mortgage deal due for renewal

florida2012_2

Hi there,

I am looking for some advice please. My mortgage deal is due for renewal in a few months. We are currently paying £604 a month I am not sure what the interest rate is - I think 5.9% - sorry my partner takes to do with this. The deal was fixed for 2 years. We bought our house for £118,000 but had a deposit so our mortgage was for £106,000.

I am worried that we won’t be able to a another deal if our house in NE. I don’t know what it would be valued at the moment.

Can someone please explain what would happen if this were the case, and what the likelihood is of our house being in NE in this current climate and will our monthly payments increase.:eek:
Many thanks, J

GuidoT

What happens to your mortgage deal at the end of your fixed period? You need to check your mortgage offer or give your lender a call.

Usually you go onto a standard variable rate, which can sometimes result in your being on a better rate than you get elsewhere and or you are currently on.

If you are in negative equity then you will only get a mortgage to the value that the lender's surveyor (less 10% or whatever depending on the deal) attributes to it.

As to whether you are in negative equity I have no idea (I do not even know where your property is located) you need to look on line or in your local papers for comparisons.

florida2012_2

Thanks for this - yes we go on to the SVR which is lower than what we are on at the moment. It just make me worry about being on a variable rate. We have an appointment with an independant advisor who got us our other deal 2 years ago so I will see what he comes up with.

Many thanks again!:D