Renegotiating a sub-prime mortgage

Those who have a sub-prime mortgage, are likely paying a higher rate of interest than those with a normal mortgage. While it may have been difficult to get a mortgage when you first purchased your property, it is worthwhile to check if you could switch to another provider offering a better mortgage deal.

Reason why this might be possible include:

• A poor credit record in the past, but now able to demonstrate a clean repayment history on all debts.
• No credit history in the past, but you now have a track record of paying your a mortgage.
• A Change in circumstance, i.e. proof of income, salaried employee, substantial savings.

Cost of switiching a mortgage may include:

• valuation fees (you may be able to have the new lender pay this cost),
• legal fees and associates charges (lenders may pay these costs),
• penalty fees to your existing lender for breaking a fixed rate loan if you don’t already have a variable- rate mortgage.

Even if you cannot switch provider at this time ensure to make all mortgage repayments, which will contribute to improving your credit history and allow you to renegiate at a later date.