Mortgage prisoner- Help!

Charmoot

Help!
We came to the end of our fixed deal a few years ago. I want to remortgage for a cheaper deal and work we have had done to the house also means we are looking for a lower LTV rate too.
However, our circs have changed since the first deal. We now have 2 disabled children to look after. I don't work and my partners' income is low. We are, however, in receipt of a large amount of benefits. We always over pay our mortgage by £200, have no other loans or commitments. We really can afford our mortgage and it seems ridiculous that the mortgage broker says we can't 'afford' a better deal!!
Any one got any advice?
Thanks in advance

alchemist.1

Have you looked at a retention deal with the same lender rather than remortgaging?

Charmoot

Unfortunately I'm currently with NRAM and they aren't offering anything to anyone. In fact, they are positively encouraging us to move!

Thrugelmir

Charmoot wrote: »

We really can afford our mortgage

Then up your overpayments even higher. Borrowing even less may be the solution.

Charmoot

I intend to over pay as much as I can and plan to pay some savings in too. Just seems ridiculous that we are at the mercy of a standard variable rate at the cusp of a base rate rise with 16 years to go!

Thrugelmir

Charmoot wrote: »

Just seems ridiculous that we are at the mercy of a standard variable rate at the cusp of a base rate rise with 16 years to go!

That's why affordability isn't based on the current level of interest rates but future ones. Lenders aren't going to risk another PPI type scandal where they find themselves liable of "mis-selling". .

Charmoot

We need a £70000 mortgage - how much would the rate have to rise before repayment would rise £200!

Landofwood

Charmoot wrote: »

We need a £70000 mortgage - how much would the rate have to rise before repayment would rise £200!

Charmoot, do you know what your username means in Arabic?

Charmoot

No! Although having a quick look at Google has given me an idea. Whoops!

Brock_and_Roll

Keep on overpaying. Given the fragile state of the economy and the slowdown in china, I would say that the chances of any significant rises in interest rates by over the next2 or 3 years is very low.

The sterling yield curve is still as flat as a pancake - even 10 year money is under 2%

Thrugelmir

Charmoot wrote: »

We need a £70000 mortgage - how much would the rate have to rise before repayment would rise £200!

Is your mortgage on a repayment or interest only basis currently?