Mortgage Decisions...Shall I fix...

itcouldbeyou · 22 January 2011 at 12:31PM

I purchased my brand new house with a brilliant sized garden in 2007 for 250K with a 10% deposit. I initially had a 5.8% fixed rate repayment mortgage for two years. As this finished my rate dropped to 3.99% standard variable at the end of the deal and I was able to pay extra when possible, as we also got a new member of the family.
Well due to media panic I have been looking to go back onto a fixed deal. Thinking I have now got below 85% LTV and can get an ok deal, I was shocked when my mortgage provider told me I have much less and my house has apparently dropped by 23K according to the consumer price index.
My provider does not accept independent valuations, what do people suggest?
My sister is looking at houses in my area and she can’t find anything as good as my house for £250k, hence leaving me to believe my house has not dropped anywhere near as much as 23k (although I am not deluded and understand it must have dropped some value).
What shall I do?
I can pay a 90% LTV at 6.99% but don’t want to be panicked into it (and to be honest want a cheaper one).

catieeb06 · 22 January 2011 at 6:18PM

Well what you can do is some market research yourself. Look on places like rightmove for similar houses in the same/ similar area's of your town and see what comes up.

When I worked for Halifax we used to work on their House Price Index, typically this meant that if people wanted to do a Further Advance or something like that, it meant having to get a valuer out in order to ascertain the true value and from there money would be lent (subject to credit check obviously)

Why not look to re-mortgage away from your current lender? A lot of re-mortgage packages come with free valuation and free legal costs so in essence, it won't cost you anything.