re mortgaging with neg equity

irn_bru

Hi, as I bought my house in December, I am now undoubtedly in negative equity. A large portion of my mortgage was ported from an existing fixed rate mortgage, which is up for renewal at the end of this year.

What options will I have? Will no other lenders touch me with a bargepole, limiting me to my current lender? Will even my current lender give me a decent rate or will they let me languish on the standard variable?

Thanks in advance....

happybroker

Are you sure you're in negative equity? It's not a given that values have dropped in your area or for your type of property.

Ask your lender if they will be offering you another deal and find out when and also what rate the mortgage will go to at the end of this deal along with what your payments will go to so you can plan.

Get some advice 2 or 3 months before the end of your fixed rate.

All you can do is arm yourself with as much information as possible from people who will know about property values in your area and what mortgages are available nearer the time.

irn_bru

pretty sure.

It's a new build, had 95% mortgage and arrangement fees were added on top. I'm bound to owe more than 95% now, and I don't see many lending more than 90% LTV

thanks

ziknik

Save as much money as you can to lessen your problem.

Some of the SVRs I have seen on here have been pretty good.

It might not be as bad as you think (but save anyway)

sarkin

Would you lend money to someone and the security was less than the money being lent. I would over pay on the mortgage to bring the ballance down or switch to interest only.

beecher

Check your bank's SVR - I've just been looking at mine and it isn't much higher than the fixed rates. Of course that could well be because interest rates are likely to rise later in the year. When is the other part of your mortgage due for renewal as ideally you'd want to tie them up.

Good luck - just try to overpay as much as you can at the moment and see where you are nearer the end of the year.