Bad credit and mortgage brokers

Scorpio81

I have sent you a pm

Bexter

Right, after my original post I eventually found out that there had been an input error at Future Mortgages and that's why I had been rejected...

So am pleased to say I have now been approved for a 90% LTV mortgage through Future - and with a £250 broker fee, not the £4k one lot wanted to charge me (I might add they came back with an offer to drop it to £200 but that's a whole other story..)

So here's my next question - I know no one can say anything about the current market with certainty, but I'd be interested in opinions.

The Future fixed rate is 7.85% for 2 years. The variable is about the same. No tie in on the variable and no extended on the fixed. I've now been discharged from my Trust Deed and am busy getting my credit files cleaned up so that all the defaults should drop off in June 2009 as it will then have been 6 years from signing. I am rebuilding clean credit with a credit card and a 12 month loan which I am halfway through, plus in same job 5 years, on electoral roll, not applying for other credit etc etc

SO - do I tie in at the fixed rate or do take a gamble and go with the variable for 6-12 months and once I have a history of clean mortgage payments and settled credit accounts on my file, try and switch to a better rate, rather than being tied in for 2 years? Or are rates going to keep rising in the next year so that 7.85% will seem like a good deal?

Conrad

If I knew that I'd being running the BOE - and even he does'nt have really any idea where we will be in 1 years time, there are too many variables. On the one hand lending is falling apart, on the other factory gate price inflation rose the highest for 13 years!

My bet is BOE rates will fall, but that does'nt necessarily mean lenders will drop rates, indeed rates have been rising despite BOE dropping.

On balance if you want to sleep at night............ I'd probably fix if it were me, but thats not to say you wont utterly regret it.

Sorry, not a lot of help

minimike2

How much do you think base rate will drop Conrad?

Or lets put it this way..

How long do you think it will take the BoE to realise that decreases to the base rate will not fix this mess and just cause inflation to rocket?

Or do you think they may have already reliased that and in fact hold the interest rate, which really is what they should do and work out a different way of fixing things.

beecher

minimike2 wrote: »

Or do you think they may have already reliased that and in fact hold the interest rate, which really is what they should do and work out a different way of fixing things.

That's what I think will happen because if they drop them, they'll just have to increase them again later in the year when inflation gets out of control.

I don't know if there is a way to fix this at all - have the feeling Labour have just given up and will leave it all to the Tories.

minimike2

Hopefully they wont get back in again next time round.

Then they will turn round in three years time and blame the state of the country on the new government....even though they created it.....just like last time....lol

Dan_Collins_2

Bexter wrote: »

Right, after my original post I eventually found out that there had been an input error at Future Mortgages and that's why I had been rejected...

So am pleased to say I have now been approved for a 90% LTV mortgage through Future - and with a £250 broker fee, not the £4k one lot wanted to charge me (I might add they came back with an offer to drop it to £200 but that's a whole other story..)

So here's my next question - I know no one can say anything about the current market with certainty, but I'd be interested in opinions.

The Future fixed rate is 7.85% for 2 years. The variable is about the same. No tie in on the variable and no extended on the fixed. I've now been discharged from my Trust Deed and am busy getting my credit files cleaned up so that all the defaults should drop off in June 2009 as it will then have been 6 years from signing. I am rebuilding clean credit with a credit card and a 12 month loan which I am halfway through, plus in same job 5 years, on electoral roll, not applying for other credit etc etc

SO - do I tie in at the fixed rate or do take a gamble and go with the variable for 6-12 months and once I have a history of clean mortgage payments and settled credit accounts on my file, try and switch to a better rate, rather than being tied in for 2 years? Or are rates going to keep rising in the next year so that 7.85% will seem like a good deal?

Have you asked your mortgage broker?

Bexter

Certainly have - she is suggesting variable might be a good idea so we can get out in 6-12 months and onto a better deal. My worry is obviously that Future could keep putting their variable rate up and up, so a fix would at least give us peace of mind against that for a couple of years..