Will I lose my house

Pooroldron

I am a relativley new home owner, having only managed to get my footing on the property ladder last year. I am with Allaince and Leicester on a fixed rate which is ending next year (around sept). I am finding a lot of the current news alarming, and quite frankly confusing. Can anyone shed some light on the chances of me getting another mortage in sept, considering I have a 95% and 5% secured loan?

Please shed some light for me!!!!!!!!!!!!

Gorgeous_George

You cannot do anything yet so there is no need to worry.

Your mortgage is not going to end next September, it is just the date that your current deal ends. After September 2009 your mortgage will revert to standard variable rate (SVR). This will almost certainly increase your monthly payments but it might not. They could even go lower.

So, don't worry just for now. Put a note in your diary to revisit this potential problem next April and ignore it until then. Of course, it would be sensible to save as much as possible so that you have the maximum number of options available to you next year. But that is good advice regardless of market conditions.

GG

beecher

I wouldn't agree that you can't do anything - you can overpay your mortgage by as much as possible. I'd throw everything at it in an attempt to at least be at 90% LTV in September - you could go to the Debt Free Wannabe forum to get ideas on how to cut back your spending as much as possible. Good luck.

HeadInSand_2

beecher wrote: »

I wouldn't agree that you can't do anything - you can overpay your mortgage by as much as possible. I'd throw everything at it in an attempt to at least be at 90% LTV in September - you could go to the Debt Free Wannabe forum to get ideas on how to cut back your spending as much as possible. Good luck.

With falling house prices that will be extremely hard to accomplish. He'll be lucky to maintain 95% LTV even if overpaying with things in their current state.

Thog

Hello,
Good advice from Gorgeous George!
(a) Your mortgage doesn't end when the deal does ... it usually goes on for 25 years.
(b) Save as much as possible BUT don't rush to overpay in the deal period (you may be charged a penalty for doing so)
(c) When the deal ends and you revert to Standard Variable Rate, look at the rate you're paying and review the options available then.
Thog