SPML 2 Year Fixed Deal Coming to an End !

bgqs

Nearly two years ago, we took out a 2 year fixed mortgage from SPML. It was a 95% interest only mortgage.

The market value of our house then was approx £162k. However, we bought it privately from the seller for £152,750.00.

The amount of money borrowed from SPML was £148,750.00 approx.

Our fixed rate mortgage ends in Aug 09 and after speaking with them (Capstone) found out that they are not offering remortgages because of SPML's status and are purely managing the existing book.

So, my options are limited...I think they are:

a) I stay on the Libor tracked rate (currently 6.99%) which is above my fixed rate of 6.54% thus costing more money each month.

b) Try to find a new remortgage

What is the best way to go and do 95% mortgages exist any more ?

bgqs

Can anyone give me some advice on this matter ?

beaujolais-nouveau

bgqs wrote: »

Can anyone give me some advice on this matter ?

I think that the reason you are not getting a response is that SPML/Capstone mortgages are currently in a fire sale, where PwC (who are tying up Lehman's affairs after the bank collapse) will be lucky to get 50p in the £ for the mortgages. So no one knows what will happen in the next few months.

There are not many - if any - 95 per cent mortgages available now.

I, too, have a SPML/Capstone mortgage, fixed rate ending in August 2009. The Loan to Value is something like 33 per cent, even at today's prices, but I still don't know what arrangements to put in place for the end of the fixed rate period.

beecher

You're very likely to be in negative equity now and unable to remortgage elsewhere. Looks like you're stuck on the LIBOR until you can get your Loan to Value ratio down to under 90%.

SteveStone

[quote=bgqs;18991547a)_I_stay_on_the_Libor_tracked_rate_(currently_6.99%)_which_is_above_my_fixed_rate_of_6.54%_thus_costing_more_money_each_month.[/quote]

Where are you getting this figure from? the libor rate was set at 3.91% in Dec, is your deal for 3.08% + libor at the end of your fixed term?

The libor rate will be reset for Apr/May/June in the first week of March, should be around the 2% mark

savi

Hi
I to have a SPML fixed rate mortgage which runs out in April 09, i was contacted last night (and last week by post) by woman from integral mortgage solutions ........has anybody heard of them? my mortgage was orginally done through phoenix mortgage brokers.... they no longer exist!
Have fixed rate of 5.59% any ideas who to try next? ( waiting to hear what this women has to offer as well(

bgqs

Are they any 95% remortgages available on the market yet for non-existing customers ?

happybroker

there aren't I'm afraid. I guess there is a good reason why you ended up with SPML in the first place and, if there is, then you would probably need to be looking at much lower loan to values anyway. Sorry

bgqs

The reason I ended up with SPML was because the original broker who placed us 2 years ago was incompetent and was not whole of market. I was naive when I took this mortgage out.

Since then all of my mortgage payments have been made on time and I have since secured two loans which have nearly been repaid in full. I have a mobile phone and a credit card with a £3k limit on it so I would say my credit record is fine.

happybroker

sorry to hear about that bgqs, I have seen a few people that this has happened to, thankfully many of "those" types of brokers are no longer with us.

Conrad

90% is max, but the rates are above 6%, and no interest only is likely to be allowed.

85% will give you options under 6% rates.