property market??

beecher2

iam2103 wrote: »

currently flats are going for around the same price as i bought mine for in Aberdeen city centre so would this help with a remortgage i will have to look at my figures i have from lender and see what the outcome is!:(

No because your LTV would still be close to 100% and you need equity in order to remortgage.

iam2103

I have just looked over my mortgage and statement details in 2008 I purchased my flat for 95k. The mortgage I got was from Birmingham midshires. I make monthly payments since then of £619.47 this is a fixed rate mortgage at 7.10% until 0/06/2011. The documents say that I got £91245 for mortgage and an unsecured loan of £4750. Period was 35 years. I have yearly statements and as of 31st march 2010 loan statement says that I have £4707.07 left to pay. Mortgage statement for same date says I have £90476 left to pay. So I take it the 620 a month I pay is paying interest only as these values still seem high. So does anyone know if I will be able to get a remortgage on my flat or not and any good advice as in to pay it off quicker?? If I don't remortgage it says my mortgage will run at a variable rate 2.44% above the bank of England base rate. Any help would be much grateful thanks.

GMS

You do not have enough equity to remortgage.

Stick where you are and overpay as much as possible.

Once you get to the tracker rate SVR try to pay the same as you are paying now (assuming the new payment is still less then) as this will help reduce your balance quicker.

If you can afford it, reduce the term to 25 years or less.

iam2103

So just let the fixed rate finish then go onto the variable rate plus the 2.4%? can I not pay the loan off if I can with a better rate loan? So when can I get another mortgage? As I don't want to be stuck when interests rates do rise by a good bit?? Thanks for your feed back really appreciated don't know where I would be without it.

GMS

If you can get a better rate loan then yes you can pay it off but I doubt you will.

You would need a lot more equity to be able to get a better rate as things stand.

Overpay as much as you can to get your capital down.

iam2103

So how long do I do that for, when do I look for a better mortgage? Thanks again .

GMS

iam2103 wrote: »

So how long do I do that for, when do I look for a better mortgage? Thanks again .

For as long s you can. The less you owe the better.

If and when property prices rise, togther with a falling balance on your mortgage there will come a point when you can remortgage.

I wish I knew when that was but out of my hands unfortunately.

Good luck

iam2103

just looking at a few other posts and was wondering if i asked my current lender would they extend my fixed rate term say for another 3 years or do they not do that? thanks.

GMS

If you fit in to their criteria they would do but as it is you do not have the equity to get a decent rate.

Go on the the revert rate and overpay.

Without the equity there is no other way.

beecher2

iam2103 wrote: »

So how long do I do that for, when do I look for a better mortgage? Thanks again .

The reality is that you might be in for a long haul - overpay or save as much as you can to start eating away at the debt. Once you've overpaid by a few thousand, re-assess where you are.