LTV Question and remortgaging

dandy27

HI There, Quick Question.

I purchased my house in 2008 for £200,000 and I put down £20,000 and borrowed £180,000. (80% LTV).

My house is probably worth about £180,000 now, due to the slump in prices.

How does this work, if I was to remortgage this year. Would Abbey find me a new rate which is worse than the one I am currently on. Are my options limited, Can I move to another provider.

Just need a little advice, so I understand it a little more.

Thanks

Simon

_Andy_

Hi Simon
With no equity you won't be able to change lenders.
If you ring Abbey they'll let you know what rates may be available.

When_is_the_reset?

Am I being thick or is a £20k deposit on a £200k house 10% so 90% LTV?

VIGILANT22

yes but if the house is valued at 180k and the mortgage is 180k....that equals a 100% mortgage...........ie no equity

dandy27

yes your correct, it is 90% my matchs was never a strong point. but it doesnt change things. Im still at 100% now.
Surely im not the only one in this boat, there must be loads of people.

_Andy_

Yes, there are a lot of people in NE.

When_is_the_reset?

It might be that the Abbey SVR is the best you can get anyway. May even be better than the rate that is coming to an end.

NE is only a problem if you need to move. Just sit tight for a decade or so and the house will eventually go up in value.