100% Mortgage-AM I STUCK!!??

Martin82

I currently have a 100% mortgage, interest only on my house. I have recently come to the end of my fixed rate agreement and feel as though I am trapped with my current mortgage company, Accord Mortgages?

I do not have a deposit to put down so I am unable to look at anything less than a 100%.

I am currently on the SVR which is 6.2% which means that my payments are very high. I have been advised by Accord that this is the only option for me.

I was hoping someone out there maybe able to give me some advice on firstly whether this is correct and if not what the best route for me would be.

Kind Regards
Martin82

somethingcorporate

How did you intend to repay the capital considering you have been on IO so far?

Depending when you bought you are probably now in negative equity which means no new lender would touch you. You may get offered a new fixed deal from your existing provider, have you talked to them about it?

Aside from that you will have to stick to the SVR (or sell) until you build up some value in your house.

LilacPixie

TBH even if you had a 10% deposit you may struggleto get a rate of 6.2%. What was your fixedrate out of interest? My only suggestion is to jiggle your budget and start to find money to use for a deposit to open up the possibility of switching to another lender

puddy

i would sell it and rent, you are going to be in trouble when rates go up, you're unable to remortgage

G_M

How did you plan to pay off the capital?
How did you budget for rising interest rates and your ability to pay?
How did you budget for the inevitable end to the fixed deal?

Taking out a 100% mortgage was always a risk (one which you chose to take - the bank did not force this position on you) so surely you thought through the implications?

Now for the options.
1) If your property has risen in value since you bought it (unlikely, but check) you may have equity in it now so be able to get a 80 or 90% re-mortgage
2) If not, you'll not get another lender interested so will have to either
a) sell
b) rent it out (you'll need to do loads of budget forecasts to see if this works) or
c) pay the increased interest payments and hope rates don't rise again until your promotion comes through

puddy

and out of those options, b may not be possible if your lender doesnt allow, or expects you to get rent of 125% of the mortgage costs or you need to improve the property to get tenants in, dont forget landlord insurance, tax, safety certs etc

c might be possible and would enable you to eventually move to put capital repayments on

you also have the options of extending the term, what term are you on, basic 25 years or less? could you extend this to 30 or more to give you some breathing space while you work out what to do?

Richard_Webster

We haven't been told what percentage the mortgage is of the present value of the property. That is the critical point.

PasturesNew

Other options:
- get a 2nd job
- get a lodger

Use all that money to pay down your mortgage by the best method possible.