Remortage Advice please...

webrits

I'll try and keep this concise as I appreciate there's many posts looking for advice...

Our tracker mortgage with the Halifax finishes end of Nov.
Our current interest rate is 0.24% (-0.26% on the BoE)
We owe 132k
In Dec we will revert to their SVR of 3.5% (can vary 2-3% above BoE, currently +3%)
Halifax have valued our house at only 115k supposedly based on local prices but we're fairly confident that this is a ridiculously low valuation and if we request a re-valuation visit (£108 charge) it will be closer to 150k giving us an LTV of 90% or better.

Halifax are offering us the following remortgage deals (based on a 90% LTV)
2yr fixed 4.89% (+£999 fee)
3yr fixed 4.99% (+£999 fee)
3yr Tracker 2.49% above BoE (+£1249)

If we're in negative equity they're offering a 2yr fixed @ 5.19% (+£999 fee)

Any advice on what best to do would be greatly appreciated.
I'm thinking that because we're possibly on the borderline of a 90% LTV that we should hang-on with the SVR and hope that house prices rise more while keeping an eye on the interest rates???

Many thanks in advance.
Paul

Cannon_Fodder

Seems like high fees for an existing customer re-mortgage...

How about overpaying while the rate is still very low - work out what you would pay at 5% and make the difference the overpayment so you are getting used to that level...it could help the LTV...

How about shopping around, beyond Halifax? They are hardly trying to win your loyalty with those fees...

The problem with hanging on, hoping that price rises help your LTV, is that autumn/winter could see a fresh downturn in prices...maybe not solidifying the "ridiculously" low valuation, but not getting the £150k needed, either.

If your terms allow a substantial lump sum over-payment, that could be necessary in such a situation.

webrits

Thanks for that .