Hi Hara
Adverse credit mortgage rates are quite high at the moment with additional penalties for people in IVA's and ex bankrupts, but this is a reflection of the current market conditions and is likely to change in the new year (hopefully).
As for paying 60% more on your mortgage, yes, you will over the term! But how likely are you to stay with the same mortgage product for 25 years? Chances are that you will rebuild your credit rating over the coming years and eventually be able to obtain a mortgage product similar to high street rates.
I believe things will be different in March, for example we had two major lenders pull out of the sub prime market this last week which devastated our portfolio, lots of applicants lost access to the products they had been advised on, but within two days we had four more lenders join the sub prime market with very competitive products and we were able to offer all the applicants that had lost their products slightly better options.
Things are changing fast in the sub prime mortgage market. Scare mongering by the media is not helping the situation, but more experienced lenders are weathering the storm by changing products and criteria.
I would suggest that you contact a mortgage broker in February and go through a fact find with them, I am sure there will be lots of options available to you. And I am also sure that any existing fixed rate product on the market then will still be able to beat the standard variable that your existing mortgage will revert to.
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