Re-mortgage - best thing to do?

[niklepic]

We are currently in arrears by around £1500 and have suspended possession order on the house. Our fixed rate has just ended and we're now paying 10.4% interest (2% more than was stated when we took out the mortgage but that's interest rates for you) . Redemption period ends in September.

We've managed to keep on top of the mortgage plus £100 per month for the arrears since november last year and could probably (just about) afford the repayments at this rate, and do our best to pay the arrears off before this November which would mean that we've been making all payments on time for 12 months.

Would this put us in a better position for getting a re-mortgage or do you think we're stuck with this really rubbish rate?

[gizmo111]

It would put you in a better position to remortgage once you had all the arrears paid off and had paid for the last 12 months on time.

Sub prime mortgage market has made it's criteria quite strict and a lot are looking for LTV of around 60%.

I would suggest that you wait until around September and start contacting brokers to see what is available to fit your circumstances at the time.

Who is your current lender?

[niklepic]

Current lender is Capstone (SPML). LTV we'd be looking for is around 80% including a secured loan we have - beginning to think we're a little trapped!

[gizmo111]

Originally Posted by niklepic

Current lender is Capstone (SPML). LTV we'd be looking for is around 80% including a secured loan we have - beginning to think we're a little trapped!

I think the best thing you can do is keep up the payments and see ho wthe mortgge market is later in the year. There are still some lending up to 85%, but with house prices falling they are hard to come by. Hopefully things will have stabilised and be clearer in a few months time.

Let us know how you get on.