Re-mortgage question

[WildGoose]

The scaremongering has started already, in that the economy is on the turn and mortgage interest rates will start going up.

This in turn is making people panic about mortgages thus increasing demand, and the banks are seeing it and whacking the rates back up, self fulfilling prophecy.

There was me looking forward to a year or two of low rates, and no sooner am I out of my fixed rate, and onto the variable it looks like things are gonna be getting expensive again.

Looking at the product pages of the mortgage companies, the value to loan ratio is a lot more expensive than it was when we got the first mortgage.

We had a 5% deposit then, so affordable, now the lowest you can get is 10% (meaning a shite rate of over 6.5%) most are 25% for the decent fixed rates.

My question is;
Do they insist on a deposit like this every time you re-mortgage, given that our house must be the cheapest end of the SE housing market, I can't see how any normal person can save for a 25% deposit every few years when it comes to re-mortgaging time, whilst paying the mortgage every month as well.

There are 15 year fixed rate deals about, and I want one. I'm tired of worrying about where this pit of money is going to come from every single month, getting shafted (via interest rates) at the whim of irresponsible people gambling without consequence. We have some equity but not a lot, and if this means getting together 30 odd grand then i'm sunk.

My naive outlook on life tells me it can't possibly work like this everytime you want to re-mortgage, so i'm wondering if those veterans of mortgages could enlighten me a bit.
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[arry]

You won't forever be having to come up with the deposit - it's just at the moment where your house price has fallen away from what you've paid for it.

In years to come, you'll be looking at having 25% upwards equity so you'll not need any deposit when you re-mortgage, because they just secure what you borrow against the house, which is worth more than what you're borrowing.

Make sense?

[Kwaks]

As above, equity counts as deposit
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[iooi]

No deposit will be required, but you will have to have house revalued and at the moment many re-mortgages will have to be under 75% of house value....

I would hold fast and see what happens. Many people jumped to fixed rates a couple of years ago and are now kicking themselves as the rates dropped like stones.

At the moment if you have any savings at all, look to get a offset deal if you can.

Beaware than if you are in a fixed term now, and want to leave early. There may be heavy penalty clauses, that wipe out any saving you may have made.
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[ash t]

Stick on variable for a bit to be honest. What does your existing lender have on offer??

Rates are going to stay as they are for 12+ months yet..theres alot more work to do before the BoE starts raising the rates.

Lenders are putting their rates up because theres been some scaremongering going on. As soon as this subsides, the fixed rates on offer will soon come down.

If you are looking to fix, see what your lender has on offer. If they tell you that you dont have enough equity, tell them bollocks and raise a complaint. tell them that they are not increasing their risk by letting you fix your mortgage with them, its actually doing them a favour by keeping your custom. This would also mean they are not being fair to you, which is a big No No with the FSA at the moment. You wont be able to negotiate rates, but im sure you can negotiate their willingness to fix your mortgage again.
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