Remortgage when current deal ends

cmcp

Hi i have a mortage deal which is due to end in october. the rate wasnt great, but as we dont have a great credit history (its not bad, just classed as fair and good for us both) we accepted the rate as the best we would get. We have moved house due to reloaction and are currently renting until we can sell the house. my concern is that when it comes to remortgaging we will struggle to get a decent deal, or even any deal at all due to the lack of credit in the market (especially for our type of credit rating) and we will be paying a crippling amount in mortgage payments every month. we have tenants in the house but their rent doesnt come close to covering the mortgage. has anyone found themself in a similar position or have any advise?
thanks M

hillcats

Have you asked permission from your existing lender if you can let the property out to tenants?
Have you got the correct type of house insurance now?
Have the appliances etc been checked for safety?

There is a big difference between actually buying a property for you and your family to live in, when compared to letting a property out, also BTL mortgages (more expensive) and Residential mortgages, and I note you state the rent is not even covering your re-payments? I think you need to act fast and decide what you are doing in the situation, can you try to sell up and then buy in your new area, you almost certainly sound like you would struggle to get a second mortgage on another property ? Hmmm needs lots of thought here.

Someone else with more knowledge will hopefully be along soon and give you some more advice, I'm sure...

cmcp

Hi, thanks for your response.

what i am looking to find out is does anyone have experience with a deal coming to an end and having to look for another deal....my concern is that although in the past 10 years we have never had any diffeculty in obtaining a mortgage, there are less products on the market today. im imagining a worst case scenario whereby we cant get a new deal with another lender and our current lender doesnt have a deal to offer. The house cant be sold at the moment as i would lose too much money.

beecher2

What is your follow on rate?

No point in asking what other people's experience is in finding a new deal as no-one will have the same situation as yourself. What's your LTV? You see you would lose too much money if you sold at the moment - are you in negative equity? It doesn't make much sense to keep a house which is costing you money so it may be an idea to sell and take the hit now.

getmore4less

cmcp wrote: »

Hi i have a mortage deal which is due to end in october. the rate wasnt great, but as we dont have a great credit history (its not bad, just classed as fair and good for us both) we accepted the rate as the best we would get. We have moved house due to reloaction and are currently renting until we can sell the house. my concern is that when it comes to remortgaging we will struggle to get a decent deal, or even any deal at all due to the lack of credit in the market (especially for our type of credit rating) and we will be paying a crippling amount in mortgage payments every month. we have tenants in the house but their rent doesnt come close to covering the mortgage. has anyone found themself in a similar position or have any advise?
thanks M

You say later you will loose money by selling whats the value(sell value not your dream value) and mortgage?

I don't think any new lender will touch you unless the current rate is very high and you have good LTV.

Your existing lender may not be happy if you have not got concent to let.

Follow on rate might be your only option.