New (Worried) Member

kezmark

Hello, new member here.

Read the forums for a while and thought i'd join, hoping for some advice...

Me and my girlfriend bought a house back in April 07, and got a 100% repayment mortgage with Northern Rock, with a fixed rate for 5 years. We're now half way through the payment agreement, and after borrowing £111,000 my balance is still £110,000ish!! So this got me thinking about what we're going to do in 2012, and how we'll get another mortgage, as it looks as though we'll struggle to get hold of a 10/15% deposit in 2 years time.

The weirdest thing about it all is that we are now allowed to borrow much more than before, but need a large deposit aswell!

Is there anybody else in a similar position to us, and if so, have they managed to find an alternative solution than to sell up and rent?

I would speak to a mortgage advisor but I dont trust any of them, and once you get in touch with them it's hard to get rid!

Thanks in advance...

sammyjammy

Who knows where we'll be in 30 months time, use this time to overpay as much as you can.

Radiantsoul

You don't have to remortgage at the end of five years. You will find the mortgage will revert to either a tracker or the standard variable rate- depending on the initial mortgage.

Unfortunately the SVR for northern rock is not amazing, currently 4.79%, but that is still probably lower than your tracker.

Your best bet is probably to either make overpayments or save money to build towards another deposit, if you want to remortgage at the end of the fixed period.