MSE News: Santander to raise mortgage SVR in blow to borrowers

Thrugelmir

troyathlete wrote: »

people,

so when will santander raise the svr again 6 months ? 1 year 2 years, whats your thoughts?:j

As and when commercial grounds dictate.

troyathlete

Thrugelmir wrote: »

As and when commercial grounds dictate.

So whats your opinion on the next rise my freind?:beer:

Thrugelmir

troyathlete wrote: »

So whats your opinion on the next rise my freind?:beer:

Only one way and that's upwards.

troyathlete

Thrugelmir wrote: »

Only one way and that's upwards.

oh i agree but when, anually?

rfryer0791

Does anybody know any way out for a guy who bought out his ex-girlfriend several years ago when you could get 100% mortgages and ended up with a mortgage as big as the valuation (if not more now) of his house? I am on Santander's SVR, interest only mortgage, which is going to be rising from 4.24% to 4.74% in October and will cost me around £500-£600 per year extra. I can't see any way out other than to lease the property and move out, but even then I will struggle to recoup the £600+ per month to cover what my mortgage will go up to. I am in a 3-bed semi detached and have no savings.

Any thoughts/ideas people???

rfryer0791

rfryer0791 wrote: »

Does anybody know any way out for a guy who bought out his ex-girlfriend several years ago when you could get 100% mortgages and ended up with a mortgage as big as the valuation (if not more now) of his house? I am on Santander's SVR, interest only mortgage, which is going to be rising from 4.24% to 4.74% in October and will cost me around £500-£600 per year extra. I can't see any way out other than to lease the property and move out, but even then I will struggle to recoup the £600+ per month to cover what my mortgage will go up to. I am in a 3-bed semi detached and have no savings.

Any thoughts/ideas people???

I was one whose family broke-up I'm afraid and chose to stay in the house rather than sell and move out myself. Reckless decision perhaps, but not looking for lectures, just help please if there is indeed any to be had, which I suspect not. Thanks

harvey115

rfryer0791 wrote: »

I was one whose family broke-up I'm afraid and chose to stay in the house rather than sell and move out myself. Reckless decision perhaps, but not looking for lectures, just help please if there is indeed any to be had, which I suspect not. Thanks

I do not see any solution to this.

Even if you downsize you will have to have some Equity or other source of deposit to get a mortgage as 100% mortgages are not more available.

If you are really feeling hard to pay the monthly installments, you can call your lender and request for some help. They may consider putting you on an interest only installments for the time being if needs be.

However in terms of securing a mortgage else where would be almost impossible.

If you do not have any savings and renting would cost you more monthly, then I would say you do not have other options but to stay.

rfryer0791

harvey115 wrote: »

I do not see any solution to this.

Even if you downsize you will have to have some Equity or other source of deposit to get a mortgage as 100% mortgages are not more available.

If you are really feeling hard to pay the monthly installments, you can call your lender and request for some help. They may consider putting you on an interest only installments for the time being if needs be.

However in terms of securing a mortgage else where would be almost impossible.

If you do not have any savings and renting would cost you more monthly, then I would say you do not have other options but to stay.

Thanks Harvey. I suspected this to be the case as i have spoke to a few people who have cold-called offering mortgage solutions, only to see them disappear very quickly when I tell them my situation. At the moment I can afford the payments and if I lease my house then I will get back what I owe, but when the rates go up I will not get the total owed each month back, so I could rent a smaller place and even things out a bit. My concern is when the interest rates continue to grow and I could really struggle then.

harvey115

rfryer0791 wrote: »

Thanks Harvey. I suspected this to be the case as i have spoke to a few people who have cold-called offering mortgage solutions, only to see them disappear very quickly when I tell them my situation. At the moment I can afford the payments and if I lease my house then I will get back what I owe, but when the rates go up I will not get the total owed each month back, so I could rent a smaller place and even things out a bit. My concern is when the interest rates continue to grow and I could really struggle then.

I would not recommend leasing because their is always this chance of not meeting the motnhly commitments and you have to pay the shortfall.

You seem to have two options:

1- Saty as it is

2 - Sell up and rent if you can find a cheaper rent, keep in mind there will be costs to selling i.e. estate agents, solicitors etc.

rfryer0791

harvey115 wrote: »

I would not recommend leasing because their is always this chance of not meeting the motnhly commitments and you have to pay the shortfall.

You seem to have two options:

1- Saty as it is

2 - Sell up and rent if you can find a cheaper rent, keep in mind there will be costs to selling i.e. estate agents, solicitors etc.

Problem with selling is I will inevitably take a loss now and will be left with a rather large balance to pay afterwards.