We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide

Mortage Problem

Having been forced into a remortage with Mortage Agency Services(interest only) over five years ago due to my divorce, with no other choice. I feel that they have got me over a barrell!! They have just increased my rate to 5.25%. They will not consider any other alternative for me. My income has increased over the 5 years but the equity is reducing year by year. The equity is currently about £20000 approx. I need to get out of this situation!
Can anybody assist me on this please?:money:

Comments

  • GMS
    GMS Posts: 5,388 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    How much do you owe on the mortgage?
    What is your income?
    Have you any adverse credit such as missed payments, defaults or CCJ's?
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Without knowing the property value, its hard to know how high a loan to value you have. If it is above say 85%, new lenders taking you on will look for you to set the mortgage up on a repayment basis and you'll probably find their rates are higher than the SVR you're on now.........plus fees to set up a new deal.
  • steveM1978
    steveM1978 Posts: 64 Forumite
    Part of the Furniture Combo Breaker
    at a guess, either your income isnt high enough for another lender to consider looking at it or you dont have enough equity for another lender.

    You could sell the house.
  • _Andy_
    _Andy_ Posts: 11,150 Forumite
    If you're finding interest only payments at that rate a struggle really the only realistic option is selling up.
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 353.9K Banking & Borrowing
  • 254.3K Reduce Debt & Boost Income
  • 455.2K Spending & Discounts
  • 246.9K Work, Benefits & Business
  • 603.5K Mortgages, Homes & Bills
  • 178.3K Life & Family
  • 261K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.