Interest due to kick in next year, fixed into my mortgage for another 2 1/2 years.
Before this kicked off, I was overpaying the mortgage and planning to remortgage next year (and take the penalty for jumping from the fix), increasing the mortgage to repay H2B. The LTV would have been just under 75%.However, I’m not sure now!
If house prices fall, so does the amount I pay back. If they fall even 10%, I’ll owe less than I originally borrowed. I know in theory they have to accept it, but will they wriggle out of that somehow? It just seems mad to me that they didn’t say ‘20% of the value or what you borrowed- highest’.
I’ve stopped overpaying now and am saving the money instead. I reckon I could save approx half the amount owed by next year- could I remortgage and increase for the other half? I don’t think the LTV would be too bad, but did hear it’s only 60% offers at the mo?
Or should I carry on overpaying? Just wondering what other me would do in this situation?