morgage plus products

cazb90904

We took out a morgage plus product which comes to an end in september. we are in negative equity and have been told by the lender unless we can pay a lump sum they wont offer us a new deal. has this happened to anyone else and what did it mean in money terms. ie how much did payments go up. things are already very tight for us I am really worried

Trying_to_be_good

Who are you with? What did the offer say your payments would revert to after the 'deal' time was over, e.g. Standard Variable Rate, BoE + a percentage?

How much is your mortgage for, what rate are you currently paying, are you on repayment, interest only or a mix, what plans did you have for when the deal ends? It could be that payments will go down, stay about the same, or go up despending on the answers to the questions.

beecher

Your mortgage won't come to an end, it just means they won't offer you a fixed rate/tracker. You will probably go onto the SVR so need to find out what that is - it may be lower than the rate you're paying at the moment. The concern is that rates will go up, so you really need to plan for that eventuality.

feisty1

cazb90904 wrote: »

We took out a morgage plus product which comes to an end in september. we are in negative equity and have been told by the lender unless we can pay a lump sum they wont offer us a new deal. has this happened to anyone else and what did it mean in money terms. ie how much did payments go up. things are already very tight for us I am really worried

Was this Alliance & Leicester?
I am presuming you owe more than the value of yr home. If you have no funds to reduce the mortgage your rate will automatically switch to the SVR, which will probably be a lower rate than you are currently on. If this is the case try to keep yr payments at the same level they're at currently, enabling you to reduce the mortgage debt.........However, don't worry just be prudent, many people in the same situation..........

cazb90904

im on 7.4% with birmingham midshires i owe 120k on the morgage part house worth 130ish and 23k on loan bit we were thinking of selling and moving the morgage with us but they won't do that anymore you have to take out a new morgage and as you can see i owe 150k on a house worth 130k Ive droped a right clanger haven't I

feisty1

Well, it probably appeared to be the right thing at the time.......No point in looking back, as I said many in the same circumstances, just try and reduce yr liabilities.........