End of fixed rate and negative equity

devilboy1981

My partner and I got our first mortgage last year with Nationwide at a fixed rate of 5.7%. Our house value was around 219000 and we put a deposit of 30000 down giving us a mortgage of 189000. After doing a search we see the average price of houses in our road is about 180- 190000. When we remortgage next year will we have to put more deposit down? Does the bank look at our house being valued at 189000 and our mortgage being similar and take it as 100% or is it calculated with what we paid?

I am worried that we should be saving for another "deposit" when we renegotiate our mortgage in a years time - but who knows what will happen in a years time?

I hope this is clear. Thanks for your advice in advance.

Trying_to_be_good

In order to qualify for a new deal, you will need to meet the LTV criteria (i.e. increase the equity/deposit in the property).

But in the meantime, you will revert to Nationwide's BMR (their equivalent of a Standard Variable Rate, SVR), which is 3.5% at the moment and will drop to 3% next month.

nesssie1702

When you say that you're doing a search on property prices in your road - what site or sites are you using? Some aren't very accurate.

Plus, you took out your mortgage for £189K, but you'll have been paying that off, so the amount will have decreased (if you've got a repayment mortgage)