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Should I be concerned?
gavcradd
Posts: 110 Forumite
Hi,
With all of the recent talk of house prices falling, I'm looking for either some re-assurance or some actions to take. Here's my situation...
I bought a house with my now wife in September 2006, a 3 bed semi in East Mids for £124,950. The seller at the time wouldn't knock a penny off saying that he'd deliberately priced it low to avoid stamp duty. I now know that he paid £119,500 for it in July 2005.
As we had very little for a deposit, we took out a 30 year 100% mortgage with Standard Life, fixed for 3 years at 5.3%. This means we're currently paying £697 a month. This deal obviously comes to an end in September 2009 (I like to plan in advance!)
My worry is that when it comes to an end, we won't have paid off enough of our capital to be able to offset any price fall so we won't be able to re-mortgage and so we'll be stuck on the miserable standard rate. I should say that we didn't over stretch ourselves for the mortgage; we could afford (but not comfortably) to pay the standard rate if necessary but I certainly don't want to!
Any advice? I have this nightmare that I'll end up paying all of my money for a mortgage on a house that's worth !!!!!! all!
With all of the recent talk of house prices falling, I'm looking for either some re-assurance or some actions to take. Here's my situation...
I bought a house with my now wife in September 2006, a 3 bed semi in East Mids for £124,950. The seller at the time wouldn't knock a penny off saying that he'd deliberately priced it low to avoid stamp duty. I now know that he paid £119,500 for it in July 2005.
As we had very little for a deposit, we took out a 30 year 100% mortgage with Standard Life, fixed for 3 years at 5.3%. This means we're currently paying £697 a month. This deal obviously comes to an end in September 2009 (I like to plan in advance!)
My worry is that when it comes to an end, we won't have paid off enough of our capital to be able to offset any price fall so we won't be able to re-mortgage and so we'll be stuck on the miserable standard rate. I should say that we didn't over stretch ourselves for the mortgage; we could afford (but not comfortably) to pay the standard rate if necessary but I certainly don't want to!
Any advice? I have this nightmare that I'll end up paying all of my money for a mortgage on a house that's worth !!!!!! all!
0
Comments
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Start overpaying on the mortgage to bring the ballance down. This is your best bet, you may find by 2009 you will need a minimum 10% equity for a remortgage0
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If you can't overpay because of penalities then save some money into a savings account that you than then pay off some of the debt when the fix expires0
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