You ask the mortgage expert

Mortgages are part of Pat Bunton's central nervous system

Pat Bunton, from London & Country Mortgages, has an inordinate number of brain cells dedicated to mortgage matters. Our viewers put those neurons to good use in our latest 'Ask the Expert'.

As usual, click on one of the questions in blue below to skip straight to that answer, or scroll down the page to read them all.

VIEWER QUESTIONS

I have been trying to get guarantor mortgage to help my daughter buy her first property. Is this kind of mortgage still available?

Since my fixed rate deal ended, I have switched to a temporary job. Will a lender look at my temporary status and refuse to remortgage?

Should I sign up for a 10-year fixed rate deal, or do you think I should wait and see?

I've heard house prices still have a further 20% to drop. Is it worth holding out for this as a first time buyer?

Are any lenders offering buy to let mortgages? What loan to value do they offer the best rates on?

I can get a mortgage because my lender has increased their age limit to 75. Is this a good way of releasing equity?

I have a high household income, but need a mortgage with a high loan-to-value of 90% or 95%. Can you recommend any lenders with competitive rates?

My daughter's fixed-rate deal ends in December. The value of property has fallen since she got the mortgage. Is her lender obliged to offer her a follow-on mortgage without imposing draconian terms?

I have been trying to get a guarantor mortgage to assist my daughter as a first time solo buyer. Abbey told me they were no longer available. Is this type of mortgage still available in the current lending climate?

Many lenders have tightened their criteria substantially in the past year or so. This has been due to the credit crunch impacting some lenders' desire to lend in any perceived higher risk areas like guarantors. Many lenders will still consider guarantors so really it is a case of shopping around and a good starting point would be two of the state-supported banks Northern Rock & RBS - but be aware that their eligibility criteria can be quite tough.

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I took redundancy a while ago and I'm now in a temporary role earning slightly more than before. During this time my fixed deal ended and I'm now on the standard variable rate. I'm nervous to apply for any deals I see in case I'm refused a mortgage because I'm temporary still. What should I do?

Lenders in today's market will require you to be in a permanent position, or be able to demonstrate a prolonged uninterrupted period of working for an agency (typically 12 months or so). This is because a mortgage is a long term commitment and they want to see that it is affordable to a borrower in the longer term. Although switching lender might be difficult you should still ask your current lender what they can offer you - as most will have a range of existing customer deals.

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I'm about to sign a 10 year deal with the Coop bank at 5.29% for 10 years but I keep hearing about a mortgage price war on the horizon. Do you think I should wait and see?

Who knows where interest rates will go over the next 10 years and to be honest the only thing we can say with any certainty is that they won't stay at their current historic lows. The idea of a fix is to gain certainty and remove the worry or risk attached to monthly payments changing as Bank of England Base Rate moves. It will only be when you look back in 10 years time that you will be able to see if variable or fixed was better, but the fixed route does look good now (against historic rates) and will give you peace of mind.

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I read an article recently advising that house prices still have a further 20% to drop. When do you think this will happen? Is it worth holding out for this as a first time buyer?

If I had a pound for every doom monger's prophecy of falling house prices I would be a rich man. No one can say with certainty if house prices will fall back from current levels, but the fact remains - we are an overpopulated island, with a shortage of housing supply and that would normally help to underpin house values. In today's uncertain times there are fears that rising unemployment and repossessions might fuel falls, however for every analyst saying that there are many others saying that the outlook looks brighter. If you are looking at property as a short term investment your risks are far higher than if you are looking over the longer term, when one would reasonably expect property price inflation, rather than deflation

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Are any lenders out there offering buy to let mortgages, and what loan to value they offer the best rates on?

There are still lenders out there, not as many as a year or two ago, but nevertheless they do exist! Lenders still playing in this market include Coventry BS, The Mortgage Works, C&G & Birmingham Midshires - they typically impose a maximum loan to value of 75% at best, but the best rates are generally below 60% LTR. Just be aware that lenders in this area have ratcheted up their typical arrangement fees, which can now account for 2.5% to 3.5% of the amount borrowed - so when you shop around look at both the rate and the size of the fees.

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I recently discovered that my mortgage provider would be applying an age limit of 75 for any new mortgages. At some point in the future I plan to downsize but I would still like a mortgage. This would allow release of funds. It would seem that my only course of action is equity release but financially this does not seem to make sense. Is this my only option?

You could shop around as not all lenders have a maximum age restriction, although they are becoming increasingly the norm. At any time you can sell and it is impossible to predict now which lenders might allow a future mortgage for someone over the age of 75. Equity release is an option, however we would suggest that is typically a last option as opposed to the first one. A relevant consideration will be to see if you have sufficient pension income in order to support any proposed mortgage, but lenders are becoming increasingly nervous about lending into requirement, in large part due to regulatory question marks over the sense of it.

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I am looking to secure a mortgage in 2010 with a good interest rate. I have a relatively small deposit yet a household income of over £110,000. Can you suggest any mortgage lenders that offer a 95% or 90% LTV mortgage with competitive rates?

The reality is that very few lenders will lend at 95%, or even 90% and they all reserve their best interest rates for 75% or lower customers. Those who can consider 95% are Yorkshire & Clydesdale Banks at 6.99% fixed for 5 years, which is substantially higher than the best 5 year fixed rate of 4.99% from Newcastle (max 75% LTV).

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My daughter's two-year mortgage fixed-rate deal comes to an end in December. During this time the value of her property has fallen therefore her LTV % has increased. Is her mortgage provider obliged to offer her a follow-on mortgage without imposing draconian terms? I should add that her payment record is first-rate.

Almost all lenders will offer existing customers like your daughter a variety of options, but they are under no legal obligation to do so. Where the LTV is higher (80%) then the chances of remortgaging elsewhere for a better deal are likely to diminish. Her first port of call should be to her current lender and then she should compare those offerings with anything else available from other lenders.

The views expressed are those of Pat Bunton not the BBC.