End of fixed mortgage & Negative Equity

dan1982_2

Hi All just looking for some adivce regarding the below:

I was a first time buyer just over 2 years ago and took out a 100% 3yr fixed mortgage. I understand that whe my current fixed rate end this october i will go onto the lenders Standard Variable Rate. My house is also probably worth around 10k less that what i paid for it.

I was wondering if you could answer the following:

1) Will my lender offer me a chance for a new "deal" ie fixed rate again or am i stuck on the SVR?

2) If i wanted to move house and buy jointly with my partner what are my options due to the negative equity? A) Can I sell and give the lender the 10k to make up the difference? Can i borrow more to aquire a new house even though i am in negative equity?

3) Can i shop around for a new deal from another lender even though i am in negative equity? I am assuming not!

So in summary, i have a house with a morgage 10k over the value of what i initial paid for it? Am i stuck with my current lender and this house?

It feels like i may be up s**t creek and stuck with this house until I can sell the house for the value of what my morgage is worth or am i totally misunderstanding the situation?

Any help would be much appreciated.

Robert_Sterling_3

I think that you have got the situation sussed.

dan1982_2

If anyone lese can expand on each point it would be appreciated. Also does anyone know what Natwest's current SVR is?

puddy

well i would think that by october the svr will probably be ok, the banks svr will have come down by then. you may even be able to put some extra aside to get the equity down

silvercar

1) possibly , depends on the lender.

2)A) Yes - if you have the money.
You can borrow more if your income can justify it. How much the lender will give you will depend on its current lending criteria. Most lenders are offering products at 90% LTV. That means finding enough cash so that you only need to borrow 90% of the new properties' value ie finding the money to clear any negative equity and finding a 10% deposit.

3) No lender is taking on mortgage at over 100% at present, so the answer is no unless you have money to reduce the mortgage required to less than 90% of current value.