Unable to Re-mortgage , what are my options ?????

967stuart

Will try to keep this simple.

Myself and my wife took out a mortgage on our house 2 years ago with a £20000 deposit, shortly after the recession kicked in and we have lost that deposit (lost the value in the house), our fixed mortgage period was up a couple of months ago and we have been on the variable rate (which is working out better at the moment) , however, I don' t like the insecurity of being in 'limbo'.

We have been refused a re-mortgage deal with our current leander, apparently us NOTmissing a payment in 2 years and actually paying slighting more off our mortgage makes us 'High Risk' for some mad reason ...... as well as the market being rubbish.

What are my options ? if the rates go high again this could cripple us so really want to get this sorted, just so frustrating that the banks seem to be doing nothing to help people.

Info if needed -

House price - £214000
paid off £26000 in 2 years of which £21K is interest (approx).

In all we owe about £188000
Our combined wages are about £45k gross.


Any help or advice would be fantastic

Hugbubble

967stuart wrote: »

Will try to keep this simple.



House price - £214000
paid off £26000 in 2 years of which £21K is interest (approx).

In all we owe about £188000

So you've only paid £5k of the capital? Is the price that you paid or the current valuation? Are you getting the £188k from deducting your £26k in payments from £214k? (because if so, I think you'll find you probably owe closer to £209k surely???)

beecher2

It is the current value of the house which is most important - your LTV has to be less than 90% to get a deal. Overpay as much as you can to get down to that level. You'll be high risk because your LTV is too high.

happyrichard

we are in a very similar position.

bought place 4 years ago. we've paid on time for 4 years. now the mortgage company has reduced the valuation of our property below that which estate agents are valuing it at and will therefore not offer us a mortgage as we are above 75% LTV.

should we go to another lender who may value our property higher?

EzeeTiger81

I'm in a similar position:

I bought my house for £144,000 3 years ago, it's now worth approx £126,000 according to zoopla. My current balance is around £142,500.

What can I do?

_Andy_

EzeeTiger81 wrote: »

I'm in a similar position:

I bought my house for £144,000 3 years ago, it's now worth approx £126,000 according to zoopla. My current balance is around £142,500.

What can I do?

Nothing, other than overpay.

967stuart

Sorry for the delay in posting (stuck at work).

Sorry if i wasn't clear, my partner is 'in charge of of the finances so Im not 100% where we are at.

I think it went down like this.

The house cost £214k

We put a £20k deposit down

so we needed a £194k mortgage (we ended up borrowing a little more to cover costs)

We have paid around about £5k - 6k so far leaving us owing around about £188k.

Hopefully thats make more sense ?.

Hugbubble

967stuart wrote: »

Sorry for the delay in posting (stuck at work).

Sorry if i wasn't clear, my partner is 'in charge of of the finances so Im not 100% where we are at.

I think it went down like this.

The house cost £214k

We put a £20k deposit down

so we needed a £194k mortgage (we ended up borrowing a little more to cover costs)

We have paid around about £5k - 6k so far leaving us owing around about £188k.

Hopefully thats make more sense ?.

Gotcha- makes sense. How much is the house worth now?

967stuart

Well the banks claim it worth 170k (they say this because a house a few roads away from us was sold at this) , they did say we can have someone come out and value it at a cost of £300 if we want, Im thinking maybe we should as we have spent a lot on doing up the house (maybe 20k on improvements).

wymondham

967stuart wrote: »

...they did say we can have someone come out and value it at a cost of £300 if we want.

That seems steep - what about getting a local estate agent to do a free valuation first just to see if it's worth going ahead?

967stuart

wymondham wrote: »

That seems steep - what about getting a local estate agent to do a free valuation first just to see if it's worth going ahead?

Yes, I think you might be right, would be worth getting a ball park figure from them first just to see if its anyway near what the banks seem to think.

The real problem we have though is being in 18k in negative equity, at the moment its not a huge issue with regards to our mortgage payment in that we are on the variable rate which is actually cheaper than our previous fixed rate.
I just don't like the idea of being on a rate that could change at any given time, you here stories of the rates going through the roof (I doubt they would just yet, but you never know).