Future Mortgages (CITI financial) no longer offering new mortgages? question.........

PrincessJR

Hi,

We have had our mortgage through Future Mortgages since Nov 07. We had a 3 year fixed rate which obviously ends next Nov.

I have read on their website that Future are no longer offering new mortgages as CITI financial have decided to focus their attentions on the CITI and EGG brands.

Will this mean that next year, they will not offer us a new deal to stay with them?

If so, how do we go about finding a new mortgage lender?

I am a little confused about how much we would need to borrow. Our original mortgage was for £152000 (we had £8k deposit). When we received our last statement is says the total balance is now £154k???

Does this mean we would need to borrow more than our house is worth? i.e. over 100%? - there would be no chance in the current climate!

Please help.........

_Andy_

Sounds like you either have minimal or no equity. Sadly this rules out moving lenders.

happybroker

you will go onto a variable rate when your current deal ends and Future will let you know what your payments will be going to nearer the time.

My guess is that your credit history may have meant you going to Future in the first place and if this is the case you are right that getting a high loan to value mortgage will be impossible.

If you check your mortgage offer you will probably find that the original mortgage was for more than £152k once all the fees had been added, if this is repayment then that balance will be slowly coming down, if it's interest only it won't so you need to look at was of overpaying etc or you could be stuck for some considerable time.

PrincessJR

Thanks for your quick replies!

yes it was due to my credit rating (poor husbands is great but mine is poor). We got 6.6% fixed for 3 years which although seems pretty high now, was ideal for us as it was our first home, we could afford it and knew where we stood each month.

happybroker - of course! the fees etc would have been added to the original amount. That makes sense now. We are making repayments of £986, and interest is £850 so only just over £100 per month actually comes of the balance - sickening!!!

As long as Future wont 'dump' us at the end of the fixed term due to them no longer offering mortgages, Im fine. If they DO...we are in trouble :-(

happybroker

they can't dump you so don't worry, you have a contract with them.

_Andy_

They won't 'dump' you, it will just carry on as per the mortgage offer.
Overpay as and when you can if possible.

PrincessJR

Is there an online tool anywhere, where I could estimate how much to overpay to make an effective 'hole' in the balance?
In reality we could only afford maybe an extra £30 per month, maybe a little more some months.

Is it best to save up and pay a chunk off, or regular smaller payments?

Sorry for so many questions!

happybroker

if you check your offer it should tell you somewhere near the back how much you can overpay by, if you can't then obviously you would need to save up and make a lump sum reduction after the fixed rate ends.

the only calculators I know of show you how much you would save in £s or years over the term....http://www.whatmortgage.co.uk/calculators/fleximortgage.html is as good as any.