I've got a "sub prime" mortgage

[davido140]

Mainly due to my self employed status when I got the mortgage (new company, only 1 years accounts)

Currently paying a whopping 7.7% on a fixed 3 year term with 16 months left to run.

I'm currently papping myself about the end of the fixed term, I'm guessing they will whack it up to 20% or something stupid so I will need to be remortgaging.

I'll have 4 years accounts showing healthy numbers by the time I need to remortgage but apparently its still tough to get a highstreet mortgage even with this.

will I be able to get a mortgage elsewhere? I've got a bit of adverse credit history too, several defaults but all showing as settled (paid them all off).

(btw I can probably cope with a 50% increase in my payments (1000pcm to 1500pcm) but wouldnt like it, any more than 2k a month and I'll be selling the cars, more than 2500 and i'm fked)

so how fked am I ?

Cheers

[V8mate]

Your loan provider must have told you what their standard rate is when you took the mortgage out

[scotal]

davido140 said:

Mainly due to my self employed status when I got the mortgage (new company, only 1 years accounts)

Currently paying a whopping 7.7% on a fixed 3 year term with 16 months left to run.

I'm currently papping myself about the end of the fixed term, I'm guessing they will whack it up to 20% or something stupid so I will need to be remortgaging.

I'll have 4 years accounts showing healthy numbers by the time I need to remortgage but apparently its still tough to get a highstreet mortgage even with this.

will I be able to get a mortgage elsewhere? I've got a bit of adverse credit history too, several defaults but all showing as settled (paid them all off).

(btw I can probably cope with a 50% increase in my payments (1000pcm to 1500pcm) but wouldnt like it, any more than 2k a month and I'll be selling the cars, more than 2500 and i'm fked)

so how fked am I ?

Cheers

You're not. Assuming your accounts stack up

The adverse will cause you more problems than the self employed status. Dpends how long ago the defualts were settled.

TBH, there is absolutely no pouint in you worrying about it now.

[Mike400]

Who knows?

Will mortgage providers stop lending completely within the next few months?

will they only lend to "sure bets"


Whats to say your current provider will def stick the rate through the roof?

[minimax]

not very in my opinion...

in 16 months there is likely to be a loosening of the constraints the market currently faces, even if the levels remain the same your odds of getting a new deal (all things remaining the same and equal) are high.

7.7% is not whopping at all, btw not in your situation

you'll have 4 years healthy accounts and presumably (depending when you bought, whether you pay capital off each month, etc etc) reasonable equity so your high st bank will almost certainly consider you


hmm, just read about the defaults, missed that bit

it will depend on when/how much for the defaults occurred

Edited by minimax on Wednesday 17th September 11:04

[Mike400]

Just out of interest, on remortgages what sort of rates are "average" at the minute for low risk borrowers?

[davido140]

Phew, thats a relief.. it popped into my head last night and I had a panic!

Mike400 said:

Whats to say your current provider will def stick the rate through the roof?

I thought it was "standard" for the sub primes to whack it up at the end of a fixed period, maybe thats just in the states, I "read it somewhere" about cleveland I think...

[Parrot of Doom]

I'm self employed with a self-cert mortgage. I had no problems whatsoever changing mortgage providers when last the issue arose.

[Mike400]

davido140 said:

Phew, thats a relief.. it popped into my head last night and I had a panic!

Mike400 said:

Whats to say your current provider will def stick the rate through the roof?

I thought it was "standard" for the sub primes to whack it up at the end of a fixed period, maybe thats just in the states, I "read it somewhere" about cleveland I think...

Like others have said that should have been highlighted at the start i.e. they have given you a mortgage at their standard rate of x%, but have given you a five year discount at y% so all that happens is you revert to the standard rate after the discount period unless you manage to change first.

If the standard rate is no worse than any remortgage deals you get offered, it might be less hassle just to stay put?

Also check you wont get hit with an early redemption fee from your current provider when you change?

[minimax]

davido140 said:

Phew, thats a relief.. it popped into my head last night and I had a panic!

Mike400 said:

Whats to say your current provider will def stick the rate through the roof?

I thought it was "standard" for the sub primes to whack it up at the end of a fixed period, maybe thats just in the states, I "read it somewhere" about cleveland I think...

they don't "whack it up" as such, they just put it up to whatever they said they were going to in the t's & c's of your offer

I have seen sub prime SVR's at 14%

[minimax]

Mike400 said:

davido140 said:

Phew, thats a relief.. it popped into my head last night and I had a panic!

Mike400 said:

Whats to say your current provider will def stick the rate through the roof?

I thought it was "standard" for the sub primes to whack it up at the end of a fixed period, maybe thats just in the states, I "read it somewhere" about cleveland I think...

Like others have said that should have been highlighted at the start i.e. they have given you a mortgage at their standard rate of x%, but have given you a five year discount at y% so all that happens is you revert to the standard rate after the discount period unless you manage to change first.

If the standard rate is no worse than any remortgage deals you get offered, it might be less hassle just to stay put?

Also check you wont get hit with an early redemption fee from your current provider when you change?

not unless he's got an overhanging early repayment charge which is unlikely, but possible

[minimax]

Mike400 said:

Just out of interest, on remortgages what sort of rates are "average" at the minute for low risk borrowers?

varies hugely on what you want/what is appropriate/how long for/credit risk/type of lender/yaddayaddayadda

ave 2 year fix is about 5.48% off the top of my head, but then you could get less than 5% or perhaps more than 8% if you tried!

[Don]

I stay with the same mortgage provider just so I don't have to produce the sodding accounts. I am paid very little PAYE.

Does your wife earn? If so can you use her salary?

When staying with the same lot I have found you can get a new deal easily and with no need to re-produce all the paperwork.

[minimax]

Don said:

I stay with the same mortgage provider just so I don't have to produce the sodding accounts. I am paid very little PAYE.

Does your wife earn? If so can you use her salary?

When staying with the same lot I have found you can get a new deal easily and with no need to re-produce all the paperwork.

you can use her in the application if (and this is not exhaustive) she is on the deeds, or not sometimes depends, she is young (or old ) enough, she is PAYE or has sufficient accounts, for the sufficient length of time.. etc etc

btw, not all lenders are that easy to deal with

[MaxAndRuby]

Who is your business account held with?

If you haven't missed a single payment in that time, have no bad debts, and your audited accounts show a healthy profit you are unlikely to have an issue.