Penalised re mortgage renewal and what to do

Nurse_Liz

Thanks to everyone that replied. This is the first time I have used this so I'm probably not quite doing things correctly! Ok so the Halifax won't penalise me on the valuation (several people warned me they would, shouldn't have listened). Yes I can revert to SVR and by doing so the repayments go up by £330 a month, because the previous deal was a base rate tracker (.5 above), which seems like it was a very good one. Wish it didn't go up so much but can't see what else can be done...

Original thread: My mortgage renewal is due soon. However due to the current economic climate it would appear that my property has devalued somewhat since that last renewal 3 years ago. As a result the loan to value equation is now greater than 75%, and hence I won't qualify for the better deals and offers, and most importantly the repayments will end up quite a bit more. I have an impeccable record (with the Halifax) and they can clearly see for themselves what the situation is, and as I am struggling like everyone else at this moment in time I need a good deal, and not to be penalised and end up worse off. Is this the same for everyone else and is there anything that can be done? To be fair I haven't talked to the Halifax yet, I am trying to find out a bit more first of all. I know I could go elsewhere but it would be so much easier to stay where I am and just negotiate a decent renewal.

My only other idea (noting the main aim is to reduce my monthly outlay) is to put forward a modest pension from RBS to repay a chunk of the mortgage on retirement and hence for that part apply for an interest only mortgage, on renewal. But then will the Halifax let me take that "pension" chunk of mortgage out of the property loan to value equation so that I then fall under the 75% requirement for the residual (and bigger) part of the mortgage? If that makes sense?

Again, as with my pension thread, I would appreciate any advice whatsoever, I am considering various options right now. Thanks.

getmore4less

You don't have to remortgage,

What is the follow on rate on the current deal?


Forget the pension promise they won't be interested.

Nurse_Liz

I will check and find out re the follow on rate, thanks.

Ok so the pension thing isn't worth using, that's a shame. But then if necessary I could maybe swap that chunk to interest only repayment which would reduce my monthly repayments...?

maninthestreet

Why don't you post details of your current mortgage deal and outstanding mortgage? When did you buy the property, what did you pay for it, and how much longer does the mortgage have to run before it must be repaid?
No one can advise you without this basic information

Dick_here

Nurse_Liz wrote: »

My mortgage renewal is due soon. However due to the current economic climate it would appear that my property has devalued somewhat since that last renewal 3 years ago. As a result the loan to value equation is now greater than 75%, and hence I won't qualify for the better deals and offers, and most importantly the repayments will end up quite a bit more.

Do nothing, you'll end up on the current SVR and you'll be paying less, not more.

payless

!!!!!!_here wrote: »

Do nothing, you'll end up on the current SVR and you'll be paying less, not more.

or maybe not .. I've got a few people coming off a tracker.. currently paying base less 0.51%

happybroker

Halifax have an excellent retentions policy and will use the valuation figure from when you switched to them 3 years ago. If you used a broker then speak to them and they will very easily be able to go through your options with you and then compare the Halifax offer with the rest of the market.

If not, speak to the Halifax and then do your research.

SandC

Well I used to get 'penalised' by not being offered the best deals because the amount I was borrowing was not considered worth their while (ie. good deals never offered to anyone borrowing less than around £50k). I just had to deal with it. Now, however, because I have a high LTV I am looked upon favourably at last as they are now being nice to the 'safe' borrowers like me. Yay, for once!

Why don't you go on the SVR for a while, is that going to be significantly more than you are paying now? If it is then you would never find a comparable 'deal' anyway right now even if you did have 75%.

payless

happybroker wrote: »

Halifax .......and will use the valuation figure from when you switched to them 3 years ago. ..

adjusted for movement in the index those 3 yrs though

Dick_here

payless wrote: »

or maybe not .. I've got a few people coming off a tracker.. currently paying base less 0.51%

Not people who took out their current deal only 3 years ago, I doubt.

payless

!!!!!!_here wrote: »

Not people who took out their current deal only 3 years ago, I doubt.

No only 2 yrs ago !!!

( 3 yrs ago - ending early 2009 I got base less 0.76% )