Author Topic: Mortgage  (Read 1921 times)

vuldalm

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Mortgage
« on: Oct 05, 2010, 04:53:19 PM »
I am presently on a interest only payment mortgage with Redstone.


At best the value of the property would just about cover the outstanding balance of the mortgage - at worst we have negative equity.  There is just over twenty years left on the term of the mortgage and less than one month of arrears on the mortgage which will be cleared within the next five months.


Ideally I want to move the mortgage away from Redstone, as you can imagine considering their reputation, to a conventional high street lender onto a fixed rate standard repayment mortgage.  Having a young family fixing outgoings for the next few years is important.


Away from the mortgage we have a debt management plan in place.


I'd appreciate any advice on the situation which while not critical is a concern particularly as interest rates are only going to go up!

AshleyPark

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Re: Mortgage
« Reply #1 on: Oct 05, 2010, 05:35:44 PM »
Hi Vuldalm,
 
Unfortunatley if you are in a debt management plan at present you will be struggling to find a company who would re-mortgage you at a better rate than what you are currently on.  Some companies will not accept applciations form those who are in debt management and those who will would require you to clear the existing debts as part of the re-mortgage. 
 
Wish i could offer more postive feedback! >:(
 
Lee
Ashley Park Debt Solutions Ltd
 http://www.ashleypa

Steven Jackson

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Re: Mortgage
« Reply #2 on: Oct 08, 2010, 09:15:10 AM »
Hello Vuldalm
 
Unfortunately I have to agree with Lee on this. Given you are in a debt management plan, you are making reduced payments to your unsecured debts. It is therefore extremely likely that you have already got default notices against you which will have been registered on your credit file. If you want to get a copy of your credit file to check this out, you can find out how to do this here: http://www.beatmydebt.com/self-help-manuals/improving-your-credit-score/getting-a-copy-of-your-credit-file.htm
 
Given you have defualt notices, your credit rating poor will be poor and most main stream mortgage lenders will not want to deal with you. You will have to consider sub-prime lenders and after doing some research will probably find that you are best staying where you are for the time being.   
 
My best advice is to do all you can to get your unsecured debts paid off or settled. Then you can concentrate on repairing your credit rating and then turn your attention to improving your mortgage terms.
Debt Expert
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pete88

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Re: Mortgage
« Reply #3 on: Oct 18, 2010, 11:38:01 AM »
Hi, Vuldam
 
i was in the same situation nd i failed to get a re mortgage untill i brought my debt under a certain amount so i would suggest speaking with various motgage companies before making any decision as some will be more willing than others.

Steven Jackson

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Re: Mortgage
« Reply #4 on: Oct 20, 2010, 03:19:56 PM »
I am interested to hear that you were in a debt management plan and still managed to re-mortgage Pete88. As far as I am aware, most mortgage companies are really tightening up on their lending creiteria and anyone with a debt management plan and associated default notices is having a really tough time remortgaging at all let alone getting a better rate than they are already on.
 
Who did you remortgage with. Were you already on a debt management plan or did you manage to reduce your debt without having to go down the DMP route? I am sure this would be very useful info for others in a similar position.
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James Falla

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Re: Mortgage
« Reply #5 on: Oct 21, 2010, 04:35:20 PM »
I agree with Steve on this one. I think it is extremely difficult for anyone on a debt management plan to get a mortgage in the current economic conditions. Vuldalm also mentioned that they have a month's mortgage arrears. Generally speaking, mortgage lenders will want to see three to six clear months of payments after arrears have been paid before they will consider taking a new client on. As such, I think it is highly unlikely that Vuldalm will be able to successfully remortgage any time soon. For now, the focus should be on trying to pay off the mortgage arrears and make some inroads into the unsecured debt.
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madison85

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Re: Mortgage
« Reply #6 on: Oct 27, 2010, 08:35:47 PM »
Hi, Vuldam
 
i was in the same situation nd i failed to get a re mortgage untill i brought my debt under a certain amount so i would suggest speaking with various motgage companies before making any decision as some will be more willing than others.
I strongly agree with pete88. Do some research first before taking next steps.

James Falla

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Re: Mortgage
« Reply #7 on: Oct 28, 2010, 03:17:44 PM »
It is good advice that you are giving madison85. Whether you are considering a debt management solution, mortgage or any other financial service product, it is always a good idea to research the available options thoroughly on the internet. Speak to someone who has been recommended to you if you can, but if not speak to 2-3 different providers so you get a balanced view.
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Steven Jackson

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Re: Mortgage
« Reply #8 on: Oct 28, 2010, 03:24:48 PM »
I agree. In terms of debt management, there is lots of great information available on the web. However no two debt problems are ever quite the same so it is always sensible to discuss your individual problem with an expert. By talking to 2-3 different people you can compare the answers they give and then go with the firm you feel most comfortable with. 
Debt Expert
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