Remortgaging and valuations.

bardenuk

Looking for a bit of info here.
I have a 2 bed flat which I bought for 185k with a valuation of 195k which was obviously overestimated at the time.
With 180k left to pay on the mortgage and my fixed rate period now up it would be advantageous to swap lender as abbey have a poor variable rate ,around 4.6%, compared to other banks.
Im I correct in saying that by re-mortgaging most lenders would be looking for at least a 10% deposit/equity on the property?
This could be a stumbling block for me as I have a feeling that in todays climate the flat may get a catastrophically low valuation. Any advice anyone?

CloudCuckooLand

4.6% isn't too bad if you are in borderline negative equity. Even a 90% mortgage might be as much as 6%.

Save the re-mortgaging/survey fees and put them towards overpaying.

Reconsider in 6 months if you've got some equity.

_Andy_

Based on what you're saying, you'll be restricted to staying with your current lender.

brit1234

Your better off at the moment going to the SVR and overpaying as much as you can. I think you need more equity especially when the stats show prices have fallen 20% and what I believe fall a lot more.

Janyliz

We were in exactly the same position. Bought our house in Sept 07 for £235K with £35K deposit (reasonably large for that time). Had a 2year Abbey fixed rate at 4.8% which expired to variable last month. We assume that the interest rates will climb so thought it wise to fix again at this low point only to discover that no other lender would touch us based on the equity in the property. We were forced to stick with Abbey who would only offer us a 6.99% fixed rate! My advice, stick with your 4.6% and overpay, overpay, overpay!
We are overpaying as much as the mortgage terms will allow so that we may switch to another lender asap. For a number of reasons I wouldn't stick with Abbey if they paid me.............we'll may if they paid me!