Mortgage renewal

Nurse_Liz

Thanks to everyone that replied yesterday. 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 but 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. My mortgage is £214K, current prop valuation of approx £260K (valuation 3 years ago £285k) over 16 years...Any other ideas? Thanks.

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.

ceminem

You signed up for the deal knowing that it would revert to SVR and the key facts stated what payments would be when the fixed rate expired, I'm guessing the SVR would of been much higher back when you took the deal. So if you felt you could afford it back then, barring any pay cuts, job losses surely you could afford it assuming you realised what the payments would result in on transfer to SVR.

_Andy_

Nurse_Liz wrote: »

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? .

No, whether it is interest only or not does not affect the LTV.

Nurse_Liz

Yes I can afford it, I was hoping for something better! Since the original deal I am now single and funds are not so readily available, that's all. Sounds like I am wasting everyone's time - sorry...

Dick_here

Nurse_Liz wrote: »

Yes I can afford it, I was hoping for something better! Since the original deal I am now single and funds are not so readily available, that's all. Sounds like I am wasting everyone's time - sorry...

But any deals that are available now will not be cheaper than the SVR.

Nurse_Liz

Ok well then at least I know. Thanks !!!!!! and others......