SVR to Fixed Rate help needed

foundationsmcr

Hi people, I'm looking for some advice on our mortgage situation. Some background info; my partner and I are entering our 4th year in our first home. We originally took a 95% LTV mortgage on a fixed rate 2 year deal. My partner was still within her 6 year qualification period to obtain a Graduate Mortgage Deal. My credit record isn't the best (2 defaults, one due to drop off in June) but we managed to obtain a mortgage with our bank HSBC. Obviously when the deal ended (12 months ago) and the Base Rate was as low as it was (and still is), it worked to our advantage to remain on the SVR as our payments dropped by approx £300 per month. We're starting to get a bit twitchy about the Base Rate increasing and wondered if anyone had any advice on our situation. We don't have any savings we can use (we have savings, but we get married in September and we're determined not to take any credit to pay for it). This means we're likely to be looking for another 95% deal. We're also likely to be looking to move within the next 3-5 years.

Our salaries have increased by £10K (gross) since we took the original mortgage out, but we're worried that there wont be any products out there for us, or that we wont be able to secure a fixed rate deal which is worthwhile due to my poor credit history. I believe our original fixed rate was around 6.49%.

Does anyone have any recommendations which might be worth approaching first?

BoGoF

In all honesty you are not going to get a good deal, if any, at 95% ltv.

You somehow need to reduce your ltv figure. What have you been doing with the £300 p.m you saved when you reverted to svr? (the correct answer is overpay the mortgage!)

Your credit rating could also be an issue.

The goalposts have moved quite a bit in the last 4 years I'm afraid and I think remaining on the svr is going to be your only option

foundationsmcr

BoGoF wrote: »

In all honesty you are not going to get a good deal, if any, at 95% ltv.

You somehow need to reduce your ltv figure. What have you been doing with the £300 p.m you saved when you reverted to svr? (the correct answer is overpay the mortgage!)

Your credit rating could also be an issue.

The goalposts have moved quite a bit in the last 4 years I'm afraid and I think remaining on the svr is going to be your only option

We've spent £5K on home improvements (removing a spiral staircase and putting in some regular stairs.

We took advice from our Financial Advisor who suggested it better to have a contingency fund of 6 months salary saved before we begin making overpayments (I was made redundant 18 months ago and found work immediately).

We may speak to a Whole Of Market broker to see what products are out there and the requirements for them but I fear you may be right and we're tied to the house and BoE's decisions.