End of fixed rate..95%LTV plus attached Loan

ClareT

Hiya, I have a 95% LTV Alliance and Leicester Plus Mortgage (with the other 5% being a 25K loan) that is coming to the end of the 2 year fixed term.. I'd really like to re-arrange to get another fixed term deal as I need to know the same money is going out each month as money is very tight... is there anywhere offering such deals anymore or am I gonna be forced to go onto the variable rate and wait for the market to change???
Have scoured the boards..but seems no-one else is in the same boat... it's this attached laon that is causing me the hassle I think... (and the fact it's 95%LTV and not lower than that!)

Cheers for any advise..

beecher

As property prices have fallen in the last 2 years you're most likely in negative equity so won't be able to get a deal elsewhere. Phone up A&L and see if they will offer you anything. Other than that, you're on whatever your deal automatically goes on to, ie SVR or tracker. If money is tight now, you need to plan regarding how you will pay the mortgage when rates go up. Is renting a room out/downsizing an option? Otherwise the Debt Free Wannabee forums may be able to give you advice on cutting back on bills.

_Andy_

The attached loan is almost not relevant - the 95% LTV (or probably more as you may well have little or no equity) is.
As beecher rightly said, you need to approach your existing lender to see what they may be able to offer you.

ClareT

Since we bought the place (which we got for a knock down bargain)..we have built an extension..renovated a lot of it..and same houses in worse condition are still selling local to us for 40K more than we originally bought it for..so hoping no negative equity!
A&L have offered us to go onto the variable rate of B of Eng base rate plus 2.5% (we're currently on fixed of 6.85%)

neas

be amased if youve survived un-negative equitied :P.

The mortgage guy might value it 5-10% lower than what they selling for.. also if 5% is 25k then 40k puts you on a 7% rise.

So maybe just maybe your equity is 12% at a push... most likley its near 5 to 0% (if you lucky). I'd get it valued to check you could be a lucky bunny.

ClareT

It's all relative I suppose isn't it..Well we want to live in it for a long time so as long as we can managed the payments that's the main thing.. if i go onto the variable rate can I then organise a fixed rate later on down the line??

Thanks you're all being a great!!:T

beecher

Are A&L offering you another deal, or is that what the deal goes onto automatically? Have you asked if they'll give you a new fixed rate, since that's what you seem to want? You could perhaps stay on the SVR for a few months to take advantage of it and book a fixed rate to go onto in say November? While you're on the phone to them, ask them what they value your property at.

ClareT

It was just what it'd revert to.. thanks..will take your advise and see what they say..can't hurt can it! Have got until mid October to sort it out.