Remortaging due to nationalisation

dawniemc

Help, urgently need advice on remortgaging. We have a mortage with Bradford and Bingley, fixed rate of 5.69 until end of this year. Currently only had mortgage for 18 months. Through no fault of our own we are being encouraged by B & B to remortgage however as we have only been paying the mortgage a short time we would have to have around about a 93% remortgage (house worth 134,000 redemption amount 125,000) which brokers do not seem to be offering at the moment. This means, again, through no fault of our own we are stuck and not able to take advantage of the lower fixed rate. Anyone else having the same problem?

opinions4u

dawniemc wrote: »

Help, urgently need advice on remortgaging. We have a mortage with Bradford and Bingley, fixed rate of 5.69 until end of this year. Currently only had mortgage for 18 months. Through no fault of our own we are being encouraged by B & B to remortgage however as we have only been paying the mortgage a short time we would have to have around about a 93% remortgage (house worth 134,000 redemption amount 125,000) which brokers do not seem to be offering at the moment. This means, again, through no fault of our own we are stuck and not able to take advantage of the lower fixed rate. Anyone else having the same problem?

I assume when you say "encouraged to remortgage" B&B are waiving their redemption penalties.

In normal circumstances this wouldn't happen, so when you took out the mortgage you didn't have any intention of remortgaging in May 2009. You would have been "stuck" anyway.

The reason you are "stuck" and will also be "stuck" when the fixed rate comes to an end will be that your loan is more than 90% of the value of the property you live in.

Your only way out is to reduce the amount you owe. Save it up, be nice to Grandma, or whatever.

You are not on your own in this situation. It is quite common.

By the way, it's not the brokers who offer the mortgage deals, it's the mortgage lenders. The brokers match your circumstances to what best fits your needs. Nothing at this point in time does.

_Andy_

You don't have to change lenders.
If you owe more than 90% you're going to have to stay as you are anyway.
No need to do anything yet in any case as your fixed has some time until it ends.
At that point you may very well have to stay on their SVR.

dunstonh

Through no fault of our own we are being encouraged by B & B to remortgage

You are being given an incentive but you are not being told you have to go.

This means, again, through no fault of our own we are stuck and not able to take advantage of the lower fixed rate.

Its nothing to do with fault. Rates go up and rates go down. You bought a fixed rate to give you certainty of payment and that is what you have. The situation with B&B is no different to any other lender. If you were with Nationwide, for example, they wouldnt let you switch deals in the middle of a deal.

dawniemc

Thanks everyone for advice