house price crash and remortgage deals???

Pygmymonkey

People say that if house prices are going down then you have only lost money on it if/when you come to sell it.... Well what if you need to renegotiate a new mortgage deal (of which there aren't any good ones anymore)

My situation is this:

I have a 5 year fixed rate (5.57%). still got 4 years left on that deal. Mortgage was for £85K over 25 years. House value was £95K (10% deposit)

So after 5 years i will probably have paid off somewhere in the region of £7K (these are just approx so bare with me on this)
If however the forecast house price crash makes my house worth only £77K and i want to get a new mortgage deal it means i now don't have a depostit and will have problems getting a good deal (or getting anything at all!)
Slightly worse scenario is that my house is worth less than what I owe and i want a new mortgage deal, what are my options???

I have also worked out that slight overpayments now would drastically reduce the captial I owe, so at the end of 5 yeas i would be in a better situation to negotiate a better deal. Is this something people would advise???

Thanks for your advice in advance.

ixwood

Yes, remortgaging is an issue too. This is frequently mentioned also, but admitted not as much by the "it's a home, not an investment (ergo it doesn't matter if i waste 50k)" brigade.

The answer is as you say, overpay/save, overpay/save, overpay/save in preparation. Which is a generally good move regardless as you'll save a packet in interest anyway.

Dan_Collins_2

A lender told a guy in the office that jusr about every val they had last week down valued by 20k ish. I think he was talking to Nationwide.