Mortgage nightmare

Utopian

Hi I am new to this forum really trying to get some advice / help.

My situation is the following, after a divorce I remortgaged my home to pay off my ex, In July 2008 my mortgage fixed rate came to an end however my lender at the time, Northern Rock would only give me a variable rate which |could not afford. Stupidly I got a fixed five year term with Lloyds TSB C&G mortgages at 5.99% interest only at £940 per month, a year down the line this is now causing me problems financially albeit I still pay every month! to get out of this mortgage the redemption is a whopping £9500 ! which I do not have. With the current drop in house prices and lenders not lending say more than 75% LTV anything over 80% an the interest goes up to what my rate is, I am caught in a trap my equity is minimal and my mortgage outstanding is £188000 and does not include the redemption of £9500, my current house value according to a drive by valuation is £225000 despite fact houses selling for £250000 (I was given mortgage on basis that my home was worth £275000 in July 2008) all I want to do is get a mortgage at a rate of 4% which will save me money.

C& G are unhelpful they say I can change but have to pay the £9500 up front and the interest rate will barely change and I cannot load it onto the mortgage. (No use to anyone)

Any ideas out there or do I have to grin and bare this for four more years. I had hoped to at least over pay my mortgage at a lower rate had I been able to reduce the monthly amount. I find all this very stressful as effectively I only have 6 working years left after the fixed rate term ends and potentially will have to sell up with minimal equity in my home.

I just want to at least reduce some of the capital.

maninthestreet

Utopian wrote: »

Hi I am new to this forum really trying to get some advice / help.

My situation is the following, after a divorce I remortgaged my home to pay off my ex, In July 2008 my mortgage fixed rate came to an end however my lender at the time, Northern Rock would only give me a variable rate which |could not afford. Stupidly I got a fixed five year term with Lloyds TSB C&G mortgages at 5.99% interest only at £940 per month, a year down the line this is now causing me problems financially albeit I still pay every month! to get out of this mortgage the redemption is a whopping £9500 ! which I do not have. With the current drop in house prices and lenders not lending say more than 75% LTV anything over 80% an the interest goes up to what my rate is, I am caught in a trap my equity is minimal and my mortgage outstanding is £188000 and does not include the redemption of £9500, my current house value according to a drive by valuation is £225000 despite fact houses selling for £250000 (I was given mortgage on basis that my home was worth £275000 in July 2008) all I want to do is get a mortgage at a rate of 4% which will save me money.

C& G are unhelpful they say I can change but have to pay the £9500 up front and the interest rate will barely change and I cannot load it onto the mortgage. (No use to anyone)

Any ideas out there or do I have to grin and bare this for four more years. I had hoped to at least over pay my mortgage at a lower rate had I been able to reduce the monthly amount. I find all this very stressful as effectively I only have 6 working years left after the fixed rate term ends and potentially will have to sell up with minimal equity in my home.

I just want to at least reduce some of the capital.

You need to post your SOA (Statement of Affairs, i.e cash in, cash out, on a monthly basis) so we can make some suggestions.

ALIBOBSY

Your best bet would be to look at your monthly costs and cut them as much as possible (this site has all the tools you need to do that ).
Then try to overpay the mortgage (check your terms and conditions as to how much you can repay without penalty) to bring down the LTV or save like mad in case you need to sell up or the interest rates rise.

good luck
ali x

Mrs_Bumble

Switching to try and obtain a mortgage interest rate of around 4% is just not feasible with those penalties.

As above have a look at your incomings and outgoings and really have a hard look at what you can save money on.

Are you able to take a lodger in to help with costs?