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New at mortgages

Hello!

Our flat was valued at £175k and our mortgage is for £159k at the mo. we have been overpaying to get in down to this amount (we bough at the wrong time, oct 2007 and house price has dropped by 5k, mortgage was originally £164k). Do we have a low enough LTV to get a good fixed rate deal or should we stick with our 4.99% (interest only- but over pay each month). What amount do we have to get our mortgage down to to get a deal thats worth paying the package fee... some of them are over a thousand pounds!

Hope this makes sense, just really struggling to work out what best to do any any advice/ideas whould be VERY greatfully recieved.:o

Comments

  • _Andy_
    _Andy_ Posts: 11,150 Forumite
    When was it valued and who by?
    You probably won't find a lender happy to do it on interest only.
  • beecher2
    beecher2 Posts: 3,677 Forumite
    Tenth Anniversary 1,000 Posts Combo Breaker
    Who valued your flat at £175k? You're just about 90% LTV so too high to get a remortgage elsewhere - keep overpaying and keep in mind that rates will go up at some point.
  • Gray_m
    Gray_m Posts: 16 Forumite
    We'd like to do a repayment mortgage, hoping prices will go up a bit. are there any companys that would do such a hight ltv? valued last week by 2 estate agents.
  • beecher2
    beecher2 Posts: 3,677 Forumite
    Tenth Anniversary 1,000 Posts Combo Breaker
    Gray_m wrote: »
    We'd like to do a repayment mortgage, hoping prices will go up a bit. are there any companys that would do such a hight ltv? valued last week by 2 estate agents.

    An estate agent valuation is likely to be higher than a bank's valuation so your LTV is likely to be higher than 90% I'm afraid. Is your present lender offering you anything?
  • Gray_m
    Gray_m Posts: 16 Forumite
    To be honest, we haven't enquired. Mainly because we have had children since we took out the original mortgage and our joint income has dramatically decreased. we can still afford the interest only payments and over paying roughly 200-250 a month. But is was a really struggle to get this mortgage in the first place without the reduced income.... stupid question i know but if we went to our lender (A&L) and asked them about different packages, would they need the same amount of info as before (bank statements,payslips etc...) stupid question i know... just clutching at straws.....
  • beecher2
    beecher2 Posts: 3,677 Forumite
    Tenth Anniversary 1,000 Posts Combo Breaker
    It isn't a stupid question - your lender wouldn't ask for bank statements or payslips if they offered you a new deal. You could phone them up and ask them what deals they'd offer you, if any, at at least you'll know where you stand. Going to another lender doesn't sound like an option for you at the moment.
  • Gray_m
    Gray_m Posts: 16 Forumite
    Many thanks Beecher2, will give it a go....
    :)
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