5yr Fixed ending in May... House Value decreased... BIG TIME

Amiz87

in reality no we could not afford the house but ALL house prices had gone up, and we had already sold our home ( we were living in a box room and my fellas mums house) so we needed to find somewhere, and this was one of the cheapest.

The other thing i just thought was I know another lender wont touch us but would we be in a position to take on a new product with our exsisting lender or would be just have to go onto the 5.99% thing?

johnsons50

Amiz,

I am pretty sure you won't be able to get a new product with your existing lender if you are in negative equity. That is the situation we had with BM.

asandwhen

If you are 100+% LTV with Accord you can move onto another 2 year fix rate at 5.19%

See here http://www.accordmortgages.com/documents/ACCM2008_INT_EBTAL.pdf

Sammie_UK1

MissMoneypenny wrote: »

I'm not sure why your are excluding London. London always gets caught in a housing bust too and it might be worse this time with all the welfare reforms. Local news are already featuring people who will have to move because their rent benefit will be dropping this year and then next year, the benefit caps will start, plus DLA goes in April.

Im referring to houses bought in the property market and not tennants being evicted by greedy landlords who are charging extortionate rents for sub-standard properties.
London has seen a slight increase in sold house prices (according to the land registry). The weak pound has made it more attractive for foreign investors to buy property in London.

London is always the exception to any rule..

Amiz87

oh right.... that looks like a good possiability. I have made an apoointment with my mortgage advisor for tomorrow as its confusing me no end....

thank you for the recommendation tho, this looks possiable. Doesnt look like were moving anytime soon so locking into another 2 year fixed wouldnt hurt...

JimmyTheWig

Generally the answer would be no to a remortgage, even with the same mortgage company, but it seems like here you will be able to.

asandwhen wrote: »

If you are 100+% LTV with Accord you can move onto another 2 year fix rate at 5.19%

See here http://www.accordmortgages.com/documents/ACCM2008_INT_EBTAL.pdf

asandwhen

Amiz87 wrote: »

oh right.... that looks like a good possiability. I have made an apoointment with my mortgage advisor for tomorrow as its confusing me no end....

thank you for the recommendation tho, this looks possiable. Doesnt look like were moving anytime soon so locking into another 2 year fixed wouldnt hurt...

Let us know how the appointment goes

DannyboyMidlands

johnsons50 wrote: »

We are in the same position.

We bought at the height of the property boom five years ago with a two-year discounted tracker mortgage. The falling interest rates meant that our monthly repayments went from £1200 in the first month down to £600 per month a year later! Once we were put onto the SVR after two years our mortgage repayments went up to £870 per month where they have stayed for the last three years.

I am unable to re-mortgage as we are in negative equity and I have been living in fear of an interest rate rise. We are with Birmingham Midshires. Does anyone know if we will be affected by the Halifax SVR rise?

Why have you been living in fear? Your payments have been £330 per month less than you expected for 3 years and counting. At the moment you have an 11 grand buffer against rate rises and your payment is still below what you expected so the buffer will continue to increase.

Some people just don't know when they have it good.

Amiz87

so went to the meeting last night and it was alot more positive than i thought.

Looks like the fixed 2 year at 5.19 is the best option for us.
looks like were also going to stay on interest only for 7 months and use the extra money to pay of our 2 credit cards. that way when we do then go up to full repayment we will be in a much better postion each month.

so just wanted to say a HUGE thank you to asandwhen for the recommendation...

look like were going to be in a great postion in a couple of years

asandwhen

Amiz87 wrote: »

so went to the meeting last night and it was alot more positive than i thought.

Looks like the fixed 2 year at 5.19 is the best option for us.
looks like were also going to stay on interest only for 7 months and use the extra money to pay of our 2 credit cards. that way when we do then go up to full repayment we will be in a much better postion each month.

so just wanted to say a HUGE thank you to JimmyTheWig for the recommendation...

look like were going to be in a great postion in a couple of years

Great news....
Also was it JimmyTheWig??