Hello, my husband and I bought our first house together two years ago. It's now about time that we come off our fixed rate mortgage with our mortgage company. The mortgage is already expensive but because at the time we could only get high interest mortgages. We have always paid our mortgage on time and our circumstaces haven't changed but because of a default on my husbands file from 2005 ( that is the wrong date)- it should be 2001/2002 we can't get any credit. Don't know how to get default removed or who to contact.

However with our fixed rate mortgage coming to an end it goes to the mortgage companies SVR which would mean even higher monthly repayments. Any advice would be greatly appreciated on what options there are for us. Thanks

I think at this moment SVR is much lower then any fixed rate. For example when I took my mortgage with C&G 2 years ago my fixed rate was 5.89%. Now 2 year fixed term finished and my mortgage automaticly went to SVR which is just 2.5% at the moment (it was over 8% 2 years ago)). My monthly mortgage payment dropped from £750 to just £540!!! So there is no point for me to remortgage at the moment as I will never get 2.5% on the fixed term mortgage. Ask your lender what your current SVR is? I really think it is much lower than your Fixed rate.

Shell

I think your point was that you already know the SVR and this is high due to your husbands credit record.

In the circumstances, you should contact a local Independent Mortgage Broker and see if you can obtain a better rate. In regard to the inaccurate credit record issues, you will need to gauge how long this matter will take to resolve, when deciding whether to go for another fixed rate or a cheaper SVR elsewhere. Be careful to check any fees which tie you in for a period as you would be annoyed if the credit records issue was resolved in a few months, thus allowing a cheaper rate to be obtained.

The unbiased site may help you find a mortgage broker and the CML has guides which may be worth reading.

http://www.unbiased.co.uk/find-a-mortgage-adviser/

http://www.cml.org.uk/cml/consumers/guides

In regard to the credit record issue, have you thought about asking your local MP for help. If your MP wrote to the company concerned to make an inquiry, you might get the record corrected abit quicker. The problem of debt and credit reference agencies is on the political agenda at the moment, so they might be interested in helpling. My moto is that if you don't ask, you don't get. Also the election is only months away so they may be very keen.

If you are a bit embarased about contacting your MP, you could follow the advice on your previous thread. You need to write to the company (Hillsden?) that applied the wrong information. The links in conmankillers and basa48 posts contain links to sites that have advice/letters to follow. This will take longer than if your MP got involved. Believe me, having worked in financial services, if a company receives a letter from an MP, it is given priority and they will make sure they deal with it properly.

Huckster

huckster:

I think your point was that you already know the SVR and this is high due to your husbands credit record.

I stand to be corrected because this is not really my area but surely ilonkapav's point is correct.

There is only one SVR per lender and it varies according to bank rate and not the borrowers's credit rating.

Jalexa

In Shells first post it mentioned that they could only obtain a 'high interest rate mortgage'. I took this to mean that the mortgage is not with a normal 'high street' lender.

With some lenders their SVR rate may be pretty expensive and I understand the rate is not standard. I believe the SVR applied by these companies does depend on the credit records and other application details. Perhaps the company concerned have increased their SVR rate since the previous fixed mortgage was arranged.

I may be wrong, but I have a theory, that 'sub prime' type lenders operate differently. You would think that the SVR may be cheaper than the previous fixed arrangement, but I took it from Shells post, that they have been be given a higher SVR rate.

Huckster

huckster:

Ah, I see what you are saying. I should stick with energy.