Remortgage with poor credit rating

M

MunsterMug

Guest
I want to remortgage to cover the following:
1) Existing PTSB mortgage 103k
2) Credit Union Loan 21k
3) Bank Loan 1 22k
4) Bank Loan 2 5k
5) Home Improvement/Convert Garage into Extra Room 14k

Total Remortgage 165k

House value around 200k.
3 or 4 missed payments on Bank Loan 1 but all others up to date.
PTSB have so far refused to give a one plan top up.
Broker has offered remortgage at 5.75% apr which will cost €200 a month more than current PTSB rate plus around 3k in fees to switch.
Any advice, PTSB not helpful at all.
 
You dont say what your Income is.

Also ptsb oneplan is like a flexible drawdown ..

when were the arrears in mge?

Looks like your broker is merely offering you one of the 'impaired credit' deals.

need some other facts before I could suggest anything.
 
Income 41k approx.

Arrears in Bank Loan 1 in last 6 months but re arranged this loan couple of times before to cover overdraft most recently a year ago. Talked to bank and told them I would clear with remortgage so am not repaying this for last 3 months.
No overdraft now and don't use credit cards either.

Broker offer is with GE Money (credit repair bank).
Broker said that just the bank loan above is the cause of my poor credit rating.
Broker charge €750, GE charge €850 plus solicitor costs all add up to about 3k.
To go with GE for 3 years would cost me over 10k more than getting a oneplan with PTSB.

My repayments are around €1550 a month. A oneplan from PTSB would be around €900 over 25yrs. My current PTSB mortgage is for 30yrs and I have 5yrs repayments made so far.
Any suggestions
 
I would suggest you re-start repaying bank loan 1 ASAP; keep it and everything else up to date for a minimum of 12 months; forget the €14k for home improvements and then look around for a new main street mortgage to consolidate your debts. You need to prove that you are an acceptable risk to a lender and that you are not a compulsive borrower.

Sarah

www.rea.ie
 
have to stress as Sarah has already mentioned, start repaying this loan ASAP, it is not acceptable to a lender to say I have not been paying this loan as I had been planning on repaying it from proceeds of a remortgage.
The longer you leave it unpaid , the worse your ICB record will be, the harder it will be to obtain any further credit.

Unfortunately it will be difficult for you to obtain a remortgage with arrears, or even a top up with your existing lender PTSB. Lenders simply do not take on loans with an arrears profile, with the exception of GE money and Start who will charge a higher rate of interest. ..

You realy only have two options go with the GE money at rate quoted. or as already advised ( personally I would recommend this course of action) start repaying loan, and get your credit rating back on track, in 12 to 18 months you may be able to obtain a remortgage .. you will have to explain arrears, ie out of work, illness, etc etc....

Sorry if thats not what you wanted to hear.

Niamh
 
You could attempt to self repair this. GE will lend the money but wont tolerate an arrears situation. If you actually are prepared to face a payment of €1500 then what I would do:

- Consolidate into the credit union and keep those payments up to date for about 12 months;
- Keep the ptsb up to date and release equity to clear the above in 12 months time with your own credit intact.
- forget the home repairs for the moment.

Hope this helps
 
Must convert garage asap.
Will go with GE unless I can convince PTSB to give me a oneplan loan.
If I go with GE I hope to move back to mainstream bank in 2-3 years to get a low interest rate with my credit repaired.
This will cost a lot now in fees etc but I see no other option.
 

some questions that might help us , help you...

what is the apr on all the loans ?
how much do you earn ?
how much can you afford in repayments every month ?
 
apr on loans are around 9.5% and credit union general apr for one loan.
earn 41k.
Hope to repay around €900-€1000 a month on €170k remortgage.
 
MunsterMug said:
apr on loans are around 9.5% and credit union general apr for one loan.
earn 41k.
Hope to repay around €900-€1000 a month on €170k remortgage.
Click to expand...


The most important thing is to get that loan back up to date....

Try and stretch yourself to pay off that 2.5k early...

and forget about the extension until you finance is in better shape...

if you pay €1000 for 12 months that will be a big chunk gone off those loans , and if everything is up to date you might get a normal credit morgage , at a good apr....
 
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