Adverse Credit Mortgages

[MrsSkint]

Hi guys

If anyone can point me in the right direction I'd be extremely grateful.

We have a 3 year fixed mortgage with GE Money because our credit rating is dire! However, we have spent the last 2 years trying our damnest to get ourselves clear of debt and although we aren't quite there yet, we have no outstanding debts or credit cards and we have paid the ENORMOUS mortgage repayments every month on time and have never missed any payments.

We will want to remortgage again in a few months, but because we have a CCJ and defaults from a few years back then these will show up when anyone does a credit search on us.

Any ideas on how to get a lower rate than 8.4% with a bad credit history?

Thanks x

[WendyB]

Re: Adverse Credit Mortgages

We had the same thing a few years ago, ended up with 12.4% with London Mortgages/Southern Pacific with a secured loan. Anyway, it only got better when we finally managed to get back in with a high street bank current account, which after a few months offered us a mortgage with them. Only thing I can say is keep plugging away at it, if the defaults CCJs are over 6 years old they will be off your file anyway, if not the closer you get to the six years and with a good repayment history you will get there in the end.

Also, it might be worth checking ifyour current rate is linked to the LIBOR rate, cos if it is it should come down when your fixed rate ends.

And well done for getting sorted this far!

[MrsSkint]

Re: Adverse Credit Mortgages

OMG 12.4%!! How did you cope? Please let me in on your secret - finding it hard to feed family every month without bloody payday loans.

CCJ is only about 4 year and it was paid off in the end so is showing 'satisfactory' on credit file. Lots of defaults though, but again, they're about 3 years old. Never ever defaulted on mortgage payments though - that's the one thing that gets paid every month no matter what.

Will check papers to see if it is linked to LIBOR 'cause I haven't got a clue (I'm a bit of a numpty where finances are concerned but have learnt a hell of a lot in a few months, since finding this website).

Thanks for your help Wendy. I'm hoping our new bank will give us a mortgage next year - we changed banks this year as we are trying to claim back charges from HSBC.

G xx

[TUTTSI]

Re: Adverse Credit Mortgages

Hi Mrs S,

It is a good idea to check whether you are linked to Libor and what your present lender should do when the rate drops as the libor has.

We are with linked to a libor rate and we are now paying the lowest we have ever had.

Like you we had a few CCJ's and could only get one of these very high interest rate deals. We were always told by the broker that we would be able to get back to a high street lender if we were not in arrears for two years and all payments on time.

You should also check that you do not have Early Redemption Penalty of say 3 months mortgage if you wanted to change to a different lender as this is often written in to these type of contracts.

It may be worth finding a broker or go into one of the high street banks to see what they can do for you. The only reason I also say a broker as quite often they have quota's for mortgages with High Street lenders.

If you have been charged for any charges on your mortgage these may also be capable of being returned to you but you will need all your statements and you should list them on a spreaddy. If after the pre-lim letter and a letter before action they do not want to return them then a complaint to the FOS. It may take several months but I understand that this works from others that have used this.

Tuttsi

[MrsSkint]

Re: Adverse Credit Mortgages

Thaniks Tuttsi

I'll check everything tonight. What sort of charges can be reclaimed?

Cheers!

G xx

[WendyB]

Re: Adverse Credit Mortgages

Have a read of the money saving tips on Beagles as well, please don't think I'm being patronising cos I'm not, but it's amazing the little things which you may never have thought of which when all added together can add up to quite a few savings over a month or so. And try not to take any payday loans if you can possibly help it as they are very very expensive and only put you further back.

[MrsSkint]

Re: Adverse Credit Mortgages

Please don't worry Wendy B, I don't think you are being patronising at all, and you're right - every little bit helps! I will definitely have a look on the money saving tips. I wish I could do without the payday loans but it just seems we're in debt every month and what with trying not to damage our credit rating any more than it is, we're not sure how to deal with it. Anyways, we're only buying for the kids this Christmas - stuff everyone else LOL

[WendyB]

Re: Adverse Credit Mortgages

How old are your kids?

With the payday loans (and tbh I've never had one so not exactly sure how they work) would it make a difference if you tried to last a couple of days longer each month before you had the loan? Would this make a difference to the interest/amount payable back? Sorry if this is a really dim suggestion but I've never had one...

Have you done an IE sheet? Might be worth starting your own thread in the VIP finances section/ then we can have a look and suggest savings etc. Apologies if you've already done this.

[MrsSkint]

Re: Adverse Credit Mortgages

The youngest are 11 and 13.

Thanks v much for your help. Haven't started a thread yet - I will take a look at the VIP finances section xx