Equity support scheme for Cheltenham & Gloucester mortgage holders.

If you have a Cheltenham & Gloucester mortgage and you are finding it difficult to move because of reduced equity in your existing property, you may qualify for an equity support scheme.

Finding a good deal may be harder if you have little or no equity but there are still options available. If you need advice contact us at Deal Direct.

We all know the difficulties faced by first-time buyers but if you have already bought your home you may still be in a difficult position if your equity has been reduced. Prices have generally fallen since 2008 so if you bought a property in the market boom you may have lost some of the equity in your home making remortgage more challenging.

Changes to lending criteria for mortgages mean that if you already have an interest only mortgage and want to move, your options are much reduced. For example, if you want an interest only Cheltenham and Gloucester mortgage, a minimum of 25% deposit is now required, and this is now the minimum requirement of many lenders.

There has also been a big reduction in the approval of interest only mortgages. Figures from the Council of Mortgage Lenders suggest it has dropped from over 250,000 approvals in 2007 to just over 50,000 in 2011.

Without a 25% or more deposit you may have to meet tougher lending criteria or convert to a repayment mortgage. If there is little or no equity in your existing home you may find it difficult to find a deal that will allow you to move.

An equity support scheme, such as the one if you have a Cheltenham & Gloucester mortgage, could allow you to transfer your existing mortgage to a new property. Some other banks and building societies have similar schemes and in some cases you can qualify even if you have negative equity.

At Deal Direct, we know the lending criteria of different mortgage providers and we can find the best deal that suits your situation, so give us a call for advice.