What will happen when my Northern Rock deal ends??

cmr81

I'm new to this forum and I hope someone can give me some advise. I brought my house at the peak of the market on 100% NR mortgage, the fixed rate ends next April and I'm really worried about what will happen then. As interest rates are low it will be fine to move on the their Standard Rate but I'm worried about what will happen when they rise? If they raise by a few % it would be a real stuggle to pay. Is it possible to get any other mortgage deals with 5% or 10% deposit (at the moment I don't even have 5% paid off)? and what will happen if I'm in negative equity? I don't think I am but not sure - I am confused and any advise would be really appreciated!

Thrugelmir

Hi and welcome,

How much do you owe on the mortgage?

What's the value of your property?

Is the mortgage on a repayment or interest only basis?

cmr81

Hello there

We paid £270000, have only paid off £6000 so far - so 264,000 left to pay. It is interest only but have made some overpayments to try and get the balance down. I haven't had the property valued but I think is is probably worth roughly what we paid for it as a very similar house on our road sold for the same amount recently. I may have gone down slightly though? I suppose getting it valued would be the first step!