Up the creek!!

jimmyscot

Hi,

I am coming to the end of a 3 year fixed rate on my first home. At the time i took out the mortgage the market was in a good shape and i managed to get 110% LTV. My question is, i understand that i will automatically drop onto the SVR in August which in the short term will actually be a benefit but it will probably soon rise to over what i am paying currently. Is dropping to the SVR my only option?
I will still have over 100% LTV and existing customers with the DBS only get 95% LTV for new fixed rates.

Thanks,

jimmyscot

Cannon_Fodder

If you have enough income/savings, you can pay off either a lump sum or make monthly overpayments (subject to Ts&Cs) to improve the LTV, then qualify for a new deal.

jimmyscot

Thanks Cannon Fodder, I thought that might be the reply but my only problem is I would probably need to be overpaying (what I can afford) for about 3-4 years before I will get to the level of 90-100% LTV and the market could go throught the roof before then. I think i'm well and truly without a paddle now.

ILW

If the market goes thru the roof, your LTV will improve all on it's own.

Conrad

Yea the svr is your only option.

Even if 95% lending returns enmass, the rates are likely to be high.

jimmyscot

Conrad, thats what I thought!

ILW, surely mortgage rates can go up without house prices rising, no?

Thrugelmir

Rising interest rates will put downward pressure on house prices.

If you can afford it maintain your mortgage payments at the level of the fixed rate. At least you'll start to make inroads into the capital balance owed. No point in worrying about what may or may not happen in the future. Over time the situation will improve.

jimmyscot

Cheers Thrugelmir, thats exactly what i'll have to do.

P.S. not worrying about the future is easier said than done!!!

Thrugelmir

jimmyscot wrote: »

Cheers Thrugelmir, thats exactly what i'll have to do.

P.S. not worrying about the future is easier said than done!!!

Turn the negative into postive. Every month you owe less.

The less you owe the less your mortgage could increase........

ILW

I wouldnt get too stressed.
Then again I got my first mortgage in 1990, within a year the property had crashed 30% and the interest rate went up to 12%. Did eat a lot of beans.

RenovationMan

I've just started a mortgage repayment blog on the Mortgage Free Wannabe board, you should do the same. Lots of people over there trying to reduce their mortgages and seem to encourage people along. Nice atmosphere from what I've seen.

Anyway, good luck with your LTV challenge!