Advice Please

ollie2008uk

Hi all,

My partner & I have a mortgage on our flat. Its only worth (currently) 125k our mortgage is for 121k. When we bought the flat it was worth 150k. I am currently on a Tracker. As I understand it we would not be able to get another mortgage as we dont have enough LTV.

Can anyone who knows about Mortgages advise?

Thanks

Ols

VIGILANT22

You understand correctly......

ollie2008uk

Thanks I thought it was the case!

blueberrypie

ollie2008uk wrote: »

Hi all,

My partner & I have a mortgage on our flat. Its only worth (currently) 125k our mortgage is for 121k. When we bought the flat it was worth 150k. I am currently on a Tracker. As I understand it we would not be able to get another mortgage as we dont have enough LTV.

That's correct. You'd need more equity in your property before a lender would consider your application.

As you're on a tracker, your rate is probably quite low at the minute - in that case, make the most of it. Usually the advice would be to overpay your mortgage as much as possible, to reduce the amount you owe, but with interest rates as low as they are, it might make more sense to save and plan to pay down the mortgage when rates start to rise again. It really depends on your tracker rate and on how much your mortgage allows you to overpay without penalty.