FIxed rate is ending, what's the best course of action?

Posted on 11 September 2008

I'm 2 months away from the end of a 2 year fixed rate near/sub-prime mortgage(6.65% which will jump to 8.8%) I'm considering moving to a new build home with the bonus of having a much lower mortgage payment and consolidating my secured loans.

My credit rating is probably poor as it comes out as 550-600 approx when I check it on my credit files (Mycreditfiles.co.uk). I have a mortgage of £165k and £20k secured loan on a 2 bed flat in Scotland worth between £200 and £215k. This would hopefully leave me with a 10% deposit for a new build costing between £150 and £180k approx.

My question is it still possible to get the same kind of near/sub-prime deal I got 2 years ago or maybe I could get something better through a broker such as Charcol?

Many thanks for your help.

Hi David

Thanks for your question.  Firstly if you have been paying your mortgage on time and it is all up to date then you may well qualify for a PRIME mortgage, but if not you can still get a mortgage and look at reducing that 8.8% rate.  Charcol brokers would love to help, give them a call on 0845 4131053.

Secondly for the purchase of a new build flat, I saved the bad news till last, you will need a 25% deposit if you want to purchase a new build flat – Sorry!

Good luck and if you have any further questions please just ask!

 

 

Answers provided in response to Ask Bea are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not neccessarily represent the views, positions, strategies or opinions of Charcol Limited. All comments are made in good faith, and neither Charcol Limited nor Bea will accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.

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