Archive for Credit Rating
Dec
07
Can my current mortgage provider refuse to renew my mortgage with them?
Posted by: | Comments
Myself and my partner bought our house 2 years ago and the fixed rate is coming to an end at the end of December. The thing is, we got into a bit of trouble at the start of this year and we got behind with our payments for the mortgege, car finance and a few other direct debits, all the arrears have now been paid off but our credit rating has been affected, especially mine. Our mortgage provider is the Halifax and i’m worried that when we go to renew with them they will not want us as a customer anymore. Help please??? Can they tell us to find another lender???
I should add that we were first time buyers and we put £30,000 into our house so we had quite a big deposit and we have a lot of equity in our house.
Rent Back Fast
Oct
07
Consider Unemployment Insurance to Stop Financial Difficulties Arising
Posted by: | Comments
Unemployment insurance can stop a great deal of financial difficulties from arising if you should find yourself a victim of redundancy. If you stop to consider how you would pay your mortgage each month, loan payments or indeed your essential monthly outgoings such as heating, lighting and food bills, taking out insurance makes a lot of sense.
To cover your income you would need to consider unemployment insurance called income payment protection. You insure a set amount of your own income and if you need to claim this is what you get back as a tax-free payment. With this money you are able to continue paying all of your essential outgoings which of course could include your mortgage, loans and any other bills that keep the home running each month.
If you just need to cover your mortgage repayments each month then consider taking out a mortgage payment protection policy as unemployment insurance. This is a very valuable policy as it can mean the difference between losing your home to repossession by the lender and keeping it. Because you are just insuring your mortgage payment a policy might not cost as much as if you were insuring the whole of your income.
Loan payment can be kept abreast of with loan payment protection. You would insure up to a certain amount of the payments of your loans or credit cards if you borrow on these. This means that you do not falter on the loan and so your credit rating remains intact. It also means you are not at risk of the lender taking you to court.
Unemployment protection would provide you with your income once you had reached the timeframe set out in the policies terms and conditions. Providers will generally state a deferment period of between 30/90 days. Some will offer to backdate to day one of you being unemployed or incapacitated so you have to check the terms for this too. You would then receive a payment each month for either 12 monthly payments or 24 monthly payments and then the cover would stop paying out. During this time you would have peace of mind which allows you to concentrate on finding work.
As no one can say that their job is safe considering unemployment insurance is essential. Of course you could think that you would be able to claim benefit from the State to help you get by. While you may be entitled to receive help the help may not be enough. In the case of mortgage payments you would only get help with the interest part of the mortgage payment and then up to a certain amount. You would also have to wait many months before you would see any money. You would have to think twice about relying on savings because it could be many months before you found suitable work and savings might not last that long. If you take out a policy with an independent provider you will get the cheapest premiums and make huge savings when compared with high street lenders.
Sell and Rent Back
Sep
01
Repossession Stopped - Why Making The Right Choices Can Help You Keep Your Home.
Posted by: | Comments
Everyone dreams of owning their own home but that dream can turn into a nightmare often through no fault of your own. Redundancy, divorce, illness and credit problems can create a situation where you’re not able to make your monthly mortgage payments.
Without immediate action, mortgage arrears can very quickly descend into full-blown repossession proceedings and the nightmare of losing your home - and any equity you have in it - becomes a reality.
The good news is that help is at hand. By remortgaging your house with an experienced broker you can stop repossession proceedings in their tracks and get on with your life with a new mortgage that suits you.
Read on to see how these specialist companies can help you no matter where you are on the repossession ladder.
1. MORTGAGE ARREARS
Missing even just one mortgage payment can cause enormous damage to your credit rating and, unless you can pay off the outstanding amount immediately, can quickly become a real problem.
A missed payment is logged as mortgage arrears - if that payment isn’t settled immediately it rolls on to the next month meaning that, until the outstanding amount is settled, you are registered as being in mortgage arrears.
2. REPOSSESSION PROCEEDINGS
Missing several payments or having longstanding mortgage arrears could lead to your mortgage lender starting repossession proceedings.
The first step would usually for the mortgage company to issue a claim form citing the time and date that you would be required to appear at county court.
This can often be a confusing document with a great deal of information including detail of your account, description of the property, details of any previous attempts to repossess the property and details of your arrears.
The claim form is accompanied by a form called an N11M “Form Of Defence”; it allows you to explain your circumstances and what you will do to resolve your mortgage arrears and has to be completed within 14 days.
3. COUNTY COURT HEARING
Even if you have replied to the claim form you must attend the court hearing. Don’t expect an Old Bailey style trial - County Court hearings take place in a private room with you, the district judge and the lender’s solicitor.
You will get a chance to tell the judge what measures you intend to take in order to pay off your arrears.
If your offer is reasonable - for example, by agreeing to remortgage your home, they usually grant a suspended possession order. This allows you to stay in your home provided you pay off the rent plus an agreed amount toward your arrears.
4. POSSESSION ORDER
If you can’t convince the court that you are able to clear the arrears - or if you fail to turn up for you County Court hearing they will issue a possession order. This gives you 28 days to settle your debt or face eviction.
5. EVICTION WARRANT
If you cannot settle your arrears within 28 days OR if you fail to comply with the suspended possession order the lender can apply for an Eviction Warrant without further recourse to the courts. Once an eviction order has been issued, court bailiffs will then set a date when they will visit your property to make sure you have left. The primary aim of repossession specialists is to ensure that this does not happen.
Repossession
