Re-mortgage advice. Please.

[tiredemma]

We have been in this house since Feb 2011. Yesterday we returned from holiday to a letter from our current mortgage lender advising us that our current mortgage deal will be coming to an end on Sept 3rd- they also stated that they had sent a letter last month advising us of this (but we did not receive such letter).
We had thought that the deal would end in february 2013 as it was a two year deal, Obviously being the morons that we are we failed to acknowledge that the deal we had currently was offered to us in Sept 2010 but because it had taken us so long to move (due to vendors issues) - so therefore it is coming up to the end of our two year deal.

Our current deal was interest only - house is worth 205000 and we owe 185000 (so approx 90% LTV)

I am really at a loss as to what our options are- I am ware that there are very few 90% LTV remortgage deals out there - my credit history which was once good is a bit crap now so I'm worried about that also.

Any advice as to what avenues we should now explore?

Speak to your current lender to see what they can offer you, then go and speak to an independent mortgage adviser to see what they say. Also check with your current lender what their SVR is (which you will revert onto if you do nothing). The SVR is likely to be lower than any deals you are offered, but be aware that it's a bank managed rate so even if the Bank of England doesn't change it's rates, your lender can put it up at any time.

Also, if you change to a repayment mortgage there will be more options available to you, remember that on an interest only you are basically renting your house as you will still owe the bank the full amount of your mortgage if you don't have another way to repay it.

Thanks for replying- Im just waiting for them to call me back.

Try London and country brokers emma
Good luck

Our mortgage just reverted to their base variable rate when our fixed term ended. Great at the moment because that's 2%. Check that this isn't possible before you worry too much. The details should be on your original mortgage deal.

I would definately second the Independant advisor advice, we were in a similar situation and our advisor sorted it really quickly, and saved us money. I think their name was XL Financial, (well the company name iyswim, his name was actually Mark!) PM me if you want his details, I can probably find his card.

Thanks!!

managed to speak to them- we will revert to their SVR but have also arranged to start paying off some of the capital so that we can get down to 85% LTV

Thanks for all advice.

Thanks for offer of Inde number MrsZ- may need it in future?!