Mortgage Problems this Year for us?

Christine77_2

Hi all

I wonder if anyone here has any advice for us, as I started thinking last night and it got me worrying.

Sometime this year our current mortgage ends and will need to look elsewhere. We have been in the current house 5 years and had a mortgage 10 years, we have never missed a payment, and don’t find the mortgage a struggle. But I think a problem may occur when we come to remortgage. Originally the house was worth a lot more, and also we earned a lot more. 5 years on, we earn quite a bit less and I would say house value is approx only 5 – 10k more than the mortgage we have on it. (about the value of it when we bought it)

For us to get a mortgage on the house, we would need to have 4 x joint salary lent to us! Now I know they used to do this, but doubt they would do it now when we need it? The repayments are not a problem, but I guess they wouldn’t give that amount out?

I cannot see me getting the same paid job again (certainly not this year) , which did not bother me until now as we are still comfortable. Because of the fact that we may not get a new mortgage on the house, do you think we would be wise to sell while we can? We would much rather not, as we have spent 5 years making the house what we want, but are worried we may lose come remortgage time.

Cheers

C

dunstonh

You would have tight lending criteria potentially with other lenders but you can always stick with your current lender.

Just because your deal ends, doesnt mean you have to remortgage. You took out a mortgage for x number of years of which just a limited number of those are in a deal. You can ask the lender if they will offer any new deals to you. These are not credit scored or require a new credit application.

sarah_elton

Why do you HAVE to re-mortgage?

If you wouldn't qualify for a new application, can't you just stay with your current lender and move onto the standard variable rate?

A lot of people seem to think these days that a 2/5/10 year fixed rate/special deal means that the mortgage only lasts that number of years after which you have no choice but to move.

The advisers will be along soon to help you with any deals that may be open to you, but there's no need to worry unless the SVR is silly high and you couldn't afford the repayments. My guess is that's unlikely as most SVRs have come down now, at least some way in line with the BoE interest rate cuts.

feisty1

You have 5yrs left on yr mortgage, you can afford the repayments and yr wondering if you should sell? ?????????????????

When yr deal ends u will default to the svr......

Christine77_2

feisty1 wrote: »

You have 5yrs left on yr mortgage, you can afford the repayments and yr wondering if you should sell? ?????????????????

When yr deal ends u will default to the svr......

No, sorry, we have had a mortgage for 10 years, there is 20 left.

I didn;t think actually about staying with the same mortgage company sorry for being a bit dumb....we just started worrying last night.

We should be ok then, it might go up a bit, to say 1k a month, but that should be fine, phew! Cheers

LadyIndecisive

It might go down too! Depending on what you are on now and your lender's response to BOE base rate cuts.

dunstonh

t might go up a bit, to say 1k a month, but that should be fine

Or it might go down. The SVR for many lenders is lower than many deals that are expiring. You may also have the option to access new deals. You need to be pro-active on this though. Find out what your deal expiry date is, note it and about 10 weeks before its due, find out from the lender what their current deals are available to you and decide if one of those is worth moving on to.

Christine77_2

Thanks all. We are not financially "with it" and our mortgage advisor at the time got us a mortgage thats a Swiss Libor Tracker. even at the moment that has gone down.

After us having a worry last night, and us being a bit useless when it comes to mortgages etc, I think I will be doing some homework on it for the future! Cheers

LadyIndecisive

Blimey - a Swiss Libor Tracker mortgage - over to you dunstonh!

dunstonh

LadyIndecisive wrote: »

Blimey - a Swiss Libor Tracker mortgage - over to you dunstonh!

I'm not going there!

I'm a firm believer in sticking with simple products from high street names. Far less chance for things to go wrong.

Christine77_2

dunstonh wrote: »

I'm not going there!

I'm a firm believer in sticking with simple products from high street names. Far less chance for things to go wrong.

yup, we should have done our homework before being sold this
Our friends put the MA onto us as they had a deal with him too.

Another reason it might have been better to go with another mortgage , but as said, think i'll have to stick with this one :rolleyes: