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100%/Neg equity re-mortgage??

Hi all,

I am due to re-mortgage in June 2010, so just under 10 months to go, but thought i'd ask in advance to see what ppl think!
We have a 100% mortgage w/Abbey on a house be bought at FTBs valued at 145K. Obviously, due to the slump, we've lost some of the value - approx value now at 130k, alhtough we are in a growth area so we hopefully will claw some of this back before the re-mortgage date.
Basically, I don't know what our chances of the face of things would be to negotiate another fixed, or whether they would decide to switch us to a variable. And is the option of a variable from Abbey a given as we already have a mortgage with them (i.e i assume it would be in their interest to keep us as we have made all the payments, and they would surely risk debt themselves in haveing the debt bought out?) Also, would they take into account our lack of options for shopping around on a potentially neg equity mortgage before offering us either a fixed or variable %? we're currently on a huge yet affordable 7.2, although not a hell of a lot of room for any more %!!

thanks in advance for any advice/opinions!!
...Money spending expert since 1983....

Comments

  • I think the Abbey SVR is about 4% at the moment. When your fixed deal expires you will probably move on to this.

    You are unlikely to get a better deal, so best to stick with this and overpay what you can (suggest you continue to pay same as you are currently paying at 7.2% to help increase deposit for when rates do rise. When you have a decent level of equity, then start looking for a better deal. (thhe deals offering a lower rate than the current Abbey SVR will probably require a minimum 25% deposit.
    MFiT - T2 # 64start date: 1.7.09 MFW end date: 31.10.17
    Start balance: £205,746.51 :eek: Month 18/100..paid 13.50%
    Current balance: £177,977.07 (updated 18.12.10)
    Target 12.12.12: From £194,000 to £140,000:p
    MFI-3 reductions: £16,023/£54,000 achieved (29.67%):j
  • emma.b123
    emma.b123 Posts: 41 Forumite
    Thanks TG - I was expecting this would probably be the the best option, providing the SVR isn't too insane (althou 7.2% is fairly crazy!). Fingers crossed house prices up like suggested!!
    ...Money spending expert since 1983....
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