Fixed mortgage just ended....do I get a new one asap....?

Miss_Orangey_Goodness

Hi...our mortgage was up yesterday (had been on our second lot of 3 fixed yr with Accord (been with for 6 years)). Decided to just let it run on....had tried to get a mortgage with the post office, accepted on principal but then rejected. I have heard that interest rates will will be going up quite a bit this year...I dont know what we can do.
I think being knocked back by the PO at the final hurdle has knocked my confidence and if I apply for another mortgage so soon it could go against ys? We have £15k equity in our property. However we have been over over-drawn a few times this year so could affect our credit rating?
Do I wait six months before seeking a financial adviser and then re-apply for a mortgage (we did the PO one online ourselves). Do you think mortgage rates (interest) will increase dramatically this year? thank you

originalmiscellany

to your qn, you're asking a question everyone wants to know!

Will interest rates increase?
Yes, they can't really go any lower and have been rock bottom for the past year and a half.

How much will they increase by?
Who knows... Some people say it'll be 5% by the middle of 2012, others saying it'll be that high by the end of 2011... Others are saying it'll be 2% until 2015. Put simply no-one knows.

You have 15k equity - that could be good depending on the value of your house - 15k equity on a 1 million house is not good, 15k equity on a 100k house is better.

What's the value of the house? Nowadays, banks are keen to lend to home owners who have large equity in their house, the best mortgage deals are for people who are borrowing only 60% or less of the house value.

What's the SVR you're now on out of interest?

If I were you, I don't think interest rates are going to make a huge swing in the next 6 months, (A small rise in Jan of 0.5%?). Therefore I'd save as much as I can, clear any debts (Credit cards etc) and build up a larger equity - ideally at least 20% of house value would be your target, then go to see an ALL OF MARKET mortgage adviser...

Yorkie1

What do you still owe on the mortgage?
What's the value of the house (realistically / conservatively, not a top EA valuation)?
What's your 'follow-on' rate (the SVR)?
Do you have any adverse credit marks on your record?

Others will need the above information to provide any opinions.

You're right that repeated applications to different lenders will damage your credit record in itself; did Post Office give any reason for turning you down?

Thrugelmir

Miss_Orangey_Goodness wrote: »

. However we have been over over-drawn a few times this year so could affect our credit rating?

Rather than worry about just mortgage interest rates now. Spend some time getting to grip with your personal finances. Then you'll be able to absorb the increases easier.

Miss_Orangey_Goodness

Thank you for your time/advice.
Our house was valued at £105k...we owe £90k (was told if we put it on the market to put it at £110k expecting £105k at most). Not sure on rates, I think it was 5-6% something (I will dig out the paperwork, I am crap at interest rates), but it works out that our current £660pm mortgage goes down to £655pm so not much change - we must have got a good deal at the time?
My credit score is "excellent" (99% on creditcheck) as I did panic with the over-overdrawn charges. Partners on the other hand is "good".
We cant really throw anything at our finances right now due to our impending wedding (although its a cheap abroad elopment affair in the summer, not a lavish thing). My friend had panicked me saying her mortgage wasnt renewed and could go up £200pm this year with possible interest rates increase. But you are right, no one knows and I think there would be a hell of a lot of us in the same boat. I think what I will do is arrange a meeting with a financial adviser as suggested and ask for their advice before applying further...
Thanks again for your replies!

benjo

Accord SVR is currently 5.99%