What happens if you can't get a new mortgage deal?

*Summertime*

I am due to remortgage in May, and obviously the mortgage advisor will tell us all we need to know then, but I am just thinking about it now.

I assumed that if you were on the property ladder and had a mortgage you are in a good place...but I hear we may still find it very difficult to get a new deal if our house is in begative equity?

I don't think it is, we bought it just over two years ago and are in our last year of a repayment fixed rate. Since we bought it we have spent £20k on a new kitchen, bathroom, boiler and repaired the windows.

Any advice gratefully received

S

opinions4u

Your mortgage will remain with your existing lender and move on to their standard variable rate (SVR) unless your agreement with them states otherwise.

*Summertime*

Oh that seems simple enough, thank you!

HappyMJ

You will stay as you are. Nothing happens. You won't be forced to sell as long as you continue to make the monthly repayments on time. I have never remortgaged. Being self-employed I wasn't up for proving income every 2 years so I got a mortgage for life. 1 set of fees, 1 valuation fee, 1 arrangement fee, 1 lot of solicitor fees and a low interest rate. Not the best or lowest rate on the market but a good one and the features of the mortgage attracted me and I've stayed with it ever since and I will never change it.

I don't understand why people keep remortgaging to the best rate. The best rate never stays the best rate for long. They only do it to attract customers then sting them with higher variable rates later or high exit fees.

Laver

From what I understand (baring in mind I’m a FTB), when you finish your fixed deal with your existing mortgage company, you don’t need to go and find a ‘new’ mortgage as you’re simply transferred on to your existing mortgage companies variable rate product.

In terms of finding a ‘new’ deal, you’d only have to go through the mortgage process again if you feel you’ll be financially better off on another product somewhere else (i.e. another fixed product); but this would be down to a personal decision.

Laver

Two people beat me to it!