Advice on remortgaging required

smorri4

Hey,

Me and my boyfriend are currently on a tracker (0.540%) with halifax (20year). Due to expire Feb 2010 and revert to SVR. We purchased Nov 2007 for 142500 and obviously the house price has reduced - we estimate its value being around £128000 now (despite some serious renovation work). Our outstanding balance is £121000 at present so come Feb 2010 OB will be £117000 ish (providing we continue our payments as usual).

Would this mean by LTV would be around the 90/95% mark?

Would you suggest i am better sticking with SVR until house prices rise again or we increase equity in property?

Or should i be looking at a longer term fix (not that i think there are many our there with high LTV?)

I reckon if the rate increases we can only survive paying out a max of £1000 a month - so rates would have to be at 6-7% for that to happen - anymore then i reckon we'll be in some serious bother.

Any advice is really appreciated!

smorri4

hello anyone out there

dfh

Actually,you may be left with no option but to go to the SVR as not many lenders will touch you unless your LTV is at least 85%.However,if you get a fixed rate that you feel comfortable with,I would be tempted to fix as these low rates will not be around forever.