Re-mortgage advice please

jimmyscot

Hi,

This may be a simple question but seeing this is the first time of remortgaging I wanted to ask anyway.

I will have to remortgage in Aug next year due to my 3 year fixed rate running out. When I took out the mortgage just over two years ago it was at 110% of the house value (due to the market being quite active).

My question is, how does it work when I come to remortgage especially with the housing market the way it is at the moment. The valuation of the house won't have gone up and I won't have paid of that much as in the first few years it is mostly interest that comes off. Mortgage companies at the moment will probably be reluctant to give a mortgage for 100% let alone higher so will I struggle to re-mortgage or how does it work?

Thanks for the help in advance.

jackieblack

You don't HAVE to re-mortgage when the fixed rate runs out, the mortgage will continue for the remaining term, but will probably (depending on the t&c of the fixed rate) switch to the variable rate. Just before your fixed rate ends you should contact your lender to see if there is a better rate that you can switch to, that way you won't have the hassle & expense of re-mortgaging.

_Andy_

Hi

With no equity you won't be able to change lenders so will need to see what rates your current lender can offer.

beecher2

You won't be able to remortgage elsewhere unless your LTV is 90% or less as it isn't so much the case that banks are 'reluctant' to give a mortgage for 100% or more - they just don't full stop.

Contact your lender in late April and see what they say - they may offer you a new deal or you may be on the SVR. In the meantime, overpay what you can and try to re-arrange your finances as much as possible to allow you to pay down your debt.

jimmyscot

Thanks for the quick response, and clearing up my worry. I will speak to them later in the year and see what they can offer me, but by the time July comes round who knows what things will be like!!

Thanks again for the advice.

SandC

Remember you will still have a mortgage - they don't demand the money back after a period of a 'deal' that you may have made is up. Remortgaging has become so common place that people forget that you don't have to find another deal. With SVR there are usually no ties so you can overpay too.

jimmyscot

Thanks,

I did understand that after my three years I would still have a mortgage and it would revert back to the SVR but from what I can remember the SVR is ridiculously high and isn't really an option, but that may have changed since I took the mortage out!?!

Joe_Bloggs

@Jimmyscot. Try and find out what your mortgage rate will become from the documents relating to your mortgage. If you know that you will fall onto SVR then find out what it is at present. If you name your lender then others can tell you what the SVR is.
J_B.