Ridiculous situation!!

Mr_Angryman

My wife and I bought our house two years ago at the top of the market. At the time, we had various loans and had less money coming in than we do now. We ported our interest only mortgage from our previous property to avoid a hefty redemption charge. We put our 15% deposit into the new property. The plan was to get onto a repayment mortgage as soon as the redemption charge period ran out.

Well here we are two years on. We've paid everthing off. We earn more than we did back then. We're in as-secure-as-you-can-get jobs considering the current economic climate. We want to borrow 3 x joint income. We've been paying our interest only mortgage at 6.45% no problem.

Well now we 're ready to start reducing our mortgage. Can we get one? You must be joking. Rates have never been lower but because our Loan to Value has gone up the brokers say " You'll have to take a loan for the deposit and pay along side you mortgage." Or " Why not get your parents to remortgage and lend you the deposit?"

The fact is that we've never been in a better position to pay the bank. I don't care if our house is worth 5 or 10 grand less than we paid for it. We bought it to live in yet we can't get a mortgage.

Is anyone else in a similar situation and if so what have you done about it? It's not the end of the world compared to some peoples situation but it's going to cost us when interest rates rocket.

Let me know your thoughts please.

leicsmark

Yes. Our combined income has more than doubled in two years yet no one will touch us because we had a 93% mortgage in 2007. I'm overpaying by £400 a month, (stuck on a 5.34% SVR) and annoyed about the monthly cost of interest which takes a huge proportion of my take home pay.

Can't really suggest anything i'm afraid, other than taking comfort from the fact you're not alone.

celler

Can you not overpay,therefore lowering what you owe at least.This may have to be a one of payment once a year .But at least this will lower the debt.

opinions4u

Mr_Angryman wrote: »

My wife and I bought our house two years ago at the top of the market. At the time, we had various loans and had less money coming in than we do now. We ported our interest only mortgage from our previous property to avoid a hefty redemption charge. We put our 15% deposit into the new property. The plan was to get onto a repayment mortgage as soon as the redemption charge period ran out.

A reasonable plan at the time. The financial world has changed though.

Well now we 're ready to start reducing our mortgage. Can we get one? You must be joking. Rates have never been lower but because our Loan to Value has gone up the brokers say " You'll have to take a loan for the deposit and pay along side you mortgage."

These brokers are the ones to avoid like the plague.

The fact is that we've never been in a better position to pay the bank. I don't care if our house is worth 5 or 10 grand less than we paid for it. We bought it to live in yet we can't get a mortgage.

But if the bank has to repossess your house they won't get their money back from it, so, understandably, they won't lend.

Is anyone else in a similar situation and if so what have you done about it? It's not the end of the world compared to some peoples situation but it's going to cost us when interest rates rocket.

They sit tight on a lender's SVR and overpay.

Who is your lender and what is their SVR?

This may be a great opportunity to reduce your mortgage debt. That could give you access to remortgage deals sooner than you think if you're disciplined about it.

I suspect rates will remain low for longer than many think (not saying the won't rise, they just won't rise too much). Make the most of it while you can, even if you are restricted with your lack of remortgage choices.

Mr_Angryman

Thanks for the reply. Don't know about you but I feel that the media seem ignore people like us when they talk about the house price crash. And the banks don't care. Why should they though? We only bailed them out and will be paying for it for a generation or so!! Well good luck and let's not get too angry eh!!

Mr_Angryman

Sorry. Two more replys while typing the last one. Overpaying. Good advice. We were offered that option. I suppose it's better than saving the cash in a low interest account. Thanks again celler and op4u.

maninthestreet

So who is your lender, and what is their current SVR?

getmore4less

Mr_Angryman wrote: »

The fact is that we've never been in a better position to pay the bank. I don't care if our house is worth 5 or 10 grand less than we paid for it. We bought it to live in yet we can't get a mortgage.

You have a mortgage what you mean is you can't get a new mortgage.

What is the deal you currently have?

ILW

Bottom line is you are looking for close on 100% mortgage. They aint around anymore and if you do get one the interest rates will probably be much higher than your current deal.