My worst nightmare is happening

RCTLisa

Background
our fixed rate mortgage is due to end in August this year. We have been paying 8.4% on a 4 year fixed mortgage with GE money (£1001.14 monthly payments) and have made all of them. We paid £148500 for our house and have had it valued at £143500 by a local estate agent. As of March 2012 we currently owe £122,700 which puts us over the 85% LTV.
Now we contacted L&C brokers who said they could get us a loan no problem. 10 days after our conversation started I got an e-mail saying they couldn't help us and no further correspondence was required due to not having 85% - we did offer to add the money in to make it 85% but they weren't interested.
Now back in 2008 both my husband and I have a credit score less than 350 each. Currently we are both over 800 which isn't great but much better. We have pretty much cleared our debts and only have one credit card and a car loan. (approx £300 a month for both)

Now we don't know what to do next. GE money said we will go on to their standard rate as stated by the original paperwork (£1052) but we were told that at the end of this fixed term we can get a much better deal and monthly payment.

Please can anyone advise us or point us in the right direction.

betmunch

What exactly does it say your follow on rate will be?

This was done before the rates dropped so I suspect you have got your monthly payment wrong.

I am with GEMoney (although its a 6 year old mortgage) and at that time there were following onto a set percentage above base so my published rate of over 7% actually is charging at 3.64%

RCTLisa

I have spoken to them this morning and they confirmed the monthly fee as stated. Follow on rate is 8.9% according to the paperwork

billybear1

WOW 8.9% with GE seems quite high. We have got a tracker with them going through now at 5.4% which I thought was quite high. I guess that the 15% is the stumbling block here with the remortgage, will GE not internal score you and move you to another product?

OR... Could you not value the house higher, and get the valuation done at that price. Usually valuers are a YES or NO answer, so they may well, and hopefully will value at the 20% LTV. Say 148K and put another 4 down in lump payment to increase equity.

I am not a broker and may be miles off, but is this a possibility?

Dave_Ham

RCTLisa wrote: »

Background
our fixed rate mortgage is due to end in August this year. We have been paying 8.4% on a 4 year fixed mortgage with GE money (£1001.14 monthly payments) and have made all of them. We paid £148500 for our house and have had it valued at £143500 by a local estate agent. As of March 2012 we currently owe £122,700 which puts us over the 85% LTV.
Now we contacted L&C brokers who said they could get us a loan no problem. 10 days after our conversation started I got an e-mail saying they couldn't help us and no further correspondence was required due to not having 85% - we did offer to add the money in to make it 85% but they weren't interested.
Now back in 2008 both my husband and I have a credit score less than 350 each. Currently we are both over 800 which isn't great but much better. We have pretty much cleared our debts and only have one credit card and a car loan. (approx £300 a month for both)

Now we don't know what to do next. GE money said we will go on to their standard rate as stated by the original paperwork (£1052) but we were told that at the end of this fixed term we can get a much better deal and monthly payment.

Please can anyone advise us or point us in the right direction.

I am a little confused, surely you should just remortgage away at 85%?

Not sure how L&C have over complicated this, or I have mis-read...

Loving Betmuch new signature - just spotted...

betmunch

Dave_Ham wrote: »

Loving Betmuch new signature - just spotted...

Good huh?