Advice please!!

bud_white

Hi all, I bought my house in Feb 07 for 105000. I've done a load of work on it and just had it valued to my dismay between 95000 - 100000. I hate to think what it would have been had I not done the work. I owe roughly 95000 on my mortgage and at the minute I'm saving a fortune as my fixed rate has ended so I'm on a variable rate. I suspect that the low interest rate isn't going to last forever so I'm trying to fix my mortgage to no avail according to comparison web sites. I presume this is due to the 95%+ I would require. I earn roughly 29000 per year plus overtime. My Mrs earns around £8000 per year. Does anyone know of a bank/company/mortgage deal, which would lend for this scenario? Also what is expected to happen with the interest rate. I've googled it, but there isn't really any clear info that I can find. I could be worrying for nothing!!

_Andy_

No other mortgage lender will accept that. Your only option is staying with your current lender, either on the SVR or other rates it they offer them to you.

beecher2

Save as much as you can in order to get your LTV down before rates go up.

Pincher

Ask these property makeover programs to come over and do you house up. If the house is then worth £120k, £95k suddenly becomes 80% LTV.

bud_white

Thanks all. I don't think the tv idea is as easy as it sounds lol!! Wish it was!!

Thrugelmir

Pincher wrote: »

Ask these property makeover programs to come over and do you house up. If the house is then worth £120k, £95k suddenly becomes 80% LTV.

That was in the days of a rising market. Where doing nothing to a property was actually better. People believed they were adding value but in many instances didn't. Not everyone wants open plan living for example. So have reinstated walls for example to redivide rooms.

Thrugelmir

I've googled it, but there isn't really any clear info that I can find. I could be worrying for nothing!!

Interest rates at some point will rise. Of that there's no doubt. So personally I would take this opportunity while interest rates are low to pay down the mortgage. The lower the capital balance owed the less impact increases in the mortgage rate will have. Interest rates will never be this low ever again.

Whilst the value of your house may be disappointing. The sooner you've cleared the mortgage. The sooner the house will be yours. Think of it as no more rent to pay.