Stuck with mortgage provider

themac007

Hi

It seems that im stuck with my current mortgage provider and theres nothing they can do to help me. I came out of a 5yr fixed (interest only too) about 18 months ago now, ever since that point they have said there has been no products available to me. I reverted onto their SVR and moved to full repayment. I called them up yesterday to discuss rates again, this time there are rates available but they are the same or higher than the SVR plus fees too. I was told my LTV is 99.5% according to their computer, as Ive only paid 2k off the balance and have lost 22k in deposit/equity since i bought the property.

I dont know a a huge amout about mortgages but surely my house hasnt lost that much value and surely 4.5% above the bank rate could be bettered?

Any help appreciated...

Thrugelmir

Who is your lender?

Bufger

themac007 wrote: »

Hi

It seems that im stuck with my current mortgage provider and theres nothing they can do to help me. I came out of a 5yr fixed (interest only too) about 18 months ago now, ever since that point they have said there has been no products available to me. I reverted onto their SVR and moved to full repayment. I called them up yesterday to discuss rates again, this time there are rates available but they are the same or higher than the SVR plus fees too. I was told my LTV is 99.5% according to their computer, as Ive only paid 2k off the balance and have lost 22k in deposit/equity since i bought the property.

I dont know a a huge amout about mortgages but surely my house hasnt lost that much value and surely 4.5% above the bank rate could be bettered?

Any help appreciated...

Your rate will rely completely on your LTV. Firstly i'd look at your house value compared to the value when you bought the property. Have a look for free on sites like Zoopla or you could ask an estate agent for an estimate (if they think they may get business they'll do it). That will give you an idea if you have lost 20k in value or if it was overvalued in the first place.

Once you know the value you''ll be able to work out the equity and LTV. For a 90% product you are looking at around 5-6% on a repayment basis.

I'd seriously consider looking at getting yourself out of this situation by overpaying and reducing the capital. Once this is done you'll have more choice but until then you're in a very sticky situation being close to negative equity

Dave_Ham

Another satisfied Santander customer

What is your home realistically worth?

They will be going off of their computerised system and therefore on full repayment you may have opportunities elsewhere, where a real surveyor will undertake a home valuation.

themac007

Dave_Ham wrote: »

Another satisfied Santander customer

What is your home realistically worth?

They will be going off of their computerised system and therefore on full repayment you may have opportunities elsewhere, where a real surveyor will undertake a home valuation.

Yep, Santander and there computer that likes to say no. Wish i'd never taken the mortgage out with them in the first place.

Thrugelmir

First step is to obtain a market valuation on your property. I would suggest using 3 estate agents. Take the average of the figures quoted as a guide to the property's value. (Don't tell the EA's you are not actually selling).

Then you'll have a good idea as to the LTV on the property.

If you've only been on repayment for 18 months then you've not repaid much capital. Suggest you overpay by whatever you can afford to accelerate repayment of the debt. In the process improving the LTV.

kidmugsy

themac007 wrote: »

lost 22k in deposit/equity since i bought the property.

I dont know a a huge amout about mortgages but surely my house hasnt lost that much value

Unless your house is rather unusual it shouldn't be hard to check whether that's true. If you can document that it's wrong it might be worth arguing with your provider.

themac007

Did try this a while ago when i moved from interest only, Santander will only accept their "Global Indicator" valuation and thats it. I think i need to start overpaying the mortgage then hopefully i can get away from the bunch of *******s!

Thrugelmir

themac007 wrote: »

Did try this a while ago when i moved from interest only, Santander will only accept their "Global Indicator" valuation and thats it. I think i need to start overpaying the mortgage then hopefully i can get away from the bunch of *******s!

By overpaying you may find that Santander will offer you an acceptable rate.

If you'd been on repayment from the outset then your position would have been much better.