mortgage guarantor

I am after some advice on re-mortgaging my house. It's complicated but I live with my girlfriend but myself & mother are currently named on the mortgage (me & my girlfriend were not in a position to apply for a joint morgage). Our 2 year deal runs out in March 09 and I am trying to work out a way to get both myself & girlfriend on the mortgage.

The problem is a defaulted on a Loan last year which has reduced my credit rating considerably. I spoke to my current mortgage lender who said no credit checks would be done if myself & mother stayed named on the mortgage, however they would not provide a mortgage for me & my girlfriend in view of the default.

Does anyone know if a lender would ignore the default if my mother acted a gaurentor? She has a mortgage free house woth over £150,000.

Re: mortgage gaurentor

Hi Flash,

Unfortunately lenders wont ignore the defaulted loan. A specialist lender might be an option for you but the rate will be higher than that of a prime lender like ptsb, aib etc.

What do you mean by? "Our 2 year deal runs out in March 09"

I can check out rates etc with the specialist lenders if you like.

Brendan

Re: mortgage gaurentor

Hi Bren,

Thanks for your reply, sorry it's taken me a while to respond. When I mentioned my 2 year deal ran out, I was under the impression we had to have some kind of mortgage deal at all times, since then Halifax advise me that my rate will simply go back onto the base rate, currently 4.75 (this happens from next month). I'd be happy staying with this rate, only I have 15 years left on the current mortgage deal & as my mother will no longer be paying towards the payment, me & my partner were looking at extending to about 25 years so that the payment is affordable.

I am happy staying with Halifax but the best deal they offer for someone with 95% LTV is a rate of 4.79% with a £1249 handling fee (5% overall). If I went for this offer I would have to keep mine & my mother's name on the mortgage, which is an option, but not ideal.

Bren, do you think I'm better off going for this deal or are there any half decent offers out there for folk like me with a poor credit rating?

I hope this explains my situation a bit more, any advice is much apreciated as I want to sort something either way between now & march 2009.

Thanks
Robert