re-mortgage question!

lukese

hi folks.

some may think that im worrying a bit to early but im a bit of a paniker.


me and my partner bought a flat last november, if only we could have seen six months into the future! we got a 100% mortgage as we decided we would use out savings to get all new furiture, carpet, decorate every room bla bla bla, really wishing would have wacked down a deposite and at the same time pating my self on the back for not listening to the finantual advisor who was trying ot convince me theres nothign wrong with taking 125% mortgage! glad i didnt see the attraction of that!.

anyway my worry is as follows i took out a 100% mortgage as stated above, when my two years runs out for my discounted rate would i have paid of enough to have qualified for a new mortgage on the property at a discounted rate, ie have the 5-10% in equity??

am i right in thinking as well that if the property goes down by say 10k and i have paid of 10k i would be after another 100% mortgage?? as it would require a new valutation and they would value it at x amount and work out what i have paid of and so on?

i pay 1095 a month at the minute on 178000 @ 6.01% how much would i have paid of in two years? anyone know? and if you could show workings id be greatfull, i can do nothing about the property prices going up and down but i can make sure that i have done enough on my side to pay/over pay enough by the time i come to renew my mortgage.


sorry if none of it makes sence if it doesnt please say and ill try and re word.


Many thanks in advacen


Luke



forgot to add the mortgage is over 30 years

lukese

just done some rought math work and im guessing that

178000/30 years gives me 5933

two years = just shy of 11k which is more than 5% less than the ten i would like but this doesnt take in to account any intrest incurred also i just remmebered that the 100% mortgage was based on a loan also that made up the 'deposite' so does that mean that as long as i keep paying the money for that part of the loan on that part of the mortage can i switch the other part which would give me more than 10% i recon.

tinkerbell84

:rotfl:

you will owe around £173k after 2 years.

it's not a straight line deduction. checkout this snowball calculator - it shows you what your balance is each month.

http://www.whatsthecost.com/snowball.aspx

tinkerbell84

so unless your houseprice increases substantially over the next 18 months you won't have made much at all. paint and furniture won't increase the value by the amount you need.

you need to start overpaying that mortgage every month. at the moment you're paying around £900 of interest a month and £100 off the debt.

lukese

did you read my theroy about the loan part? i assumed i was taking out a 100% mortgage, but it was a two part mortgage? a personal loan and the rest mortgage, so when i come to remortgage will i have to setel the personal loan at that time or can i carry on paying the personal loan part and settle the mortgage bit?