cheshire mortgage corp

[ksmiuk]

Been told that this company deal with mortgages post IVa but have high interest of 9.8% anyone dealt with them before? Thanks

[kallis3]

I've not heard of them before, and it does seem a high rate to have to pay.

Hopefully Welshboy will be along to comment on this company.

[Welsh Boy]

ksmiuk

You are correct they do in fact deal with IVA`s, their rates reflect their attitude to lending in this marketplace. Tony

[plasticdaft]

Again another company that gains through those with colourful credit history. I know they take an increases risk in lending but if the lending is secured against property of greater value than the loan surely they cant fail to get their money back??

[Max]

Absolutely right plasticdaft - in fact one could argue that an ex IVA client would be far more careful in that he/she will not want to make the same mistakes again. I am told that the Chelsea BS are reasonable with ex IVA but they want to know all the ins and outs.

[Michael Peoples]

A couple of years ago there were many companies willing to lend at reasonable rates to those in IVAs. However, there are very few now and I suppose those that do can basically charge what they like given the lack of competition. This will only change when the supply of credit is restored. The Chelsea used to be one of the cheapest in the market if you met their criteria but I am not sure if they still lend in adverse cases.

[plasticdaft]

Guess I just have to hope rates stay low for a year or 5!!!

[Skippy]

We've just fixed our mortgage so expect them to stay low for 5 years and then rocket just as we're coming to renew!

[size5]

My own opinion, for what it is worth, is that interest rates will remain the same for a little while longer before gradually starting to creep up again, probably just after the next general election, or is that too cynical a view?

Regards.

[Andrew Graveson]

I think that may be well-placed cynicism size5!

We shouldn't forget that the link between interest rates set by the Bank of England and the interest rates offered by "sub-prime" lenders is not a strong one.

What the Bank of England do with interest rates is probably of less relevance to IVA-related mortgages than future house price movement and the sentiment of those who supply lenders with funds.

[Skippy]

I agree Size5. We were offered a tracker or a 2, 3 or 5 year mortgage so we went for the 5 year as rates aren't going to drop any further. It's only £40 a month cheaper than what I was paying, but it's better than nothing. Unfortunately it's still interest only but there's no way we could afford a repayment.

[whichwaynow]

I have just rung the Chelsea and asked them about IVAs. They wont touch them now till they have been completed at least 3 years.
Here is another lender that likes to make money out of the market at the moment.
http://www.platform.co.uk/intermediarie ... t_btl.aspx

[Max]

Thank you for info about the Chelsea. They have broken a promise they made when they took over the Catholic Building Society - they promised they would keep the ethos of that Society in helping those in difficulty or those who have been in difficulty - they appear now unwilling to do so.

[Michael Peoples]

Unfortunately there are factors outside the remit of the Chelsea. I am sure they would love to be still lending as it was a profitable business for them but given the lack of securitisation and the recent downgrades by the credit ratings industry makes it much more difficult to do so.

Unfortunately the Chelsea seems to be tarred with the same brush as all adverse lenders even thought they were much more selective about who they loaned money to and have only a small commercial loan book. A few years ago I was told by a developement manager at the Chelsea that the default rate among their adverse clients was way below that for first time buyers. People who have had problems in the past and thought they would lose their home are much more likely to maintain future payments than those having problems for the first time.

[whichwaynow]

What annoys me is that most banks wont even let you apply. You mention IVA and they shut the door in your face. I must say that HSBC were very good in they did look at all the facts. Our new mortgage is due to start with them on `July 1st. Just as well as had a letter from our existing lender today saying they were going to put up the SVR when our fixed rate ends. How can they put up a rate when the BOE base rate is so low ? Still they can take a running jump now we have left them.