Remortgage advice please - Freaking out

skintmummy

My first time buyer mortgage is up in a few months and I am looking for some advice as I am getting myself all confused amd upset at the thought of having to £££'s a month more on our mortgage.

Our situation is we took out a fixed interest only mortgage for 2yrs on a rate of 6.15% with GE for £171000.
We have since took out a secured loan with GE for £26500 (I know this was not one of my best moves).
We also have cc debt/overdraft amounting to £18600.

When we get quotes for the mortgage do we quote that we need £171000 of the £171k plus the £26k.

We are managing fine as we are now but could not manage a job of £200 - £300 a month.

Does anyone have any advice on where to start as I believe if we move the mortgage we will have to get a deed of postponment has anyone had any dealings with these.

Our property should be worth around £190-£195k.

Thanks for any help you can give.

SM X

lindens

You won't get a mortgage for £171K plus the secured loan as this comes to more than the property is worth. You also need to take into account LTV so I doubt you will get a mortgage for more than £171K anyway. And with debts like those I'm afraid you must be prepared for a hike in payments as you will not get a very good deal.
Sorry for the bad news

lisyloo

all confused amd upset at the thought of having to £££'s a month more on our mortgage.

This is a reality for a lot of people as rates have gone up since you fixed.

When we get quotes for the mortgage do we quote that we need £171000 of the £171k plus the £26k.

You will need to make it £197.5K as the loan is secured on the property.
However as your valuation is max £195K then you simply will not be able to remortgage elsewhere.

We also have cc debt/overdraft amounting to £18600.

I don't want to be judgemental but it sounds like you have living beyond your means at a time when interest rates were VERY low (and they have risen a bit since the time you fixed).

We are managing fine as we are now

The debt/overdraft implies otherwise but of course we don't know what that was for.

but could not manage a job of £200 - £300 a month.

As you can't go elsewhere then the first step is to see what rate you can get with your existing lender (by phone or look on the web).
The see if you can come to an arrangement wherey you can afford the payments e.g. you could maybe try extending the term if you are young.

If you can't afford it then you have some serious thinkng to do.

One solution would be to get a lodger to cover the extra.
Another is to sell (but it not a great market at the moment).
Another solution is to move out altogether, move in cheaply with family (if you have nice and willing family) and rent the whole place out.
Other option are voluntary arrangements, repossession, bankruptcy etc. but these can have serious consequences so you would need to be getting proper advice on that if you get to that stage.

skintmummy

Thanks, so I take it that when I look for a remortgage I need to be asking for £197.5k then, but I know I would not get that, looks like SVR for me then.

lisyloo

You can see whether your lender has other deals and change to a new deal e.g. a new tracker or fixed rate.
It doesn't have to be SVR.

There is no chance with other lenders as no-one does >100% mortgages.
Sorry, but may as well tell you the truth otherwise you'll be wasting your time.

skintmummy

Thanks at least I know how to approach it now and not waste time, looking for something that is not there.

SM X

dunstonh

I am getting myself all confused amd upset at the thought of having to £££'s a month more on our mortgage.

That is quite normal. Its just part of the normal cycle of interest rate you would expect. The good news though is that interest rates are still below the long term average so the increase you have wont be as much as it could be.

Thanks, so I take it that when I look for a remortgage I need to be asking for £197.5k then, but I know I would not get that, looks like SVR for me then.

You are not going to get a remortgage on your figures. You are basically stuck with what deals your current lender is willing to offer you.

It may be worth a visit to the debt free wannabee board as the information you have posted indicates you are living beyond your means. Catch it early enough and there may be things you can do and the good posters in that section may be offer ways in which you can help yourself that you may not have thought of.

happybroker

if you check with your existing lender for new rates they will put you through to their broker arm, GE Money Lending Solutions which is based in Cornwall.

They are currently making the field sales team redundant so you may be dealt with over the phone but they charge a minimum broker fee of £1000.

You need to speak to a good whole of market broker who will have access to GE's products and will hopefully charge a lot less. GE used to charge 0.1% more on all their rates if you went direct also.

I know this as I have friends who for now work there (until redundency comes through)

good luck