Can someone advise me please

stinky_onions

Hi all
We currently have a mortgage with Britannia BS we originally took out 10 yr fixed rate, it finishes in May this year. they have contacted us asking if we would like to go in and speak to someone about renewing the mortgage, I think we may be in trouble though.
When we originally took it out we were both in full time employment but my partner is out of work at the moment, I am working but only bring home £950.00 a month. We do get tax credits and family allowance and we manage ok.
We also have credit card debts which we didnt have when we first took out the mortgage.
Do we need to declare this when we renew the mortgage?
what happens if they decide not to let us renew the offer?
We owe £31.800 on the property, and it it currently valued at @ £110.000.
I know these may sound like silly questions, but I am worried and confused.
Any answers would be gratefully received.
Thanks.

jw2003

I'm not one of the financial whizzes that post on here but if you're worried I didn't want to leave you there stewing.

When your current rate comes to an end I am sure it just switches the the Standard Variable Rate (svr) so if you can still make these payments then I don't think you actually have to do anything. From what I can see they are not the most competitive deals around but the bank is probably just trying to tie you in again and stop you from going elsewhere

stinky_onions

We ahve never done this before, so just don't know how it all works.
Suppose I should have started researching sooner, but, never did
Oh well, time to learn
Thanks

jw2003

I suppose all the people who bought during the boom and have negative equity will have similar problems because you need equity in lieu of deposit. It doesn't make sense to me so expect a similar thread from me when my fixed rate comes to an end. My only saving grace is that the svr at the minute is lower than the 6.7% rate I got last January before the base rate fell

de1amo

your wage net 950 pounds times 12 is 11400 ----3 times that is more than the 31800 left on the mortgage--i have simular circumstances and have just left my mortgage on svr because it is better than any of the new products the brittania are offering now for me-unless you apply for a new product you are not bound to tell them about any other debt--

getmore4less

Get your paperwork out and have a read to remind you what your deal is.

Interest only or repayment the rates and the full term?
any penalties, extended tie in and the redemption costs.

The main bit you need to find is the follow on rate at the end of the fix, this may be the SVR or might be a tracker rate.

The rate quoted in the docs may be the one that was at the time this will have most likely changed o the curent SVR or 0.5%+X% if a tracker.

This is the starting point for looking at any new options.
You do not have to renew a mortgage you can let this one run till full term

What is the current fixed rate and what are the follow on rate?

What is your current payment

stinky_onions

Thank you
I have been quite worried, thinking they might refuse us and take the mortgage back and all sorts of silly things.
We will try to fix again, but if they dont let us we can still afford the payments so I'll try to stop worrying now