LVR & re-mortgaging - really worried

dimbo61

To everyone stuck on there lenders SVR which for some is better than the deals they have just finished all I can say is
OVERPAY,OVERPAY and just in case you missed the message OVERPAY
Savings rates are dropping all the time and overpaying increases your equity in your home and reduces your LTV.
As MarkusW MD has said Nationwide allows you to draw back if you need to but check with other lenders.
If your mortgage payment has gone down contine at the old monthly payment and overpay as well GOOD LUCK TO ALL

CynicAl_3

Pinky15 wrote: »

Do you know I am so cross had this situation today. We want to borrow an additional 12000 on our mortgage. This is too do a kitchen extension and utility which in time will add value. Our house is worth around 125000. Houses in the next terrace are selling for this they are 3 bed and ours is 4 bed. At the mo we owe 63000 on our mortgage which means if we sold at that price we would have 63000 equity. We also overpay maximum 20% per month. I phoned up and was told yes we can have the money they could do a tracker rate at 3.55% great yes we will have this. No wait she said because of the amount we are borrowing we will have to go on the 4.5% tracker. After going throught the application process the lady spoke to the valuations team who told her our house was worth 92000!!! I don;t think so houses are selling still around here!! So she then said this take us over our LTV limit and our only options now were 2 and 5 year fixed rates at 6.9% and with £999 fees we have to pay upfront. I am fuming now!!! Its has gone from 3% up to nearly 7% and they want £999. we thought it would be cheaper to stay put and extend rather than move - but really don't know what to do!!!!!

If you've been overpaying your mortgage, can't you borrow the overpayments back within your existing mortgage arrangement without incurring charges or initiating the valuation procedure? Might be worth seeing how much you've overpaid and coming at it from that angle.