Bradford and Bingley large LTV mortgages

windywoo

I have a 100% ltv mortgage with Bradford and Bingley and am due to finish my rate in 9 months. I am aware that the government want to reduce the books down and won't be offering new rates to anyone coming off a rate. It is likely that my house will have gone down in price by then as well.

I'm really worried now because not only will I potentially be in negative equity, I will also need to find another high LTV mortgage rate.

I realise that I could stay on the standard variable rate but this will leave me very vulnerable to interest rate changes.

What are people doing in this situation? I cannot save enough for a deposit and to cover the negative equity in 9 months. As a first time buyer I knew I had to take a chance with negative equity and a high loan to value mortgage but I never expected the company I had my mortgage with to no longer be able to offer any form of retention rate.

opinions4u

For decades mortgage lenders only had one interest rate - their standard variable rate.

Wholesale money markets changed this.

Wholesale money markets dry up, so it changes back.

If your mortgage says "xx% for yy years followed by our standard variable rate" then there is little you can do to compel them to offer you anything else.

The market has changed and you, unfortunately, lose choice because of it.

Fingers crossed BofE rates are going to come down and the SVR of B&B won't be too damaging to you.

Ian_Griffiths_Halifax

Is your mortgage with B&B or Mortgage Express?

Are you on Interest Only or Repayment?

I can't see you being able to move to another lender, but I'd guess that the Standard Variable Rate won't be far off what you are paying already.

Check your Mortgage Offer Letter to see if you go onto a Base Rate Tracker after the Fixed Rate ends. Many are expecting Base Rates to fall shortly so you'd benefit if that were the case.

In the mean time, cut back where you can.

windywoo

I am with B+B and on Repayment. I know I could move to interest only as a last resort.

I just assumed I could stay with B+B for long enough to be able to move to a standard mortgage rate. I guess I still can I'll just have to prepare for variable rate changes throughout.

Serves me right for making assumptions!

Ian_Griffiths_Halifax

So you have paid some of the mortgage off, but depending on how long you've had the mortgage, you may have only paid off the costs and charges that were added at completion.

windywoo

Yes. Based on the assumption that the price of my house hasn't changed my current loan to value is 96%

Ian_Griffiths_Halifax

Keep chipping away at the mortgage and see if you can overpay or put money into savings in case you need to subsidise your payments in the future.