What can I expect when my current mortgage expires?

TheGreenMan

Hello all,

I wonder if someone could offer a bit of advice and fortune telling!?
My situation has somewhat changed since securing a deal & purchase so here goes....

We bought a property from a family member at a reduced price in Feb 2007.
The value was approx. 10% higher than our purchase price. We have since totally refurbished hopefully adding a bit more value....it was a wreck.
The mortgage was 2 year fixed at 4.75% which seemed prudent at the time.
We are now 9 months from expiration and this is how we stand:
I left employment 6 months ago and became self employed and so far in the 6 months I have earned 80% of what I would have, had I stayed on.
Also, my partner accepted "voluntary redundancy" a couple of months ago and is yet to find other employ.

Can someone please let me know what we are in for in our current situation?

I had a vague idea of somehow releasing some value when re-mortgaging to deposit on another place...is that possible?

Any advice would be greatly appreciated!

Many thanks.

G_M

You'll need to get the property re-valued by the bank (or a new bank) and see if there is any spare equity in it.
Going to a new bank will be tough though given that your earnings have dropped.

Doozergirl

Getting a new mortgage may be an issue at the moment if your earnings are down.

However, it's possible that the SVR of your existing lender is lower than you are currently paying. Call them and ask them how they calculate their SVR.

_Andy_

Based on what you've said you're not going to be able to change lenders or raise more money, due to the employment situation.