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

beecher2

Unfortunately you won't get a deal elsewhere until your Loan to Value is below 90%. As you're interest only you may be in negative equity, depending on when you bought your house. You need to formulate a plan as rates can only go up - go onto the Debt Free Wannabee forums for help in managing your budget and overpaying as much as you possibly can.

diable

in a non technical term you are FUBAR'd

Thrugelmir

You need to start making capital repayments to reduce the balance owed. As you owe less then you'll pay less in interest. So however small start tackling the debt. As ultimately thats what a mortgage is.

mcc100

Sorry I can't offer any positive advice but just out of curiousity why on earth did you take out a 100% interest only mortgage in the first place.

Was it not explained to you that with an interest only mortgage you would never reduce the amount owed on the mortgage?

orangina

Unfortunatley you have no option but to stay with Accord as no other lender now offers 100% lending....start to pay off some capital each month if you can, no matter how little so that you can start to reduce the balance and put yourself in a better position in a few years time

Good Luck

dunstonh

I currently have a 100% mortgage, interest only on my house.

Given your poor credit situation you may want to take a look at the debt free wannabee section. They have some very good people in there who can help those like yourself who have problems with their borrowing.

I suggest you do this sooner rather than latter as your position as the longer you leave it the harder it gets.

getmore4less

Not sure why you are asking the question now.

It would have been fairly obvious at the time you took the mortgage this was going to be a long term arrangment and not just for the fixed term, unless you did something to reduce the capital owing and improve LTV.

jamesd

Martin82, any other borrowing? Getting help to get rid of that may help you to deal with the mortgage.

getmore4less, that was probably at a time when 100% mortgage deals were readily available and with the expectation that they would continue to be available, while property value increases would reduce the LTV.

mettlemickey

Hi Matin82

Im in pretty much the same boat. I have 119,000 interest only mortgage with NRAM. The value of my house has gone down to about 119,00, so even though i had some equity in it when i bought it, there is none now and im stuck at around 100% LTV.

My fixed rate ends in June and id like to re-fix it but NRAM have nothing for me without at least 15% deposit. Im guessing most lenders are the same but hoping someone on here may know better.....

dunstonh

My fixed rate ends in June and id like to re-fix it but NRAM have nothing for me without at least 15% deposit. Im guessing most lenders are the same but hoping someone on here may know better.....

You have two issues.

There are no 100% deals and dont expect them to return. You are also interest only and being NR that probably means no repayment vehicle. So, a new lender would expect you to switch to repayment mortgage or provide evidence of your repayment vehicle.