tb

bealeyt

I took out a 2 year fixed mortgage with Bradford and Bingley who have informed me that when my fix is up in June 2010 they will no longer be providing mortgages. So basically myself and my partner will have to re-morgage when June comes. Problem is we took out a 100% mortgage and our rate is currently 5.49%. We have shopped around a little and found that we either can't get another deal at all, or we can but interest will be around the 6.5%/7% mark which will increase our monthly payments horrendously. We do not have any surplus cash for a deposit unfortunately. Any ideas?

Joe_Bloggs

What was the term of the mortgage. This is the time that you agreed to pay all of the money back. Clearly this was not two years. Your Bradford and Bingley interest rate rate will follow on to another rate that may have been mentioned in your documentation. Find the documentation and phone up to clarify matters.
Perhaps other Bradford and Bingley mortgagees can comment on the situation.
J_B.

_Andy_

You don't have to change lenders (indeed you won't be able to) - you will just revert to the SVR

bealeyt

Thank you Joe Bloggs and Andy for this info. We won't be able to revert to the Bradford's SVR because they will no longer be offering mortgages. Basically they have written to us to tell us that when our 2 year fix ends we have got to go elsewhere. Would be good normally to be able to shop around after fix ends, but in our case we are only paying 5.49% interest at mo. Having shopped around as mentioned, we either can't get another mortgage or have got to take one out with something like 6/7% interest rate! as it is a 100% mortgage. Do you know of any mortgage providers who are offering mortgages with reasonable rates for 100% mortgages? This is what I really need to find in time for June.

bealeyt

Thank you Joe Bloggs and Andy for your replies

benjo

Im not absolutely sure you have understood them, I think they mean they are not offering any more mortgages (ie no new deals), but since you already have a mortgage - for example 25 years, fixed for the first two years and 23 years on the SVR then the above posters are correct. Your fix ends and you either find a new deal with another lender or revert to BB svr - they are not pulling out of the deal you already have.

At least thats what I understand, but worth ringing them to find out. If they want you to go away they might be prepared to offer you some money to do so.... some lenders have done this recently.

Wutang_2

Definitely ring them and ask what happens at the end of the fixed rate - or even,ask what incentives they are prepared to offer for you to move elsewhere. But if you are in negatiquity (my new word) then you won't be able to remortgage and so B&B will have a revert-to rate.

Caz3121

def try and stay with them - you are not going to get a 100% mortgage anywhere - which will leave you having to come up with a lump sum. SVR will be the way to go until you have enough equity to shop around for a deal

bealeyt

Ok, everyone. Thanks very much for your replies. I am much clearer now with what to do.
thanks again
tb:T