really stupid re-mortgaging question

L-M

I am so sorry to be so dense about this, but I thought this would be the best place to ask:o

Our mortgage deal is coming to an end soon and we want to switch lender if we can. I was just browsing the mortgage deals on the natwest sight but something has confused me.........................

It has next to the rates a minimum deposit amount, now is the the amount you put in in cash when you remortgage or is the the difference in amount between how much the house is worth and how much the mortage is for????

Sorry, told you I was dense:o

_Andy_

Nothing stupid about that.

The answer is the second option - also known as the 'equity' in the property.

minimike2

NatWest will be reducing some of thier rates next week, so I would hold out doing anything until then if you specifically want your mortgage with them.

sarah_elton

_Andy_ wrote: »

Nothing stupid about that.

The answer is the second option - also known as the 'equity' in the property.

When you apply, the lender will do a valuation survey - just as they did when you first bought the house. That will determine the house value. Only thing to be aware of is that surveyors seem to be coming up with quite low valuations, to reflect the falling market. Use a very conservative guess at your house value when thinking about which mortgage to apply for.

L-M

Thank you all so much for your helpful replies

I am very relieved by your answers:rotfl: I will just hope for a decent valuation now!

becs

Sarah,

Good point well made although would say at the moment even a conservative guess will be higher than the valuations! We're remortgaging at the moment and the valuer we had out last week was absoloutely ridiculous! I'm not one of these people who is naievely thinking their house is different to everyone elses and has gone up in value but based on what virtually identical properties have SOLD for in the past couple of months, they undervalued ours by £35k! The only difference between ours and the properties that have been sold is that ours has been completely refurbished in the past year so brand new kitchen, bathroom and redecoration as well as adding a beautiful 20' conservatory so I guess doing all of that devalues your house massively! Or could the sceptic in me say it's the valuers trying to stitch people up! We're right on the cusp of 40% equity literally our calculations mean we own 44% but his valuation says 33%, surprisingly they offer the best rates to those with 40% or more!

Becs