Remortgage Advice Needed Please??

tessy_t

I bought my house in September 2007 for 90k, I put down a £18k deposit. At the time I was earning 20k per annum, I'm now only earning just under 16k as have had to take a part time job. My worry is that when I look to remortgage in September I will in effect be asking to borrow around 90% of the house value which is now around 79 to 83k, and based on my current salary I'm not sure what sort of deal I will be offered or whether I will be accepted at all? I do have a relatively small debt owed on credit cards but I have managed to pay my mortgage for the last 18 months even when my salary was reduced. Should I stay with my current mortgage lender (C&G) and what sort of chance do I have of getting a good deal elsewhere? My current mortgage is a fixed rate of 5.2% ending in September. I would ideally like to lower my mortgage payment each month as I am not earning as much anymore, is this possible?

Thanks for any replies

_Andy_

At 4.5x salary multiple your choices would be hugely limited in terms of moving elsewhere (perhaps two other lenders).
The main issue will be the LTV, i.e. whether it would actually scrape in at 90%.
Worse case is approaching C&G a bit nearer the time to see what they'll offer you.

Robert_Sterling_3

Please reply only to this version of the thread

dimbo61

Hi tess
You need to read the paperwork that came with you mortgage !
What does it say happens to your mortgage after the 2 year fix ends?
Does it go onto the SVR ( I THINK C & G SVR is currently 2.5% !!!! )
Just phone up the mortgage centre at C & G and ask them to put your mind at rest and also ask if they have any deals for you.
If you do go onto the SVR at 2.5% then your monthly mortgage payment is going to drop.
BUT if you ask them to keep your mortgage payment static ( the same as you are paying now ) then you will be overpaying the mortgage each month.
This will help to reduce your debt and increase your LTV ( if only a little ! ) and then if rates do rise you will not notice until the SVR goes over 5%
GOOD LUCK and overpay if you can.

tessy_t

Thank you very much Dimb061, I just checked and you are right! my mortgage rate will continue at the SVR. This is a huge relief to me, so thanks for your reply :-))

dimbo61

Dont forget overpay if you can afford to !
GOOD LUCK TESSY