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Advice with remortgaging please
zchas42
Posts: 10 Forumite
Hi there,
I'm currently locked into a fixed rate mortgage with three years left to run on the fixed rate.
Even though there's some hefty early repayment charges, some of the deals on the market look very favourable compared to what I have now.
The problem is I don't know how to tell if I qualify for them.
When I bought the house I had a 10% deposit. Since then house prices have done well in my area, and I think I probably now have around 20 to 30% equity based on estimates from a few sites such as Zoopla.
Precisely how much equity I have determines whether I'm eligible for some of the best deals that make repaying the early exit fees worth it. If I miss out on the best deals because my equity isn't as good as I think it is, then frankly it's not worth paying the fees.
When going through a remortgage process do you have to stump up for a formal valuation even if the surveyor says your house is worth less than you're expecting, and you can't get the mortgage you were after?
This is not a situation I'd want to find myself in...
Or perhaps the valuation fees etc. are only payable if you proceed with the new mortgage?
Grateful for your advice.
zchas42
I'm currently locked into a fixed rate mortgage with three years left to run on the fixed rate.
Even though there's some hefty early repayment charges, some of the deals on the market look very favourable compared to what I have now.
The problem is I don't know how to tell if I qualify for them.
When I bought the house I had a 10% deposit. Since then house prices have done well in my area, and I think I probably now have around 20 to 30% equity based on estimates from a few sites such as Zoopla.
Precisely how much equity I have determines whether I'm eligible for some of the best deals that make repaying the early exit fees worth it. If I miss out on the best deals because my equity isn't as good as I think it is, then frankly it's not worth paying the fees.
When going through a remortgage process do you have to stump up for a formal valuation even if the surveyor says your house is worth less than you're expecting, and you can't get the mortgage you were after?
This is not a situation I'd want to find myself in...
Or perhaps the valuation fees etc. are only payable if you proceed with the new mortgage?
Grateful for your advice.
zchas42
0
Comments
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If the situation is marginal. Is it possible for you to overpay your existing mortgage for a period of time to improve your LTV.0
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It is, but I'd still be much better off remortgaging if I have 30% equity. If I have 20% equity I'd be better off staying put.
I don't want to fork out tons of money on valuations only to find I have 20% equity and can't get the cheap mortgage.0 -
Most re-mortgage deals come with a free valuation. Look at the KFI.I am an Independent Financial AdviserYou should note that this site doesn't check my status as an Independent Financial Adviser, so you need to take my word for it. This signature is here as I follow MSE's Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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Look at what stuff has been selling for in your area and use that to estimate value.
When did you buy?0 -
June 2009, just as the market hit it's trough.
I bought a repossessed house, so got a bargain even at those prices.0
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