Advice needed: my first mortgage renewal

Jamey_2

Hello.

My girlfriend and I bought our first place in January 2007. We got a 100% mortgage on a two-year fixed rate and we're locked in until the end of the fixed-rate period.

Next January (2009) that fixed rate period will end but because this is the first time we've ever done this (coupled with the current hysteria around the mortgages market) we're both quite nervous about what will happen and have some questions:

1) How far in advance can we expect our current lenders (Mortgage Express) to write to us to offer us a new deal?

2) What happens if they don't offer us a new deal?

3) How far in advance can/should we start looking for deals from other lenders (assuming we can even get one - our equity is still near the 100% mark I imagine)?

4) Are we going to die cold and hungry in the gutter?

Thanks for reading, all responses appreciated.

koexelek

1) probably a week before your current deal expires... thus not giving you enough time to shop around for alternatives :rolleyes:

2) If that was the case, you would just go onto their standard variable rate ( currently 7.14%)

3) the average mortgage offer is valid from 3 to 6 months, so probably best to start looking seriously late September/ early October. Best loan to value you will get these days is 95%, so you really need at least 5% of equity if you want to remortgage.

4) Hopefully not :cool:

dimbo61

Can you either overpay on the mortgage if allowed or save into tax free ISA,s
every month untill your deal runs out.
Hopefully the market will have picked up and if you have cash in the bank or overpaid on the mortgage you will be able to build up more equity in your home and therefore have 5/10% equity in the property.
This will give you a greater number of lenders and deals to consider when you come to remortgage
GOOD LUCK