Remortgage if Negative Equity?

Lisa1978

Hi all, assuming the answer is nobody..... but i'll ask anyway..... are any lenders willing to remortgage a property that is in NE? We have lived in our apartment 4 years, never missed a payment, can afford it monthly and even an extra few hundred (going to start overpayments after Xmas - just paid £1200 this month off my CCs - nearly all paid off ), however are we stuck with the current lender on their ridiculous 4.99% rate?

Thanks

Dave_Ham

You can expect some cutting comments coming.

No, any lender that would lend in these circumstances (and there are only 2) would want muc, much more than the proposed silly 4.99% rate.

Put this into perspective a little; If you had a 10% deposit and wanted to buy with Halifax (Highstreet lender) you would be paying 6.29% fixed for 2 years.

Go back 5 years and .....

Keep your head day and stick to your plan overpaying, while at a generous rate of 4.99%

Good luck

Lisa1978

Thanks appreciate the response and any 'cutting comments' will be ignored. I am on asking a question to which i expect a respected answer. I knew what the answer would be but chancing my luck!

I have 22% deposit if required however keeping it for a rainy day at the mo! I didn't realise the rates were up to 6.29% now so thanks for that info :)

I beleived 4.99% SVR to be a poor rate but seems not. Thanks again

DominicJ_2

How can you be in N/E and have a 22% deposit?

holly_hobby

Its simple really .... the OP would need to both clear the NE & have the reqd min deposit for the chosen lender to be in a position to remortgage.

DomJ - what the OP means is that he has saved capital equal to a 22% deposit off his next house, the problem is he'll have to use that (and possibly more) to fully redeem the mge with the existing lender due to the neg equity situ.

H

saverbuyer

Dave_Ham wrote: »

You can expect some cutting comments coming.

No, any lender that would lend in these circumstances (and there are only 2) would want muc, much more than the proposed silly 4.99% rate.

Put this into perspective a little; If you had a 10% deposit and wanted to buy with Halifax (Highstreet lender) you would be paying 6.29% fixed for 2 years.

Go back 5 years and .....

Keep your head day and stick to your plan overpaying, while at a generous rate of 4.99%

Good luck

Why pay 4.99% interest on your mortgage and have 22% deposit sitting in a bank? It doesn't make sense. There's no way you are getting 4.99% on your savings.

Lisa1978

Well done Holly.... yes, we have savings worth 22% of our mortgage.

SaverBuyer... understand what you are saving, but as Holly guessed, we have savings but they are tied up at present as we have approx £25k with hubbies mother due to a death in the family 13 years ago. When the time is right, we will speak to his mother and take the money and either pay off the mortgage or use as a deposit for another property! TBH i've no idea what rate the savings are on as his mother has control of it all and has said we can have it whenever we want, however imo it's hubbies money (although it will be used for US for another property) therefore i don't wish to push hubbie into the wrong deicision regarding what to do with it, ie reduce mortgage/use for deposit.