# Sub Prime Lender



## celine00 (21 Jul 2010)

Hi Does anyone have their mortgage with a sub Prime Lender? We were advised last year that this would be a great idea, (since we had a few debts to consolidate and our Lender at the time would not top up) 
We were told if we stayed with them for 2 years, and keep good accounts and no new loans (which we have done) we should be able to switch to a normal lender.
The thing is i just heard on rte something about a freeze on everyone trying to switch mortgages.
We were hoping to change this time next year, Any advice?


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## Howitzer (21 Jul 2010)

Who told you it would be a great idea?


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## UptheDeise (21 Jul 2010)

Howitzer said:


> Who told you it would be a great idea?


 
Yes, that's a good question.


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## celine00 (21 Jul 2010)

Hi, It was a company that deals with mortgages, (am i allowed say?) initially we were trying to get a top up,because husband is a sole trader,business was decreasing, we had a lot of loans that we were afraid we couldnt pay, so we were trying to get a top up on our mortgage ,pay off all of our loans and this seemed like a great idea.
Unitl we went to our lender at the time, and they said they were not giving out any top ups. 
So we 'thought' we would re-mortgage , saw the ad in the paper and thought this was a great idea, you could consolidate all loans and get the mortgage all in one lump sum, this sounded great.
By the way, we have never missed a mortgage payment..
So when this company got back to us they said that because husband is a recent sole trader none of the main banks will give us a mortgage, but there are 2 sub lenders connected to main banks who will lend, she said to stay with them for 2 years keep no loans and hey presto they will be queueing up to loan to us...
At the time this seemed like a good idea, now 1 year on it's a complete disaster, we are paying 6.5 or 7% rate, we have no other loans , husband's business is just about ticking over, i have been put on a 3 day week, so things are starting to get tight.
I went to my bank manager and he nearly laughed in my face, and just said come back in about?? a year and we'll talk then. 
In hindsight, we know we should have just stuck in out and defaulted on the loans(at least we would have a nice mortgage) but we have to look forward now.
Anyone got any advice?? Are banks lending?


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## Carey (21 Jul 2010)

I am in a similar situation. We were told it was only for a year or so. Now we can't move and are in arrears. SW and CWO don't want to know. They don't want to know once you tell them the name of the lender. It is a terrible situation to be in. 

OP know you are not alone.


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## moneyhoney (21 Jul 2010)

celine00 said:


> The thing is i just heard on rte something about a freeze on everyone trying to switch mortgages.
> We were hoping to change this time next year, Any advice?



I don't know anything about a blanket freeze but at the moment, yes it is very hard to switch mortgage. Whether that will be the case in another year, who knows.

The main considerations would be:

1. What is the value of your home
2. What is the value of your mortgage
3. Any other debts/outgoings
4. You income - can you service the repayments
5. Do you have a clean credt record

All you can do is keep an eye on all these factors & see where you are in a year's time.


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## Moral Ethos (21 Jul 2010)

Carey said:


> SW and CWO don't want to know. They don't want to know once you tell them the name of the lender.


That is unacceptable. Nice to know that the state will kick a person when they are down.


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## elcato (21 Jul 2010)

How big was the personal loans and how big was your mortgage before moving ? Depending on those figures you _could _be better off but I doubt it_._ On hindsight it was probably bad advice as the banks will not give you a loan now unless LTV is under 80%. As an example if you had personal loans of 100k at 15% and a mortgage of 100k then they would probably balance out but I'd say my figures are way off. I suppose you need also to factor in whether your husbands company would have gone to the wall depending on what was offered as security on them. You may have lost your home as security on these loans also.


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## pinkyBear (21 Jul 2010)

Hi there,
I would stay put, most of the repossessions are currently with sub prime lenders. But would you think of doing a Money Make over, post your details and you can get some great advice hopefully without having switch mortgages.

P..


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## dereko1969 (21 Jul 2010)

Carey said:


> I am in a similar situation. We were told it was only for a year or so. Now we can't move and are in arrears. SW and CWO don't want to know. They don't want to know once you tell them the name of the lender. It is a terrible situation to be in.
> 
> OP know you are not alone.


 
What exactly are you saying about SW and CWO? Are they refusing to assist with mortgage interest supplement? You should be entitled to some assistance with the mortgage payments.

In fairness the rules are stated fairly clearly here


Mortgage Interest Supplement provides short term support to help you pay your mortgage interest repayments. Your interest is assessed as your gross monthly interest less mortgage interest relief and any mortgage allowance or mortgage subsidy payable towards the interest part of your mortgage by the local authority.
You will only get assistance with the interest portion of your mortgage repayments. You will not get help with the portion that pays off the actual loan and house insurance. You should contact your lender to discuss repaying the actual loan.
*If you have a consolidated loan, only the interest portion of your loan that relates to the essential purchase, repair or maintenance of your home will be taken into account. (my emphasis)*

A lot of consolidated loans went on lifestyle expenditure so to expect the taxpayer to fund this element is wrong.


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## Moral Ethos (21 Jul 2010)

SW and CWO's will not assist with subprime mortgages as the interest charged is considered to be above the normal market rates also if the mortgage was never affordable in the first place they will not assist. This has been discussed before. 

The view of SW and CWO's is that you would be better off having the house repossessed and having the people housed in local authority housing. It would be cheaper than paying out MIS on a subprime mortgage.


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## celine00 (21 Jul 2010)

Hi , Thanks for your replies, Originally our mortgage was for €200,000  (House was valued at €375,000 )and we needed a top up of €60,000 this was due to credit unions, personal loans for both of us, the reason they were so high was because towards August 08 husband was promised and guaranteed work which just never happened, so we took out loans on the strength of that.
We now have a mortgage of €261,000 over 37 paying a ridiculous interest rate, and i'm afraid to even ask about a valuation.
I think the only thing i can do is just keep paying the mortgage as much as i can, we have no credit cards, and only 1 loan which is finished in March of next year.
My bank account does drop into the overdraft sometimes and im worried this will go against us.
I got a copy of our credit report and it was good. 
Thanks for replies.


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## pinkyBear (21 Jul 2010)

> paying a ridiculous interest rate,


 you would be paying an even more rediculous rate with Sub Prime Lenders...


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## NorfBank (21 Jul 2010)

pinkyBear said:


> you would be paying an even more rediculous rate with Sub Prime Lenders...



? The OP is with a sub prime lender.


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## pinkyBear (21 Jul 2010)

Misread post sorry!


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## Tessi (21 Jul 2010)

Hi we bought our house in Oct 2006 and because we were only in business 6mths, we couldn't get a mortgage from BOI.  That's despite having €145 thous deposit for a €320 thous home.  We did sit down with boi at the time and told them we were considering getting a mort with start mortgages and when would they consider giving us a mortgage in the futrue.  

They told us to come back in one years time when we had a set of accounts and they'd reconsider.  We went back when we had one years a/c s and they said they'd now only consider giving self employed a mortgage if they had two years of accounts.  

We went back after two years and they said no.  We did ask other banks etc and once you mention a sub prime lender your doomed.  We don't have our business anymore now so only hope interest rates don't go up too much or we will be joining the 600 houses forwarded for reposession at end of june.


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## celine00 (22 Jul 2010)

Thanks for your replies guys , Think we may just hang on in there and hope something happens to make banks want to give us a loan. if they dont I will be 73 when my mortgage will be paid off... If we could only predict the future eh? never would have got into this mess.... Thanks again, Tessi i know how you feel, you get told one thing and then another, It feels like a whole different world in the last 2 years, (2 years ago you could have been made redundant, and found a job with in 2 weeks). Have to wait and see.


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