HELP!!!! need remorgage advice

MuckinFunkee

Hi, our mortgage is due for renewal in june, we will have had it 2 years and its our first renewal so we are going into it a bit blind, heard Martin on the sara cox show on radio 1 today and about had a heartattack, he was on about its a bad time to buy and I just caught the tailend of something about companys will only remortgage up to 70% of the value, obviously I have no where near the other 30% to pay up so what do I do

Any help greatly received, H

beecher

What is your LTV do you think? You need 90% in order to remortgage with another lender, and you need to be realistic about the value of your house. If you remain with your existing lender you may be offered a deal, or be placed on their Standard Variable Rate, or a tracker if you're lucky. Check your mortgage documents to see.

Who's your lender?

_Andy_

MuckinFunkee wrote: »

Hi, our mortgage is due for renewal in june, we will have had it 2 years and its our first renewal so we are going into it a bit blind, heard Martin on the sara cox show on radio 1 today and about had a heartattack, he was on about its a bad time to buy and I just caught the tailend of something about companys will only remortgage up to 70% of the value, obviously I have no where near the other 30% to pay up so what do I do

Any help greatly received, H

Impossible to give you any advice at the moment as you haven't said what your LTV (loan to value) is. What would you say the house is realistically worth and how much is owing on your mortgage?

avfcforever

I am in a similar situation to you Muckin (I presume) as I sat down with the mortgage advisor that sorted our first mortgage out 2 years this April. Although I have listened to the news, and done some research I wouldn't class myself as fully up to speed on the situation. The outcome of the meeting put us in a dilema of two choices:

After we get a new house valuation (from a few Estate Agents) we will be able to establish a bit more accurately our LTV. We estimate it is between 75% and 81%. The deals on the advisors computer drastically dropped in availability, and increased in rate as the LTV went up!

As we like the security of the fixed rates, we looked at these, and the best 2 year fixed rate was about 6.19%! (we are currently on 5.19%) so an extra £50 or so a month! This will give us the security of knowing how much we are paying, but at a pretty crap rate, even over the last 2 years!

Or.. we stay as we are on the HBOS SVR which is 4.84%, saving about £30 a month (which we would probably overpay). I thought it would be a no brainer to do this, but if our house price drops by 10% by the end of 2009 as an example, then are LTV will definately shoot up, and we may not be able to remortgage... unless the banks start loosening up the purse strings!

Our fixed rate ends on Feb 28th so starting to get a little jittery about what to do! For the record I have no bad debt, or history of not paying, etc.

Any/all advice would be greatly appreciated. Sorry to the OP if you feel I've hijacked your thread..

blueberrypie

MuckinFunkee wrote: »

Hi, our mortgage is due for renewal in june, we will have had it 2 years and its our first renewal so we are going into it a bit blind, heard Martin on the sara cox show on radio 1 today and about had a heartattack, he was on about its a bad time to buy and I just caught the tailend of something about companys will only remortgage up to 70% of the value, obviously I have no where near the other 30% to pay up so what do I do :(Any help greatly received, H

When people say the mortgage is "due for renewal", it doesn't mean that the old mortgage comes to an end, and it doesn't mean that you have to pay the mortgage off. All it means is that you're out of your tied-in period, so you have the freedom to look for a new mortgage deal.

Many people find it better to remortgage when their tied-in period ends - maybe their equity has increased, or maybe they're earning more, etc. But some people - those who don't have much equity in their homes - will find it difficult to remortgage, because lenders are currently reluctant to lend 80 or 90% of the value of the property. Those people will simply go onto their current lender's SVR (standard variable rate) - or sometimes a tracker - that's all. So stop panicking :-)

Conrad

You will have the option to consider your existing lenders deals. That is not a remortgage.