Remortgage??

mercurystar999

I received the dreaded letter from the mortgage company today! My rate has now risen to 6%, i have a £60,000 shared ownership mortgage with the Kent reliance building society.

Is it a right time to switch my mortgage? Is there a right time? We have had this mortgage for over two years and it was our first. As far as i am aware there are no redemption penalties for the mortgage, it was one of the selling points. We originally had a 100% mortgage for our 50% share.

We recently had the house valued by an estate agent and he valued the house at £160,000 which is £40,000 more than what we paid. If i re-mortgaged now would we be able to use part of the increase as a deposit thus being able to get a better mortgage deal?

Thanks

mercurystar999

Anyone have any ideas??

UK007BullDog

You can remortgage on your part and should do it quickly as I am quite confident that ther will be at least one more rate rise beginning of the year and another near the middle of next year.

There are some good deals out there so you should be looking at around 5.39% or less. Not too sure about shared ownership so cannot be more exact but I think the Leeds does shared ownership but do not know their rates.

mercurystar999

The deals do vary though for shared ownership. Will i be able to remortgage now and include a deposit, via the increase in the value of my property?

UK007BullDog

As you own 50% of the property I would have thought that you only own 50% on the property increase, i.e. £20K.

No matter what, if you continue to live there for the next 2 years and have no other plans you should remortgage soonest before the next rate rise, and even if there is no rate rise it will still be cheaper than to stay on the SVR of the lender.

mercurystar999

I'm actually on a base rate tracker if that makes any difference?