Renegotiation of Sub-Prime Mortgages

A sub-prime mortgage is one given to someone with a poor credit record, and therefore a risk. To offset the risk, a higher interest rate is generally applied. Once you have successfully made your repayments without missing any for a number of years, you might be able to apply for a regular mortgage on the basis of your good payment record with that lender.

The arguments in your favour could be:

• You have demonstrated a good history of repayments without a single missed or late payment.
• Your sub-prime status might have been due to you having no previous credit history (just as bad as having a poor credit history). You can negotiate since you now have a good credit record.
• You can prove that your circumstances have changed, and that you have proof of income that you did not have previously, a fixed address that you did not previously, a full-time job that you did not previously, and savings in the bank.

If you are refused, then keep maintaining your payments, because you will eventually be successful, and that will help you with other credit applications such as for a major credit card.