100% LTV Deal Expires with Mortgage Express - Any hope?

KingOfClubs

Newbie here, thanks for clicking into this topic and for making such a great forum.

My 3 year fixed rate 100% LTV mortgage with Mortgage Express on a 150K property has just come to an end. Being taken over by B&B, they don't have any new deals so it's on a variable rate now.

It was 5.49%, now substantially lower but obviously that won't last.

My best guess of the property value is that it is slightly up still as we're in a good area within the M25. It was up 30K, now back at the original 150K at worst and I doubt it'll drop below what I borrowed.

Now as a director (employee at the time), my on-paper wage has dropped and from what I read, my shares aren't substantial enough for lenders to take risk on (not close to a majority share). The company has great accounts but is only really 2 years old.

With 100% borrowing all but disappeared and Mortgage Express not having any new deals, it seems from all angles I'm stuffed. All new deals seem to do 70% at best and I don't have enough cash to cover the difference.

With my other half moved in now (single at the time), we do get a double income and my partner could even cover the LTV gap in cash but I much prefer to keep the property in my name only.

I doubt that they'd accept I can pay the monthly fees based on my pay slips alone so it feels like a bum deal now.

Is there any way, based on the above, that I could possibly get back on a fixed deal at around 5% ish? Or do I have to ride it out, hoping the variable rate won't skyrocket? Combined, we can certainly afford it to go as high as 7 or 8% but we may want to move and rent it out, opting for a secure, steady cash flow instead of a rollercoaster.

Would appreciate your insights, thanks.

unite79

Are you sure you go onto Variable Rate, most M Express deals go onto a Base rate tracker -

Inanswer to your question, no way you can get on a fixed without reducing the LTV.

_Andy_

Your income isn't relevant whilst the LTV is so hight.

KingOfClubs

AFAIK, it's variable rate, 2.9ish last month. They offer to switch to repayment, or just to overpay. It's interest only by the way, should have mentioned it earlier.


Whether variable or tracker, I'd prefer fixed right now but realise it's not looking good.

Fliss_M

Without putting the extra money in to get 75% LTV you are not going to get a desent fixed rate. You could get a fixed rate at 10% LTV, but it wouldnt be nice and may be better to stick with what your on in the hope house prices rise when the BOE rate rises.

KingOfClubs

Thanks for all of your quick replies. Sounds like a forced toughing it out coming up. At least my monthly mortgage costs have dropped some 60%. I'll put the difference aside for when it shoots up.

Noticed the European bank lowered their rate today, any chance of the BoE doing the same too?

Fliss_M

KingOfClubs wrote: »

Thanks for all of your quick replies. Sounds like a forced toughing it out coming up. At least my monthly mortgage costs have dropped some 60%. I'll put the difference aside for when it shoots up.

Noticed the European bank lowered their rate today, any chance of the BoE doing the same too?

You could alway over pay? That will help when the rates do go up

And with BoE already at 0.5% what do you think the chances of 0% are when it will do no good and cause a whole shed load of problems

KingOfClubs

Stranger things have happened.

I was planning to use the difference I gain now to pay off a few smaller things like overdrafts, parents' loan, bit of home improvement etc. before using it to reduce
the actual mortgage. May start doing that after the summer.

Fliss_M

KingOfClubs wrote: »

Stranger things have happened.

I was planning to use the difference I gain now to pay off a few smaller things like overdrafts, parents' loan, bit of home improvement etc. before using it to reduce
the actual mortgage. May start doing that after the summer.

Very true.

Am with you there tho, I should be using my extra (0.99% life tracker) to overpay as I am in neg equity, but credit card debt comes first (which as you can see, theres a fairly hefty chunk of.)