FTB, end of initial Variable Rate in sight, what to do...

muddyfox470

All,

I was fortunate enough to purchase a property in November 2009, cost of property was £94250, and I took out a 90%LTV mortgage with my bank, Natwest for a 35 year period (keep prices low whilst I have been doing up the house).

With putting new almost everything (CH, Electrics, Kitchen etc) the value currently stands at £120,000 to £135,000 [dependent on who is valuing it].

Sticking with the most pessimistic valuation, 120k, I should be able to get a mortgage with a LTV of 70% (allowing for the fact that there is approx £83000 left to pay on the mortgage).

I would ideally like a long term fix, 10 year?, with minimal fees, but would also like to see minimal transaction costs (remortgage and product fee).

A variable could also work, and would be cheaper, as I would hope to look at changing the mortgage from 35 years to 25 years now I'm a little more settled.

Current rate on my variable with Natwest is 4.69% making payments approx. £412pm
What products could suit me best, is it best to approach a broker that may charge a fee to find a mortgage for me, or is it just as likely that I can find the same mortgages searching around on comparison sites?

I would look to pay between £500-£550 a month, ideally I would like a fix for confidence in payments, but if it means that I can pay off the mortgage much quicker having a lower % rate on a tracker/variable then I would be happy to go down that route.

Any help would be much appreciated. :beer:

beecher2

Who valued your house at 120k - 135k? It sounds like it could be overly optimistic to hope that CH, electrics and a kitchen would make that big a difference. Also, are you sure you've paid that much off - I take it you've been overpaying? Double check your figures before going any further.

muddyfox470

Thank you for your reply!

I should really have said complete renovation, which included CH all new electrics and networking; considering it was a repossession I think 120000 is a conservative estimate.

83000 is the mortgage remaining from the initial 85000 (90% of 94250) after approx 18 months. Sorry 82k was a slip of the finger.

I've just been messing with MSE Mortgage calculator and think I will go for a low rate and overpay like crazy (provided the bank allows it fee-free). Will be getting some estate agents in shortly to see their views on sale price.

dimbo61

Have you looked at offset mortgages that way you can build up savings while offsetting the savings against the mortgage debt!
FD have some of the best trackers and YBS do some good long term fixes including a 5 year offset fix at 4.59% fee £95