How to proceed for Remortgage ??

sdd7677

Hi,
I have 3 years fixed rate mortage which ends June 2011. ERC at current date is 792 pounds. I was checking remortgage rate and HSBC offering 5 years fixed rate at 3.99% for 60% LTV. I have current balance of existing mortgage 135000 pounds ( house value 185000). I can put around 25000 towards new mortgage/existing mortage to get the LTV 60%. When I checked with HSBC on the phone, they can not give me remortgage quote on the phone as my LTV is not 60% at present.

The question is how do I use 25000 pounds to get such deal as I don't have LTV 60% but I can make it up using the available fund.

Do I have to pay 792 pounds(as ERC) and 25000 pounds to HSBC first of all to bring my balance to 110000 (that is 60% LTV), am I correct?

I would appreciate any suggestions.

dimbo61

If you want to change lenders before you fix is up then your going to end up paying the ERC and you also need to bear in mind thats HSBC or any other lender would have to have there own valuation of the property in todays market ! so value may well be below the price you think its worth.
I would stick with your existing lender and check if you can overpay now!
You have only got 7 months left on your current deal.
What does the mortgage revert to at the end of the fix ?

mortgagemike

You can remortgage to a new lender at 60% LTV with no worries there. Your new mortgage wouldn't be able to complete until you have paid your £25,000 to your solicitor and your solicitor receives the mortgage advance from the new lender. At this point they will clear your existing mortgage with the HSBC and your new mortgage will be at 60%.

You would of course be liable for the ERC if you decide to change lenders.