Help I need to remortgage but its impossible?!!

harper21

I would really appreciate some advice I am clueless when it comes to mortgages & I really do not know what to do!
I have an interest only mortgage with kensington I have had it for 5 years and I still owe what I started with - I would like to remortage with another company to have a repayment mortgage however have no deposit to put down, so Im in a bit of a pickle. Is it worth getting a loan for a deposit?

any ideas??

Dave_Ham

Hi - lets start at the top.

What is your current mortgage balance and what is your approx. property valuation?

harper21

My balance is 126,500 I think the value is about 115 - 120,000

VortexSteve

You need to review your finances to make sure it will be viable. If you're on IO but haven't been able to save any sort of deposit how will you afford a repayment mortgage?

Taking best case scenario of a valuation coming in at £120k you'll still need to save £12-15,000 to get your self started (don't take out a loan).

opinions4u

You're right. You can't remortgage.

To have the slightest chance you need:

1) Your property value to increase and/or

2) Your debt to reduce

You can influence (2) by overpaying your debt or asking the lender to switch you to a repayment mortgage (or preferably both).

Then, in time, you should be in a better position to change lenders.

koexelek

If you just want to remortgage in order to convert it from interest only to repayment, you might just as well ask Kensington to convert it to capital and interest.
Most lenders will be happy to do that.... it is repayment to interest only they don't like