How quickly can I remortgage?

alfie-gee

I am in the process of buying a property at a below market value price.

The current mortgage I was looking at is a Fixed Rate 2 year deal based on a 90% LTV.

However, based on the Home Report valuation done recently, if my LTV was based on the valuation (as opposed to the purchase price) then my LTV would be 79%. This would obviously make a huge difference to my monthly payment - I have calcualted around £400 per month (£9600 over the two year period).

What are my best options here? Am I right in thinking the only way to benefit from this is to remortgage?

Should I take out the Fixed Rate 2 year deal at 90% LTV then remortgage as soon as possible and stump up the penalties? Are there fixed rate mortgages with low or no early exit penalties?

How quickly can I remortgage? I have heard 6 months is the guidline but is this always the case? Ideally I would like to remortgage ASAP?

Should I take a variable rate mortgage with no exit penalties and remortgage at the earliest opportunity? The risk here being rates go up or the valuation goes down and I get caught out and cant get my existing fixed rate price again?

How long does a home report valuation last anyway?

What is the worst case situation for interest rates in the next 6 months?

Any advice would be much appreciated!!

regards

kingstreet

If/When you remortgage, the property value will be based on the lender's surveyor's opinion at the time and will not be influenced by the earlier report, unless it just happens to be done by the same surveyor.

It will be six months between you buying and remortgaging.

As to the fix + penalties v variable + penalty-free argument, no-one has a crystal ball, so impossible to call. If it was me, I'd go for the latter, but that's just for personal preference. I don't like paying fees to lenders for nothing.