help! need to remorgage but have poor credit history. Any suggestions?

trickievickie

we currently have a morgage with SPML (SOUTHERN PACIFIC MORGAGE LTD), since last august. we were with preffered morgages before but went with these after. myself and husband have had a poor credit history in the past but is all clear now, we have no credit cards loans etc (morgage only) and have never been in arrears with our morgage since we have had it (5 years ago) we have a financial advisor (broker) coming around next week someone of internet who reckons he can get our morgage down to £400 from £532, and can also get our other insurances down a well (life insurance, etc), and says he can put us on a 3 year credit recovery programme, he says we have to pay £290 up front and already has a lender for us. We wanted 85,000 and our house is worth £100,000.

Does any one know of any financial advisors that are reliable and trustworthy, or any morgage firms that deal with poor credit rating? i am unsure about this guy as he sounds alittle desperate? just a feeling i have.

i would be great full if any one could help.

thanx vicki xx

herbiesjp

There are a few things that you need to be careful of here:

1) Are there any penalties to leave SPML? GIve thema call and ask them verbally for a redemption figure and what the cost of any Early Repayment Charges may be.

2) You only changed last year from Preferred - did you not look at "normal" rates at that point in time?

3) Has the broker in question been given any information to work on i.e. any of your personal details - otheriwse how can he be sure of getting you a deal?

4) Has he looked into "normal" rates for you this time around, as having credit problmes 5 years ago will normally bring a lot of the market place back to you.

5) There are plenty of advisers that will ot charge £290 to arrange the mortgage for you - it sounds like this guy would like to charge you this fee, and put you on an adverse rate and pocket a higher procuration fee (commission) when he might not even need to put you on an adverse rate.


I am speculating here, as you have not posted any details, but these things jump out at me at first glance

trickievickie

thanx alot herbies much appreiciated vicki x