Hello,

My discount rate deal ends in July and I am looking at new deals. We need to take some equity out to consolidate debts and do some home improvments, we are looking at borrowing approx 93% of the property value.

We've been offered a fixed rate over 3 yrs, which I would prefer in the current financial climate, but the rate is 8.14% and would only make us about £100/month better off. Further we have been advised that the product is a 'nearly prime' product.

Most financial products are in my name, although mortgages are joint with my wife. We have had some trouble recently making payments on time, but there are no arrears or CCJ's.

I'm not convinced that the deal that has been found is the best. Any advice?

thanks

Hi...if you have had late payments on your mortgage then this will create major problems when applying, especially with a 95% product. Probably First National. Who is your current lender now?

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Regards

Ian

The late payments have been within the realms of the mortgage lenders terms of payment and they have advised that they do not affect my credit rating. The usual time lapse is 10 days and this has only happened twice. Other late payments are on unsecured debts, which we are wishing to consolidate in the remortgage.

Hi...have you approached your current lender who under the terms stated should not refuse a new rate,as you say, to allow you to consolidate with them at a better rate? Late payments on unsecured debts are allowable with many lenders and I would assume that with the rate offered may just reflect your credit score. First National have tracker rates slightly better than the fixed, but even though we expect the base rate to drop it can also rise. Some consolation is that they have a 1 or 2 year rate which may be acceptable to you?

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Regards

Ian

Hi it has been some time since I first started this post.

Anyhow I did find a better offer on the mortgage and they were willing to overlook the couple of late payments on unsecured debts. However, a survey was done which came back with a valuation on our property of the same amount as we wished to borrow. We'd lined ourselves up with at 90% LTV mortage, whereas now this is a 100% LTV mortgage and is outside the realms of what they are offering. Whilst the houses on my estate are not selling like hot cakes, they are holding their value.

I was advised that whilst that may be the case in respect of what houses are selling for, the surveyor has to protect the lenders risk and therefore undervaluations are commonplace in the current climate.

So I need to move fast. I have spoken to my current lender and they may be able to offer me a better rate, but an option is releasing some equity in the form of a loan that will run alongside my mortgage. If this is accepted we will be about £400.00/month better off. Thing is now that I am out of my discounted term, my mortgage is a SVR tracker as will be the loan and if rates go up but values decrease we'll be in a bit of bother, although we won't be tied in and will be able to have another go atthe remortage thing.

I am very tempted, as it will achieve what I want it to do. Do you think that I should go down this route?

Thanks