Got a great mortgage deal tonight..

gabyjane

We have our current fixed mortgage ending in August so have had our ifa round tonight to see what he can do for us. Our house is S/O so there is a good side to this and a bad although to us it is good as we are not planning on buying anymore at the moment.

Our house has gained £30k+ since we bought it almost 3 years ago so the bad news is it will cost us quite a lot to buy more. The good news is our new mortagage has come in at over £100 a month cheaper. We are now going to overpay and hopefully knock our interest right down which is great.

Have to say i was really dreading tonight tbh and very glad with the result!!

Thrugelmir

Are you sure its increased in price by that much? As I assume it will cost you less to buy the remainder if it hasn't?

gabyjane

Ill try and put it in terms that are easy as tend to go off on a tangent! Basically if it was valued at the same as what we bought it or lower that was good as we could have bought some more without incurring any fees. We decided though we are just going to really overpay the bit we have bought and deal with the rest when this deal ends. The other %'s are something we have hopefully sorted for the future so nothing to think about now anyway.

The house was £153k when we bought it and is valued at between £180-182k which i was quite suprised at as been here lass than 3 years. If we bought another % now it would be based on the value of the house making it higher and more expensive so it is overpaying for us while we can.

dimbo61

I would take the increase in value with a pinch of salt as most properties have not increased in value over the last 3/4/5 years.
Just had mine valued and same as I paid for it 5 years ago.
Better to overpay the mortgage you have now and pay rent on the rest until you can afford to buy the rest.
Bet the rent part is still cheaper than getting a mortgage for the other half!

maninthestreet

You havent told us how much the property cost almost 3 years ago, but £30K increase over the last 3 years is surprising - where is the property located, and who has valued it and told you of this increase in value?

gabyjane

dimbo61 wrote: »

I would take the increase in value with a pinch of salt as most properties have not increased in value over the last 3/4/5 years.
Just had mine valued and same as I paid for it 5 years ago.
Better to overpay the mortgage you have now and pay rent on the rest until you can afford to buy the rest.
Bet the rent part is still cheaper than getting a mortgage for the other half!

Hi thanks for the reply.

I am assuming it being valued at the figure they have given us is the value it is so not sure why to take with a pinch of salt? do you mean it has not gone up then yet it is valued higher? I have to say i was suprised although surrounding houses are a lot yet only one the same as ours recently sold for the same amount. We weren't interested as are not moving so in a way irrelevant!
I agree we are happy overpaying the mortgage until we decide if we want to buy more. The rent is so cheap if we buy our bit we are happy just renting the rest tbh .

gabyjane

maninthestreet wrote: »

You havent told us how much the property cost almost 3 years ago, but £30K increase over the last 3 years is surprising - where is the property located, and who has valued it and told you of this increase in value?

Hi sorry didn't really want to go into figures etc as with S/O it is sometimes confusing!
We bought it for £153k (will be 3 years this oct) and it has been valued at around £182k, i say around as the houses are all identical and the ifa thinks ours may be higher due to us having some extra bits done on the house which are minimal but still poss a couple of grand. The lowest he reckons is £180k and they will still use this as the lowest valuation anyway so we are still ok.
We are in the south and as i said the ifa has done 2 in the last 2 weeks on our road.

not_tonight_josephine_2

gabyjane wrote: »

Hi sorry didn't really want to go into figures etc as with S/O it is sometimes confusing!
We bought it for £153k (will be 3 years this oct) and it has been valued at around £182k, i say around as the houses are all identical and the ifa thinks ours may be higher due to us having some extra bits done on the house which are minimal but still poss a couple of grand. The lowest he reckons is £180k and they will still use this as the lowest valuation anyway so we are still ok.
We are in the south and as i said the ifa has done 2 in the last 2 weeks on our road.

from the parts highlighted in bold it sounds like it's the IFA who has given you this £180k figure? In which case it's not a valuation I'm afraid, just his estimate. The mortgage company will do their own valuation before agreeing to lend.

maninthestreet

A 20% increase in the last 3 years? That sounds a little optimistic.

gabyjane

not_tonight_josephine our ifa did yes BUT! ours is semi detatched unlike the other 2 valued which could make it at least the same but imo higher, like i said we have had some other bits done which he said they hadn't so again poss increase there. the houses are identical on the same road and one is a few doors away so at the end of the day i'm not sure what could make it change drastically? theres were done 2 weeks ago so? also being S/O they cap it anyway at an amount so if the worst case scenario is £180k we are laughing. Like i said it could have been valued ridiculously high and wouldn't make any difference as makes no odds to us.

Maninthestreet i agree a huge increase imo but then if you look back at my older posts i was always wondering why the houses near us (identical but bought ones) sold for £180k and ours was much lower? infact when i asked this last night to the ifa dh sighed as due to a house selling near us a few months back it bugged me as they have smaller gardens and are smaller spec etc. Maybe for once they underpriced ours? when we bought it was still a building site and we were the first to move in so maybe that affects it? It is now all landscaped and is surrounded by very pricey houses..who knows!