remortgaging? Advice needed

L

lanie

Registered User
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We are based in NI. Last year we took out a 100% mortgage on £179,000 at an interest rate of 5.14%. It is due to expire next June 2009 (1 mth before our wedding!!) and then we need to remortage?
If I am right we will have paid off nearly £4,000 leaving our mortgage at just over £175,000 (hope I am right?)
Does the fact that house prices have fallen and we had a 100% loan affect our remortgaging. I know lenders are being tougher with lending at the moment. Any remortaging sites I have looked at have all been based in LTV of approx 90%. We would need higher than that. If my maths is correct 98% !! I am really starting to freak out. We would have a little bit of money from wedding presents two months later Aug 09 but that is too late and we'll have to hang onto it for another year. Would we best to take a remortaging rate for 1year (if we can) and then after that yr when we go to remortgage again pay off with our little savings.
 
Unless the value of your house increases by at least 10%, refinancing won't be an option I'm afraid.
 
What does that mean for us? Do we revert to banks standard variable rate that we are with at the minute or do we loose our house?
 
It's not clear from your original post but I think you're saying that your fixed rate is due to expire in June 2009. At that time, you'll be offered a choice of more fixed or variable rate options. All you have to do then is choose one of the options that suits you.
 
What is refinancing? The poster before you said this would not be possible. Do we just not get any halfway decent deals..
 
I need to say that I have very little experience in money matters as you can prob tell. Getting our mortgage last year was the first loan we ever took out and I suppose we were and still are totally blind!
 
Refinancing means moving your mortgage to a different lender. In the circumstances you describe, I'd say this will not be possible and you'll just have to stay with your current lender until you get down below 90%.

I'm basing this on RofI practices. There might be different offers available in NI - I don't know.
 
actually, quick question. If the banks are not offering 100% mortgages now will they still let us onto the srv if our mortgage is 100% or even actually higher. EG if value of house is 160,000 market value and our mortgage is above that.
 
Yes, as long as you continue making your repayments the value of your property is irrelevant to your lender.
 
can we move to another banks svr or do we have to stay with our own lenders?
 
can we move to another banks svr or do we have to stay with our own lenders?
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