another bad credit mortgage question

[blushingm]

We had a problem about 2 years ago when dh had his hours at work cut and we could not meet our obligations with regards to credit cards, loans etc. So much so we ended up with a debt management plan. We have, however, never ever missed a mortgage payment

Our fixed rate is due to end soon and i don't know what would happen next. Our credit rating has obviously been shot to pieces but our current lender can see we've never missed a payment with them. Coud they possibly refuse to give us a new deal or would they just put the rate up really high. Or would it just go to their usual variable rate. And I guess no one else would touch us......so has anyone idea idea what we should expect

sorry I have no idea but we are in a similar situation so watching this with interest

The rate you will be put on after your deal finishes is detailed in the mortgage contract you signed at the beginning of the deal. The lender has to abide by this and cannot stick you on a crippling rate just because they want to. Check your paperwork or ask your lender for a copy.

I know credit card companies can put rates up whenever they feel like it but they are less well regulated than mortgage lenders.

Usually the rate you go on to after the deal ends is your lender's standard variable rate. At the moment this is usually very competitive and most people are advised to stick with it as it is better than the fixed rate deals on offer.

So don't worry, whatever they think of your credit rating your lender cannot put you onto a cripplingly high rate.

Just sit tight.

thanks dancing - you have really put my mind at rest. The contract say it goes to their standard variable rate - so we should be ok.........i hope!

Yes you will be fine. It is a legal contract and they have to abide by it.

You are not alone, there are lots and lots of people who are having trouble remortgaging as the banks have really tightened up their lending policies so even people with good credit records are being turned down.

I am in the same situation but as my lenders SVR is currently 2.5% and is guaranteed not to rise to more than 2% over the Bank of England base rate I am quite happy at the moment.

By the time rates start to rise the economic situation will have eased and it will be easier to remortgage. And you should have repaired your credit rating significantly by then.