Switching mortgages

B

Breffni12

Registered User
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14
i am just coming out of a 2year fixed mortgage and the interest rate im getting quoted from my bank is 2% higher which is a big increase for me. i have tried other banks and am not having much luck, one bank says I must own 80% of my home, I only own 90% and giving the exact same details I gave my bank 2 years ago (when I got a 92% mortgage of 200,000) I am only being offered 90,000 max now(this is from a number of institutions). how can this happen in such a short time. does it mean my bank were crazy giving me the money in the first place or are all banks being extremely cautious at the moment?
have I any other options or do I jus have to pay the higher rate to my bank because I cant avail of other banks' lower rates.?
 
Breffni12 said:
I only own 90%
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And probably falling given current property market conditions?
how can this happen in such a short time.
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Have you not been reading the newspapers/listening to the news lately?
does it mean my bank were crazy giving me the money in the first place
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Impossible to tell without more info about your overall financial circumstances - e.g. what percentage of net income goes on mortgage repayments? What term is your mortgage over?
or are all banks being extremely cautious at the moment?
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Yes.
have I any other options or do I jus have to pay the higher rate to my bank because I cant avail of other banks' lower rates.?
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Have you tried other lenders in person and not just online calculators and the like? It may well be that in practice you simply cannot switch right now.
 
I suspect you only own 10% in reality (and falling as clubman says).. and had to borrow, like the rest of us the other 90/92% when originally purchasing, most lenders at present will only lend 80% of the value of the property on a re-mortgage or apartment purchase, and up to 92% on a new house purchase.
A fixed rate 2 years ago would be perhaps about 3.8%, you will be doing well to get even 5.8% with your current Loan To Value etc..
 
I think u may be right. I have tried a number of lenders in person and was told i do not qualify for a mortgage with them.my morgage up to now was approx 1/3 of my net monthly income.with the mortgage rate rise it is now going to be half of my income.to be honest i was very surprised when i was refused. how are people buying houses at the moment or even getting mortgage approval at all.i am in a secure well apid job with only a car loan and no missed payments and i cudnt even get 100,000 approved.wil just hav to sit tight for a couple of years and hope it settles down.
 
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