changing to a better deal

ads910

so rang up to see if i could change the deal im on as i can reduce my apr by nearly 2% if my property is valued at a sensible price, unfortunately that wasnt the case as the halifax house price index values my property at well under what the house ARE selling for. my property is a 3 bed semi, the price they valued it at over the phone was less than what the 2 bed terraced properties are selling for. so what im wondering is if i pay the £250 for a valuation are they likely to be sensible with the valuation. Dont get me wrong im not expecting them to be like the estate agents and tell you the property is worth double what it really is just to get you on their books.

so these are the details.

mortgage outstanding inc penalties is 140k
id like to say the property would get valued at 190k

currently 18months in fixed at 5.99 for 5 years

opinions4u

ads910 wrote: »

so rang up to see if i could change the deal im on as i can reduce my apr by nearly 2% if my property is valued at a sensible price, unfortunately that wasnt the case as the halifax house price index values my property at well under what the house ARE selling for.

A key point here is what are they selling for? Not what are estate agents putting them on the market for.

so what im wondering is if i pay the £250 for a valuation are they likely to be sensible with the valuation.

Only one way to find out. Another option would be to remortgage to another lender with a fee free deal.

ads910

advertising at 200k 195k selling at 185k

had estate agents try telling me my property is worth £200k but im not a mug and i know it wouldnt sell for that, not like many people that take an estate agents word as gospel.

interesting point about going to another lender with a fee free deal i think that may be my next point of call.

what i want it valued at to get the deal i want is 190k but i dont think they will hence why i dont want to pay the £250, throwing away money if you like.

im very confident that it would be valued at 180k maybe 185k

Yorkie1

Don't forget that there may be an early repayment charge as you're only 18 months into a 5 year mortgage - needs to be taken into consideration when calculating any savings etc

ads910

yeah i know that, including the charge to pay it off will be 140k

somethingcorporate

ads910 wrote: »

yeah i know that, including the charge to pay it off will be 140k

That actual value of the ERC is important when calculating whether the 2% drop in rate will actually be worth it. 2% on £140k mortgage is £2,800. Hardly a worthwhile saving if you pay £10k ERC to access it!

ads910

ERC is less than 5K basically by changing to a sub 4% mortgage i can save almost £150 a month. i intend to over pay by £150 each month which my mortgage allows which will inturn take 5 years off of my mortgage so i think it would be very worthwhile.

somethingcorporate

ads910 wrote: »

ERC is less than 5K basically by changing to a sub 4% mortgage i can save almost £150 a month. i intend to over pay by £150 each month which my mortgage allows which will inturn take 5 years off of my mortgage so i think it would be very worthwhile.

5,000 / 150 = 33 months to cover the ERC excluding interest on it so in total will be ~3 years before you break even, before taking advantage of any reduced rate.

Unless the new deal is fixed for 5 years or longer this would not be something I would consider. Use any spare money that you now have to pay down the existing mortgage.

kier333

ads910 wrote: »

so rang up to see if i could change the deal im on as i can reduce my apr by nearly 2% if my property is valued at a sensible price, unfortunately that wasnt the case as the halifax house price index values my property at well under what the house ARE selling for. my property is a 3 bed semi, the price they valued it at over the phone was less than what the 2 bed terraced properties are selling for. so what im wondering is if i pay the £250 for a valuation are they likely to be sensible with the valuation. Dont get me wrong im not expecting them to be like the estate agents and tell you the property is worth double what it really is just to get you on their books.

so these are the details.

mortgage outstanding inc penalties is 140k
id like to say the property would get valued at 190k

currently 18months in fixed at 5.99 for 5 years

When i spoke with my mortgage lender the other day about my ltv they told be that it was 82%, i said shame as i wanted to fix for 5yrs and only one option is to be at 80%ltv, the guy said that they have 3% discrestion and as i cannot fix until the 17th Jan call him up and providing there has not been any big changes and bearing in mind this was a week ago so not lightly i think then i could fix at 80%ltv. This was HSBC which i thought was really good. Is it the norm or are HSBC just being nice?