Mortgage advice

stoveman

hey guys and girls,

Just want to get some advice on a few issues i have regarding remortgaging.

Took out our first mortgage back in 2005. I have a few defaults so found it hard, however our mortgage advisor managed to get us with First National with only a £5000 deposit on a fixed rate for 2 years on a 25 year mortgage. the only draw back was the base rate was 4.5% at the time and paid 2.64% above the bank of england base rate.

Anyways that deal came to an end and we couldnt get thing better because we were on interest only and i still had the defaults so we switched to variable rate which as a mantter of fact is great now with the rates soo low.

We were paying £706 per month interest only on a £111,036 mortgage (bought the house for £115,000)

we are now paying around £350 due to the rates cut. I phoned First National and asked to switch to repayments so we could try and get some money off the mortgage to get the LTV down.

I applied and they said that the case was accepted and that they would write to me to let me know when it took affect. This was a month ago and I dont think they have even taken the £100 admin fee. I think they are stalling cos they dont want me to switch cos they will make lesss money off of me.

Is there anything I can do to force them into actioning the change? I just think they want me to stay on interest only.

My defaults have now dropped off and now have a clean record so was thinking of moving away at from them soon but ive looked around and my rate seems to be better than the banks as the minute im paying 2.69% which is why i think they dont want me to change over.

Im assuming im better off staying put at the minute and when the rates rise in a few years or when ever they do then ill switch to a better lender but at the miniute I think i get a better deal that someone who is not on a subprime mortgage.

any advice on this?

regards,

Dean

beecher

Phone them to ask about the delay.

You're likely to be in negative equity now as your house is probably worth under £100,000 now. If that is the case you're stuck with the rate you're on, so be sure you can afford the payments once base rates start to climb again. You need to overpay significantly to get your LTV down to 90% in order to get a deal elsewhere (subject to your credit file now being good enough).

herbiesjp

As beecher says, your LTV is what will dictate whetehr or not you can leave First National anyway.

What do you think the current property value is?

Bigbird15

Hi

I have a 25 year interest only 0f 24K which ends in 3 years plus another interest only of 11k which ends in 15 years time plus a repayment mortgage of 9,0000. At the moment my Mortgage combined is £97 but I am paying £300. what part of the mortgage should I pay off first the interest only capital or the repayment. I have been paying for the last 6 months so i have spoken to my building society and thy said they will calculate the overpayments and take it off the 24k. Is this what I should do.