C&G fixed rate ending but only offer SVMR

garyd

Berkshiregirl wrote: »

If these prove your house is worth more than you paid for it, you may have to get an independent valuation of your property.

I'm not interested in proving it's worth more than I paid. I'm concerned that C&G say I am in negative equity - 95% mortgage now = 127%!

Berkshiregirl wrote: »

You mention it's being let out for £995 a month - have you got your lender's consent for this?

Er, nope. Blimey, when it rains, it pours! Now I feel like I've done something illegal! All I'm trying to do is keep my head above water yet with these last few years it feels like I might just as well let the tide take me under.

If I believed in reincarnation I'd suspect I may have been Atilla The Hun.
Or Adolf Hitler!

Talk about rubbing salt in.

Got a feeling I might need to put by £500 as Mr B might be looming.

Cheers anyway.

_Andy_

Absolutely no need for that last post - why be so defensive?

figgles

garyd wrote: »

I'm not interested in proving it's worth more than I paid. I'm concerned that C&G say I am in negative equity - 95% mortgage now = 127%!

Unless C&G re-value it (which is likely to be at your expense), then they are basically going off the market and what it's done since you purchased, which as has been pointed out it's just gone down.

A quick look at the C&G web site shows only one mortgage at 90% LTV, a couple at 85% and the rest at 75% or less. If you paid 250000 for it in summer 2007 (say q3 for arguments sake), then a GUESS based on the calculator on the nationwide website would show it's worth little over £200000! Yes, your work on the flat may take this up a bit, but surveyors/valuers are valuing down at the moment so it's likely it will be a lot less than the £250000 you paid.

Unless you are in the lucky position of having a significant amount of money to pay some capital off then your only option is to go with the 2.5% rate and saving/paying off capital (if possible without penalty on your current mortgage).

The only other obvious and unhelpful things I can say are that long term it will recover, but it will probably be very long term.

Berkshiregirl

I'm sorry if you took my last post as an attack, it wasn't the intention.

But if you're not living in the property, and are going to remortgage saying it's your primary residence, there can be problems in the future. And if you go down the honest route and say it's a buy to let, you'll be forced to find a larger deposit to get your LTV down to about 75% or less.

Once again apologies, I was just asking a question, not making any accusations.

garyd

_Andy_ wrote: »

Absolutely no need for that last post - why be so defensive?

Hi Andy,

Sorry, not defensive just worried about what's going to happen.

I am in awful debt (like many others, I know) and have been grateful for the low interest rate as it has helped with the debt repayments, slightly.

Don't mean to be rude.

garyd

figgles wrote: »

Unless you are in the lucky position of having a significant amount of money to pay some capital off then your only option is to go with the 2.5% rate and saving/paying off capital (if possible without penalty on your current mortgage).

So no option then! lol Of course, I do appreciate it is still a relatively good deal. Just wanted to fix it (at a higher rate) so that I knew what my outgoings were for a constant period. No surprises!

figgles wrote: »

The only other obvious and unhelpful things I can say are that long term it will recover, but it will probably be very long term.

Yep, just may not have a very long time.
Cheers.

garyd

Berkshiregirl wrote: »

I'm sorry if you took my last post as an attack, it wasn't the intention.

But if you're not living in the property, and are going to remortgage saying it's your primary residence, there can be problems in the future. And if you go down the honest route and say it's a buy to let, you'll be forced to find a larger deposit to get your LTV down to about 75% or less.

Once again apologies, I was just asking a question, not making any accusations.

Apologies for overeacting/misunderstanding.

I take your point. I didn't realise I was doing anything wrong, especially as my current rent for where I'm living is £1700 (family home near school) so I'm certainly not making a profit.

Thank you for your time and consideration.

Conrad

Gary I was a real doomer back in 2004 - 2008, and even sold my B2Ls in 06 / 07, making not much profit.

Now though I'm optimistic prices in the South East will creep up - not every month though.

The funding shortage is a problem but I'm seeing new clients have already adapted and are comming in with bigger deposits, and also new types of mortgage are emmerging such as parental + children joint affairs with C & G and Nationwide.

Uber pessimists underestimate the Human spirit to overcome.

katie_1985

Gary im in a very similar situation i took aout a mortgage in summer 2007 with NR for 154k in brighton. 1 bed flat. since then me and hubby got offered good jobs in channel islands and applied to let it out they origianlly said no as it was a big risk to them as we owed 100 percent but we shoed them proof that our new salaries would be double and jersey is lot less taxable country it showed in fact we would be earning more than if we stayed in brighton and was more likely to dfault by staying in brighton so they allowed us to rent it out. our NR mortgage is 1000 a month and we only get 580 fron the tenants but living in jersey we can afford to pay the 1000 mortgage plus the 580 as an overpayment everymonth. this is reducing the LTV considerably over the years but it will still be not enough when we come to renew our product in sep 2010 we want a fixed deal for stability too but we cant shop around for a new lender as our flat has decreased in value and we now owe more than the flat is worth our only option is to stay with Nr and go on thier SVR my advice is continue to make the payments you make and over pay if you can that really reduces LTv and you could renew a deal in future ps we dont get taxed on property as we dont make anything and wont for a long time good luck

Thrugelmir

garyd wrote: »

I am in awful debt (like many others, I know) and have been grateful for the low interest rate as it has helped with the debt repayments, slightly.

C&G will be aware of your "other" debts. Face up to the situation you are in and tackle it head on. Low interest rates will not be around for ever.