Remortgage

JOJOJOJO_3

Hi my partner needs to remortgage or get a better deal on his current mortgage as he is struggling with the payments at the moment. I f the interest rates rise he will end up losing the house as he wont be able to afford it any longer. We have assessed his money situation and it is just too much of a stretch. The bank cant give him a better deal as they are sayin there is not enough equity in the house and they are suprised he got a mortgage with just his salary in the first place! which does not help.... Any advice on where we may be able to help would be really appreciated..

Thanks

Thrugelmir

JOJOJOJO wrote: »

The bank cant give him a better deal as they are sayin there is not enough equity in the house and they are suprised he got a mortgage with just his salary in the first place! (

Then consider selling. Before the situation deteriorates further. A "better deal" is only a temporary fix for a long term problem.

JOJOJOJO_3

We cant sell as we wont be able to find anywhere like the place we are in and will find it hard to get a mortgage so selling is not an option. Surely there is something we may be can do to help or get help

Thrugelmir

Then you'll need to increase the equity in the property. This will have the effect of improving both the LTV, and reducing the debt burden. Which in time will result in better mortgage deals be coming available available. Also the lower mortgage balance will limit the increase in mortgage payments once interest rates rise.

There's no easy answers. Analyse every penny you spend and target the savings to reduce the mortgage. Not suggesting it will be fun, but if you are determined to hold onto the property. Then it will be worth the effort in the years to come. Also try and increase your income in someway.