query about remortgaging

misselvis

Hello folks
thought I would enter the wise world of MSE. I think I know the answer but thought I would put up my problem for your perusal. I have a mortgage of £184k 6.9% apr with DB mortgages which is coming to an end in august. have spoken to 2 broker including L&C and my LTV is around 95% so have been told that it is highly unlikely that I will be able to remortgage. have spoken to DB mortages and they will revert my mortgage to the SVR rate of 2.5% above the base rate and my mortgage with be about £480 my current payment is £1070 I am thinking that I can over the difference as I can currently afford it or at least pay £400 towards the the capital and then look at the situation in January when property prices might have risen. Am not looking to move on anywhere soon and my sister rents a room so am in a really lucky position. am really working hard on becoming DFW by next year so this could actually work in my favour. I am concerned though that as prices have dropped they will obviously rise eventually and I don't want to miss out.

thanks for reading/ listening to my ramblings. any advice will be greatly appreciated

nw_man

Yes, overpay if possible. You wont get any decent deals at 95% LTV.

Of course I say overpay your mortgage without fully understanding what other debt you may or may not have and what interest rates they may be at.

Just dont waste the extra money !!

misselvis

thanks for the wise words folks- have spoken to a mortgage broker and done my own research and like a majority of people won't be able to find a mortgage at a 95% LTV my last fixed rate mortgage will be on 27th August 2009 and from that point I will be transferred to DB's SVR and my payments will be about £500. I can manage payments between £900-1000 so will use that to make overpayments. I am also snowballing other debts at the mo and hope to finish all those payments by may 2010 so may have to continue with this arrangement till June next year and hope that the interest rates don't go up too much although this is an inevitability. i am considering joining the MFW newbie mortgage overpayments challenge to provide me with some momentum/ inspiration for the times when I am naughty like today (for more details refer to my debt free board thread- sick and spending for further details).

any further advice would be greatfully appreciated