Remortgage worry

twirlypinky

Hi, i hope you can help.

I moved in with my boyfriend in january, who has a mortgage that he got in 2007 that was at 95% (with this first time buyer cluster home, the largest deposit he was allowed to pay was 5% due to the scheme).

Since 2007 the house has fallen in vaule to the point where there really is little if any equity left in it.

The interest only mortgage deal that he had on it has ended, and he's now paying the BoE rate plus 1% or something similarly low.

I'm a little worried about the rate going up since inflation/RPI is so high at the moment, and also, i'd like to add myself to the mortgage and change it to a repayment rather than interest only, and ideally fix the rate so we know where we stand for future interest rate rises.

My boyfriend says that this will be fine. I don't think the bank will let us, i think that for us to get a new rate they'll want to revalue the house, discover the lack of equity, and charge us a massive fee for a high loan to value mortgage, or worse, simply say no.

Not really sure what to do to be honest. Am i wrong?

Thanks

Twirlypinky :beer:

beecher2

Is he overpaying at the moment?
Phone up the bank and ask them if you have any options. I'd have thought you would need equity in the house in order to get a new deal with them, but it is worth asking anyway. Your boyfriend does need a plan of action to pay back the capital, no matter what they say.

twirlypinky

No, he's not overpaying, and i just tried to get an appointment with them, and they can't see us until next saturday. I thought we might just wander in there tomorrow as we both have a day off and see if anyone can squeeze us in.

I need to get him to phone in really, they won't talk to me because it's his name on everything and he doesn't want to ring them because he doesn't believe me.

And i agree, he needs a plan of action. We're stuck between a rock and a hard place really, if they won't let us change the deal - unless over payments are on the capital alone - are they?

thanks xtx

getmore4less

All overpayments should pay off capital.
The monthly payment covers the interest

Base+1.0% is good and probably better than most fixes will end up when they end. overpay as if you had fixed and you will probably stay ahead unless rate go up a lot or you fix for a long time