subprime interest rates.

B

bobajob

Guest
I bought a house four years ago with a subprime mortgage.

I was told by the broker that if i keep my repayments up to scratch, within say two years I could go to a normal lender.

Unfortunately that is not the case anymore.

So at the moment i am stuck with the subprime mortgage at 7.5 percent over 40 years.

This is not sustainable for me as my wages are quiet a bit lower now.

Is there any hope in the future, or will I have to sell up and start again.

I could handle a normal rate of interest.
 
where is all the educated finacinal people that have spent yeRS AT THIS GAME.
 
No real answer to your question I'm afraid.

All you state is correct, it is no longer possible to refinance sub prime debt, when you took it out it was indeed the norm to spend a couple of years cleaning up your credit rating and then switch to main stream lender.

If you are in negative equity then you don't even have the option of selling up and starting again.

If you are not then maybe it is an option, however the chances of getting another mortgage then to buy again are probably slim.

Best case scenario possibly to approach your lender with a view to getting temporary leeway with your repayments.

As I say no solid answers available, unprecedented times, no knowing where it will end.
 
Thanks for the reply wbbs.I would say there is a lot of people in my position and even worse off.The lender i am with is going to get an injection of a billion euro from us.If they were to get taken over and restructured ,would they then lower the subprime rates to a normal level,or how would that work.
 
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