Right approach for remortgage

sdd7677

Hi,
I am remortgaging first time. I hope experienced people can throw ideas.

My 3 years fixed with HSBC expire in June and current LTV is 72% (based on the price that I paid for house 3 years ago). I would like to put 25K towards mortgage to bring LTV 60% to get life time tracker deal with HSBC. As my fixed period due end of June before reverting to SVR(which is 3.94%); if I pay any money before that I will have to pay ERC which is about £150.

How can I avoid ERC and secure life time tracker deal as well?
Will they carry out valuation before offering me new deal ?

Any ideas welcome.

beecher2

You're looking for a new deal rather than a remortgage as you're intending to stay with your present lender. Phone them up and ask if you can book the deal and begin it when your present deal expires, but be aware that they will revalue the house and it will likely be valued lower than the price you paid for it. When you speak to them on the phone they will tell you what deals they're prepared to offer you - haven't they been in touch by letter?

sdd7677

beecher2 wrote: »

You're looking for a new deal rather than a remortgage as you're intending to stay with your present lender. Phone them up and ask if you can book the deal and begin it when your present deal expires, but be aware that they will revalue the house and it will likely be valued lower than the price you paid for it. When you speak to them on the phone they will tell you what deals they're prepared to offer you - haven't they been in touch by letter?

I am informed by the bank letter that rates are reverting to SVR. I want to decrease LTV to have better deal.

beecher2

sdd7677 wrote: »

I am informed by the bank letter that rates are reverting to SVR. I want to decrease LTV to have better deal.

Phone them up and see what they value your house at, and how much you'd have to get the mortgage down by to have an LTV of 60%. Be aware that it is likely to be more than 25k as house prices have fallen in the last 3 years.

sdd7677

beecher2 wrote: »

Phone them up and see what they value your house at, and how much you'd have to get the mortgage down by to have an LTV of 60%. Be aware that it is likely to be more than 25k as house prices have fallen in the last 3 years.

Thanks Beecher, I have kept some more money on side to cover that. I am going to see mortgage adviser today. Fingers cross.