taking circs into account).
Mid last year Kensington 'sold' our mortgage to Mortgage Express-the specialist lending arm of Bradford and Bingley.
I have contacted these guys who refused to discuss any rates with me as my deal wasn't due to expire yet-after much irate questioning on my part, the adviser told me he had no rates and Mortgage Express had taken existing customers re-rates off over 8 months ago and never replaced them. I was told to phone nearer the time when they ~MAY~ have some rates but the adviser wasn't hopeful.
Is this legal?
I thought all lenders had to offer new rates for existing customers?

Furthermore-as the business we had went into financial freefall we got out as fast as we could, but not without a default from Capital One-which was settled over a year ago.
To get back on our feet we took out a secured loan to clear all our mess up and have a charge on our property which leaves us appr 5k negative equity.
I have checked on Experian and we are both tarred with a 'poor' credit rating.
We have not missed one payment on either the mortgage or loan and have both been in full time employment since Jan 2006 when someone took over the business (they went bankrupt 18 mths later-pubs are not the trade to be in!)
Please please is there any hope for us?
Where do we go to for a remortgage now?
I wish we'd never had ambitions and tried to make a comfortable life for ourselves because all its done is cripple us financially-you get beaten for having the balls to make a change. To add to the concern after years of trying we were blessed with a baby boy (5 mths) so our financial security is paramount.
Any help greatly appreciated.

NeilQuinn

How are the mortgage & secured loan split and what's the approximate house value?

c0c0nuts

NeilQuinn wrote: »

How are the mortgage & secured loan split and what's the approximate house value?

Hi Neil-thanks for your reply, our outstanding mortgage is appr 81k secured loan appr 28500 and the value is approx 105k.
Cheers
Claire

NeilQuinn

There's a slight possibilty that you could move your main mortgage to a better rate with another lender & keep the secured loan where it is. The solicitors would need to arrange a deed of postponement. I've just arranged something like this for a client of mine because the mortgage lender's valuer downvalued the property & we couldn't raise enough to clear both.

There are a couple of Secured Loan companies who will allow the total borrowing to go to 125% of the house value. Both the main lender & second lender need to agree to it though.

Speak to your Secured Loan provider & ask them what your total lending limit is, in relation to the value of your house. After that, go and see a Whole of Market broker.

c0c0nuts

Thanks for that Neil,

Just to clarify as I missed out a bit of info, the mortgage and the secured loan are with 2 different companies, could we therefore just move the mortgage?
Would putting a notice of correction on both our credit files relating to the period where we had no income which resulted in my default go anyway to making lenders consider us more favourably?
My OH works in mortgage collections although hasn't a clue about any other aspects but theoretically is offered preferential staff rates on a remortgage-though I seriously doubt they would touch us with the proverbial bargepole.
Will definately take up your idea-as there's no way we can afford an extra £160 a month variable!!

poppy10_2

c0c0nuts wrote: »

Is this legal?

Yes.

c0c0nuts wrote: »

I thought all lenders had to offer new rates for existing customers?

No .

MuDvAyNeX

They might not offer you a new rate now if you have an ERC.

Do you know if you have an ERC on your account (Early Repayment Charge, also known as a Tie in)

If you do then it might cost more to come out of your deal and take out another than it will be to wait until your deal ends.