Remortgage - what should we do?

phleeps

Hi,

Our fixed rate mortgage (5.28%) is due to expire at the end of March. We will revert to the Nationwide Base Mortgage Rate (2% or so above base rate). Given that interest rates are likely to rise this year we are keen to remortgage to a fixed rate or perhaps the Nationwide's Switch & Fix.

The only problem is pretty much every mortgage out there needs at least a 5% deposit, which we do not have (our budget is VERY tight and doesn't leave alot of room for saving). The other problem is we are in negative equity by about £10,000 or so.

I know this sounds like a hopeless request, but does anyone know what options might be open to us - if any? Any advice would be great.:embarasse

(We live in NI, by the way)

Thanks.

beecher2

As you're in negative equity, you'll be unable to remortgage - you need an LTV of 90% at the very most. You could phone Nationwide and ask if there are any deals they're willing to offer you, but chances are there won't be.

All you can really do is overpay as much as possible while you're on the SVR. If you go on the debt free wannabee forum you might be able to get help on how to save as much as possible from your household budget in order to fling everything you have at the mortgage.

opinions4u

1) Go on to Nationwide's SVR.
2) Pretend the rate is still 5.28% and overpay the difference.
3) Watch your debt fall faster.
4) Keep your fingers crossed that house prices will continue to rise a little.
5) Then find a fix to remortgage on to.

It will all take time, but I doubt you will see the BofE rate rise above 3% this year.