Hi,

Does anyone know anything about C&G and their processes? My partner is currently the mortgage holder for our joint tennants-in-common property. (I have 65% ownership, but no mortgage). I'm not on the mortgage as I had recently become self-employed when we bought the house, and we weren't borrowing too much for one salary. It seemed the easier option.

The mortgage started in December 2005, on a fixed year deal for 2 years. In August/September 2006 no mortgage payments were made. Times were hard and we paid for a funeral using money which should have paid our bills - silly, but it was what we did at the time, and we weren't thinking rationally. We contacted Lloyds (who deal with C&G missed payments etc.) we arranged a payment schedule of an extra £20 per month. After 6 months they wrote & said we could cancel it and add to the actual mortgae instead of being arrears. Great, we said, and thats what we did. Since Sept. no payments have been missed/late.

My question is, how likely are we to be able to remortgage on to a better deal? We are currently on around 7% I think, which changes with rate changes. We were on 4.69% fixed for 2 years. Does anyone know if we should sit tight for a few years until the arrears are very old, or should we look to change products asap? We are happy to stay with C&G, and don't want the hassle of applying to a new lender - just a better deal with our existing lender. Any ideas anyone?

Thanks, sarah

Hi Sarah,

If the arrears are over 12 months old (and your post seems to indicate they are) then most lenders will ignore them. 7% is quite a high rate to be paying if you have had generally good credit then you should be able to remortgage onto a better rate. Have you approached C&G? Might be worth a phone call to see what they say about the rate they can move you onto. If not call a broker and get them to give you some advice where to go to (remember advice should be free!).

If you let me know what the property is worth and the aprox mortgage amount and term I'll give you some ideas about which lenders will be worth a call!

Regards,

Dan

Hi Dan,

Thanks for the response. Yes I thought 7% was high, but am very busy and haven't really checked around much. Also, was worried that old arrears might affect ability to obtain new deal.

Our house is worth approx. £125K (conservative estimate going on recent sales in the street) and the mortgage is at approx £83K including the arrears which were added/charges etc. We are paying £570 per month on the 7% standard rate from C&G. We don't want too much hassle moving, that being said I do have a good IFA I can ask - I just don't want to bother him if its not worthwhile due to previous arrears.

In general my partners credit is v. good, we have a faultless personal loan in joint names. He earns around £27k per year with o/time included. I on the other hand am very bad at paying my credit card bills on time, so have a rubbish credit history. I also used to pay very badly on store cards although I don't have them any more. I am paying my cc off very slowly now - will that affect my partners credit for a re-mortgage? He doesn't have any credit cards or other loans. I'm happy not to be on the mortgage - but we do need a mortgage that will allow for my bigger share in the house, ie 65% (I paid £30k deposit when we bought it) for which we have a legally binding tennants in common agreement.

Thanks for your help so far!

Sarah

Hi Sarah,

I have had a quick look around and the lender I would suggest having a look at would be: Abbey (very good at ignoring adverse credit history if the loan to value is good) rates range from 5.71% upwards.

Although having looked at C&G have you approached them to see if they would consider putting you onto another fixed rate? Would be easiest and would save you alot of hassle.

I would definatly say that it is worth you looking around or asking your IFA as I honestly think that if C&G won't accept you then Abbey would do and it should bring your monthly payments down as the worst rate that they offer is 6.99%!! I think the 5.99% fixed for 3 years would be the best one for you but speak to your IFA and see what he says.

Regards,

Dan

Dan, been busy for a fwe adys. Thanks for your response. You've been helpful, and my IFA friend is going to contact C&G who he thinks will offer us a better rate on a fixed term deal, which is exactly what I want so thanks.