Fixed mortgage coming to end, what to do?

KBarnett_2

Hi

I took a 100% mortgage back in June 2006 and fixed it for 3 years. Had a call from my lender, Co-operative Bank this week to say it was due to finish in March! They say the 3 years doesn't start from when you actually bought the house, from when the offer was made to you! Does this sound right as I wasn't expecting this?

Also they want to talk to me about new deals/products but I am currently on 5.34% and am wondering if I am better just switching onto the SVR which is less than I am currently paying now until I see a deal I like.

It is unlikely we will get an offer from anyone else as we must still owe about 99% of the loan and I don't want to pay the £995 remortgage fee Co-operative's website quotes. They also only hav products for 15% deposit or 25% but I don't have any. I don't understand how a remortage works with deposits.

Any help welcome

Thanks
K

beecher

Your mortgage offer would've made it clear when the mortgage ends - often they aren't exactly 3/5 years.

You're correcte when you say that you probably won't be able to get an offer elsewhere. If I was you I'd find out if the Co-Op are willing to offer you any deals. While the SVR might be cheaper at the moment your Loan to Value ration is going to be growing each month. You run the risk of being stuck on the SVR when interest rates increase, while being stuck in negative equity so if the Co-Op offer you a 5 year fix at a rate you can afford it may well be an option

MarkyMarkD

Many lenders will ignore your LTV when offering you a product switch. Others may calculate an LTV based on house price indices, and hence say that you can't have anything if you are around 100% LTV or so.

It is almost definite that you won't get a better deal than your present lender with that sort of LTV, so as beecher says I would ask Co-op what they have available for you - if anything - apart from SVR.