Mortgage Query

lukem30

i was thinking that i may stuggle to find a good new deal as the LTV is poor, i bought the house for 105,000 and still owe 95,000. How do mortgage companies establish a value for your home when you want to re-mortgage? what i mean is - how do i know which deal i can go for looking as LTV restrictions? will i have to have the house independantly valued? thanks for your advice

dimbo61

You need to check what your rate reverts to when the fix ends!
Now its not worth paying a 2% ERC fee to finish the deal early as they will not allow you to go onto the BMR or SVR and with a LTV of 90/95% you will struggle to even get another mortgage with another lender .
So stay on your current deal and ask them to keep your payments static come june 2011.
When you go onto the BMR/SVR you can overpay as much as you like with no restrictions and build up the equity in your home. GOOD LUCK

JimmyTheWig

lukem30 wrote: »

How do mortgage companies establish a value for your home when you want to re-mortgage?

They'll do a valuation based on the current market.
If you want a rough guide you could look at www.zoopla.com.

But as has been said, don't agree to any change that means you have to pay the early repayment charge.
And don't agree to any change at all unless you know the implications, as I would suspect staying put is the right answer for you...