Fixed rate ending - neg equity

M

Mackemdub

Registered User
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Hi all,

Newbie here.

I have a current 3yr fixed mortgage with Haven (EBS) which expires in mid July 2011.

Trying to assess my options early to do some budgeting as a baby is on the way.

I'm guessing the LTV is now up around 130% (ouch!).

30yr term. Current rate is 5.18%, fixed just before ECB rates dropped (more ouch!). Seemed sensible at the time to help with forecasting expenses.

At the moment servicing the payments is fine, tough but manageable and no arrears or missed payments and it's our only debt. My worry is where things are heading to by July.

Switching lender not likely an option, fixed rates will either be gone or cost prohibitive, current variable rates are probably on par with our current payments but are only heading one way.

So, any thoughts on options?

Many thanks
 
According to the Indo today:

The bank has suspended the option of fixing for the majority of its customers. But some customers who are at the end of a fixed rate have a clause in their contract that states they must be offered a new fixed rate after their current fixed period ends.

They will be offered 8.75pc if they want to fix for five years, a rise of 3pc from the rate offered the last time.

The two-year rate will rise from 5.25pc to 7.25pc. The seven-year rate will go from 6.1pc to 9.1pc, for those who have a 20-day option to fix again
Click to expand...
 
Gee, this aint looking good. Its hard enough to make the payments each month and now the banks are putting up the interest rates. Is this a definite? I really hope not. I just wonder how many more people are struggling like me. I took a hit of 881eur with all these new taxes this month and my job is shaky at the moment and interest rates creeping up, petrol up, etc. I really dont think I can last to the end of the year with all these debts and taxes. Would love to do a survey to see how many people are actually in financial trouble. Would luv to hear your thoughts!
 
Yeah, everything just seems to be going one way, and unfortunately it's all the wrong way.

We've both had between 10% & 15% pay cuts and taxes have gone up considerably since we bought the house/took out the mortgage. Fortunately my job is relatively stable (or as stable as it can be in this environment), there are lots of people much worse off and i really feel for them.

With a baby on the way our living expenses are going to be rising even further. The mortgage is our biggest outgoing and we're really going to struggle if the monthly payments go much higher.
 
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