Please Help!! RTB mortgage ends

Ljmcg123

Please can somebody give me advice on what to do about a Let to Buy mortgage with West Bromich that ends next May, I am starting to really worry about what I can do? It was a 10 year term, I lived in the property and owned outright, it was valued at £90,000 9 years ago and I got a let to buy mortgage for £63,000, which was put into another property with my partner.
My problem is the house is in an area that has significantly declined in Lancashire and house prices for my postcode are averaging at about £50000 if you're lucky, the council have recently bought up a few houses on the street for around £25000 at auction and so the average price has dropped dramatically. I can't remortgage because of the LTV I have no spare income, the property is currently rented out for £400 a month.
I have spoken to west Bromich and they are no longer offering RTB a mortgages and are calling then in at the end of term. I had no idea that the property would decrease so much in value and I am really worried about what is going to happen, can they take my property that I live in with my family off me, we are both self employed and our income is very low at the moment and can't remortgage on income. Please can someone offer me some advice as to what my options may be? Thanks in advance

silvercar

First thing is to establish the value of the property. get a few estate agents round and find out what yours is worth.

psyjrobe

As with the previous reply, get an accurate valuation first. It may not be as bad as you think. Zoopla for example can be very unreliable.

Ten years of payments plus your initial deposit must mean that you have paid off a fair amount relative to the original loan? Given the fact that it is also renting for £400 - this is in your favour. Lenders may actually see you as very low risk and therefore able to offer you a low rate of interest.

Talk to mortgage advisor's as soon as possible. This is the only way to get accurate advice. I'm sure a lot of people have been in a similar situation over recent years and there are different options available.

stator

What is your current APR?
Have you worked out what you repayments will be at 4% (WB current SVR)?

Ljmcg123

Thankyou for all your replies, it's currently only 1.25%, it's an interest only mortgage, so I still owe full amount. I have contacted West Bromich and asked if I could make it a repayment mortgae but they aren't doing BTL mortgages anymore and advised me to seek financial advice, but other than that not very helpful. I really don't want to have to let it get repossessed and there be a shortfall that I owe them, as we are already struggling financially and I'm really worried. I will take your advice and get a few valuations but I'm not holding much hope as the area has really declined. Could I get a mortgage on rental income alone? Thanks again

stator

Generally for a buy to let mortgage you need a 25% deposit / equity so I don't think you will find any other options in negative equity.