Alion's Mortgage Reduction Diary

Alion

Well, it's coming. 2-year fixed rate comes to an end at the end of January and we're looking at another fixed rate deal. We appreciate how lucky we've been to have had a low rate all that time and that they're back to much the same and we've missed the increases.

As this thread has shown, we've been working very very hard to get a 25% stake in our house over the last two years. We've been working even harder the last 6 months to save all we can in case the value of our home has dropped too much. We bought at £225k, similar houses in our area were selling at £240k a year later, but we can't really find any information since then so have no idea what the current value is.

From the start our plan allowed the value of the house to drop to £218 and we now think we can stretch to £210k (but we won't be able to get the car we were hoping to). I have no idea what to expect.

Valuation is Monday. We've got a good rate based on it being a 75% mortgage. If not, we've done all we can, but I really hope that we actually get something back for all the work we've done.

SmlSave

Good luck with the valuation! I'm everything will be fine

setmefree2

and

Alion

How long does a valuation take to come through? The guy came this morning but I didn't ask how long we'd have to wait...

Alion

Valuation from Abbey was £200k. We're nowhere near getting the 75% we need (£12k off) for the good rates.

Haven't decided a plan yet, but all that hard work has got us nowhere.

SmlSave

Haven't decided a plan yet, but all that hard work has got us nowhere.

don't say that Alion

surely you are better off than you would have been?

allIcouldwishfor

Alion, you've still saved a shedload of interest so it hasn't all been for nothing.

hardworking_bob

Shame on the valuation but the SVR with nationwide is competitive...should be better then the fixed rate you were on? I know my SVR is better than my fixed rate that I booked june 07...I've got 6 months before I fall onto my SVR with Abbey. Well done with the overpayments!

ShelleyC_2

Alion wrote: »

Valuation from Abbey was £200k. We're nowhere near getting the 75% we need (£12k off) for the good rates.

Haven't decided a plan yet, but all that hard work has got us nowhere.

You must be gutted but all your hard work has paid off - without the overpayments you be worse off. Hang on in there and I hope you find a good remortgage option

Alion

Thanks you lot - I was feeling very sorry for myself last week - we've put a lot of work in but didn't get to where we wanted to be.

We have decided to roll onto the SVR for the time being, see where we end up. 1st Feb we put the £20k savings in along with £500 interest. Really looking forwards to that and it's wasting away in an accounts with rapidly decreasing interest rates so it'll start paying for itself soon.

We're still aiming to only owe £125k (half the value of our house when we bought it) by the 5-year mark - 3 years to go - and that's a goal post that won't move.

You're right, what we've done is great and what we're doing is great. We'd been offered a very good fixed rate, but we can't have it and that's just the way it is. If we hadn't put extra money in we'd not even have 90% on that valuation - what we've done has made a massive difference