Remortgage Help

BabyB_2

Hi,

Can anyone help? I have been stuck in a high fixed rate with Northern Rock. At the moment they are waivering their early repayment fee. I have approx £146k mortgage and the property is worth bout £155-£160k. Our combined incomes were about £50k but I am currently on maternity leave. I have made brief enquiries about remortgaging with IFA'S but was told it was a no go unless we had 15% equity. We also unfortunately have about £15k of debt.

I recently gave birth to a beautiful girl who was 10 weeks premature and required life saving surgery at 2 days old. After 12 weeks in hospital we are all home and she is doing really well however I want to have as much time off work as possible as she has problems with feeding and will have more problems with weaning and we have numerous ongoing hospital appointments. If we could get out of our fixed rate we could greatly reduce our mortgage payments.

Any advice would be greatfully received.

kingstreet

You were correctly advised. The equity you have is insufficient. You'll need at least 15% and have a squeaky clean credit history. Your existing credit will impact on your borrowing power and affordability.

You say the property is worth £155k to £160k. Did you get a valuation from HomeTrack, or are these figures from estate agents looking to put the property on the market? If the latter, I would worry you've actually got enough to pay off your current mortgage at £145k.

Probably not what you want to hear, but seeing out the remaining time on the fix appears to be the only option.