Bad credit remortgages for owner occupied properties

badcreditissues

UPDATE:

From November 1st 2017- New lender for Bad Credit Remortgages.

From October 1st 2017 – NO BROKER FEES!

Don’t pay a £1495 fee to another broker who doesn’t have a fraction of the panel of lenders we have!

Ravenwood Mortgage Services have funds from a lender offering excellent terms, with an open minded view to some bad credit.

But funds are limited so please fill in the form below with your details.  As funds go down the lenders criteria will start to get more strict!

  • Your Mortgage Requirements

  • About You

Early January this year (2017) their have been some new lenders appear with excellent terms for bad credit remortgages.  Some rates are only 0.9% higher than normal prime lenders, which is previously unheard of, especially without a big fee.

If in the past 6 years you have been unable to service your credit agreements or you have ended up with a ccj for some stupid reason like an forgotten about water bill, many lenders will reject your mortgage application straight away.

House in Torquay

House in Torquay

Primary residence bad credit remortgages from Ravenwood

Ravenwood Services have relationships with lenders that take an open minded view to people with some adverse credit, as they understand that not everyone with a ccj or default is a complete dead beat.  Ill-health, break down of relationships, temporary loss of work or income are all quite plausible reasons for some credit arrears, while a person may still have a good future of being able to support a mortgage.

Now post Lehman collapse lenders want to know if you can service the mortgage you’re committing to.  No longer is the prospect of further house price increases enough for lenders to lend.  But for reformed responsible borrowers this a good thing not a bad thing and should protect the property market from getting frothy with hot speculative money.

With today’s bad credit remortgages even if some of your bad credit is gone yet it may be possible to refinance away expensive 2nd charge lending and put all the debt on the home into one first charge lender at a reasonable rate.  Also if you have secured borrowing at a shorter repayment duration with a high monthly payment as a result, re financing this away can further reduce your monthly payments so the duration is matched with your entire mortgage.

UK Poor credit refinance options

While it is often true a mortgage from 2006 or 2007 is a good deal and is worth keeping, especially if its interest only, there are still opportunities to refinance at a fixed rate to protect yourself from rate rises in the much longer term.

Interest rates should stay low in the short term (2018 and 2019), but after that, the path of short term rates could be on the rise.  It’s common to keep a mortgage for 7 years, so refinancing with a 5 year fixed deal could prove very savvy even for people with some bad credit history.

Some economists would predict that if interest rates rise so should your personal earnings or wages as inflation would only start to become a problem as the result of increasing wages.

Renting vs Buying even with some adverse history

Renting a home is financially like having a 100% interest only mortgage at about 5-6%.  So if the home that suites your needs is worth about £120,000, the rent is maybe say £7200 a year or £600 a month.

Check out this Knight Frank report page:

http://www.knightfrank.co.uk/research/reports/results.aspx?typeid=research&isocodes=GB&view=grid

If you have some savings like say £25,000 you would only need to borrow £95,000.  Even a mortgage with a rate as high as 4.5% the interest on the mortgage is £4275 a year or about £356.25 a month.  Plus you have the stability of owning your own home and not being given notice by a landlord who may want his property back to sell or to live in him self, or just want to turf you out so he can put his rent up.

Government legislation has recently clamped down on agents charging tenants large application fees and fees for referencing.  But even modest fees and delays getting your deposit back make the costs of moving every 18 months quite expensive.

Its fair to consider that you must repay capital if you get a repayment mortgage, so this you must budget for.  And you must budget for buildings insurance which is likely a term of your mortgage to have.

For a freehold house you should budget for some improvements/repairs and of course if you buy a leasehold flat you need to budget for the management fees.

If you don’t pay your management fees the management agents are quite within their rights to write to your lender and get you in trouble with breaking the terms of your lease and therefore the terms of your mortgage.  They will simply lookup your lender with the land registry.  The lender is shown with the date the lender took the charge.

When borrowers get into financial difficulty it has been known for mortgage lenders to pay the borrowers management fee arrears and just add it onto the mortgage principal as the consequences of not paying the management fees are very serious for the borrower and lender.

Good reasons for an Adverse Refinance

  • Get rid of an existing lender or lender(s) with very high rates
  • Consolidate a high rate 2nd charge secured loan with a mismatched or too short term
  • Existing lender discount variable rate has expired
  • Existing lender fixed rate has ended
  • Existing lender has offered you a cash incentive to refinance away from them
  • Existing lenders term has run out
  • Court has said you must remove partner from the mortgage as a result of separation/divorce
  • Release equity from home to pay for divorce settlement or stop the fire sale of other i liquid assets
  • Raise money for the purchase of another property to rent out
  • Consolidate existing unsecured debt to reduce monthly outgoings

 

 

 

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 1 reviews
I got a remortgage in time to pay my tax bill

Ravenwood got me a remortgage as my accountant had messed up and the inland revenue were getting really nasty to me. They saved the day I am really chuffed with them!