need some help and fast

stoveman

hey everyone,

in need of some help as im getting very worried now.

basically i was a silly boy when i was younger and managed to get a few defaults against my file.

i managed to get a first time mortgage for £112,000 on a £115,000 house and because i was in a crappy job we went interest only for 2 years to keep the payments comfortable and give us some payment history on a mortgage. (the rate we had was 2 year fixed @ 6.29%= £582 per month interest only.

this fixed rate is due to expire in april and it will revert to 2.69% above base rate which is something stupid like 7.89% and obviously we need to start paying capitol off now so this would mean £870 per month interest and capital. to give you an idea i earn around £900-950 a month and wife takes home around £1,100.

the mortgage is with first national and i rang to ask them if they could improve on the rate but they said because they only use the original valuation figure not a current valuation of the house i would need to borrow 97% of mortgage and they doesnt qualify me for a better rate with them.

so basically im struggling to find anyone who will remortgage us at a better rate for a high enough LTV

anyone recommend any companies or have been in same boat? £870 is just too much to pay and dont think we can do it.

cheers.

Commonsensesearcher

stoveman wrote: »

hey everyone,

in need of some help as im getting very worried now.

basically i was a silly boy when i was younger and managed to get a few defaults against my file.

i managed to get a first time mortgage for £112,000 on a £115,000 house and because i was in a crappy job we went interest only for 2 years to keep the payments comfortable and give us some payment history on a mortgage. (the rate we had was 2 year fixed @ 6.29%= £582 per month interest only.

this fixed rate is due to expire in april and it will revert to 2.69% above base rate which is something stupid like 7.89% and obviously we need to start paying capitol off now so this would mean £870 per month interest and capital. to give you an idea i earn around £900-950 a month and wife takes home around £1,100.

the mortgage is with first national and i rang to ask them if they could improve on the rate but they said because they only use the original valuation figure not a current valuation of the house i would need to borrow 97% of mortgage and they doesnt qualify me for a better rate with them.

so basically im struggling to find anyone who will remortgage us at a better rate for a high enough LTV

anyone recommend any companies or have been in same boat? £870 is just too much to pay and dont think we can do it.

cheers.

What do you/local estate agents think the house is worth now??? This will set the LTV with other lenders who should value the house now rather than taking the price you paid for it...

mpsavuk

If you are taking home 2k per month between you surely you can afford £870 pm as a worst case scenario?

stoveman

Commonsensesearcher wrote: »

What do you/local estate agents think the house is worth now??? This will set the LTV with other lenders who should value the house now rather than taking the price you paid for it...

sounds stupid but i cant seem to get anyone out to tell me, they never get back to me lol

the house next door which is very similar went on the market for £142,000 and sold for £139,000 so ive been guessing its worth about £130,000

but first national refuse to re value it and use the new value, shame cos if they could have shaved a bit off it would have saved a lot of effort and money.

stoveman

mpsavuk wrote: »

If you are taking home 2k per month between you surely you can afford £870 pm as a worst case scenario?

yeh i guess we could but that is a lot of money, be quite tight cos i have to pay out £100 a month on loan commitments aswell so thats £1,000 before you start.

ixwood

Sorry to be the bearer of bad news, but you may really struggle to get anything else with high LTV, not great income multiples and previous credit problems.

Not sure what to advise really. Probably see a broker and try and get something sorted ASAP. It's only going to get worse with mortages dissapearing or tightening their lending criteria by the day.

Anything you do get, will probably make you pay over the odds. Maybe selling up and then improving your finances ready to buy again in a couple of years might be the best option? Try really hard this week to secure another mortgage 1st, and then you'll know better where you are.

ixwood

112/130 = 86%, which isn't too bad. Start remortaging ASAP. You need a broker who will know better what deals you can get.

Commonsensesearcher

ixwood wrote: »

112/130 = 86%, which isn't too bad. Start remortaging ASAP. You need a broker who will know better what deals you can get.

Beat me to it there! ANd I'd be tempted to get a few EA's around for realistic valuations...

Although saying realistic and EA in the same sentence might have been a little overoptimistic!!!

herbiesjp

This link might help for house prices:
http://www.nethouseprices.com/index.php?con=sold_prices

Have you got up to date copies of your credit files? As the information on these will also play a big part on what deals/lenders are availabel to you.

Get copies of these, and then discuss them with a professional in order to see what options you have available

stoveman

cheers for the replys guys.

ive got the guys who arranged the mortgage originally looking into it but they are struggling to find something that comes up trumps with the LTV. i think they are trying to get deals that offer free legal fees etc etc and a better rate.

Suppose ill just have to wait and see what he comes up with.

Cant seem to get the EA's out they dont seem interested. wierd i know

kingkano

stoveman wrote: »

cheers for the replys guys.

ive got the guys who arranged the mortgage originally looking into it but they are struggling to find something that comes up trumps with the LTV. i think they are trying to get deals that offer free legal fees etc etc and a better rate.

Suppose ill just have to wait and see what he comes up with.

Cant seem to get the EA's out they dont seem interested. wierd i know

Depends how your asking them.... are you saying can you come value my house for mortgage purposes? In which case its work for them for free. You need to say I want to sell the place can you come out and give me an idea how much you'd charge. They will be out in a shot!