Remortgaging from a first time buyer

hunt85

Hi all we're just coming to the end of a 2 year first time buyer fixed rate mortgage with halifax. We'll be right on the limit of 85% LTV which most places seem to have as a maximum for a remortgage. This would give us rates of between 4% & 5% for fixed rate deals. the variable rate we would be going on to with halifax is 3.99% but we are not gambling people and as we're first time buyers we want to go into another fixed rate asap as low as possible before the base rate goes up and effects our monthly payments - which i'm assuming would happen on the variable rate that our mortgage will revert to at the end of our fixed rate in a couple of months.

So who decides what the value of our flat is when remortgaging to another bank etc? we bought it at £116k 2 years ago. I'm basing the 85% LTV on a valuation on £120k :S

If we don't fit the 85% max LTV (which seems to be the max for any decent rate in most places) do we have to just stick with the halifax on the variable rate until we get down to 85% LTV or go into another fixed product with them where the rate might be 5%+ for example just to get into a fixed rate?!!? thanks all

mildred1978

hunt85 wrote: »

Hi all we're just coming to the end of a 2 year first time buyer fixed rate mortgage with halifax. We'll be right on the limit of 85% LTV which most places seem to have as a maximum for a remortgage. This would give us rates of between 4% & 5% for fixed rate deals. the variable rate we would be going on to with halifax is 3.99% but we are not gambling people and as we're first time buyers we want to go into another fixed rate asap as low as possible before the base rate goes up and effects our monthly payments - which i'm assuming would happen on the variable rate that our mortgage will revert to at the end of our fixed rate in a couple of months.

So who decides what the value of our flat is when remortgaging to another bank etc? we bought it at £116k 2 years ago. I'm basing the 85% LTV on a valuation on £120k :S

If we don't fit the 85% max LTV (which seems to be the max for any decent rate in most places) do we have to just stick with the halifax on the variable rate until we get down to 85% LTV or go into another fixed product with them where the rate might be 5%+ for example just to get into a fixed rate?!!? thanks all

a) you're not first time buyers anymore.............??
b) it's unlikely your property is worth what you paid for it, never mind more
c) when you bought, the bank valued your property. It's exactly the same when remortgaging

Thrugelmir

Base rate is highly unlikely to move for some months.

Suggest you maintain your payments at the current level and make some inroads into your debt. If possible make some further savings from your budget and use this to pay down your mortgage debt as well.

The sooner you improve your LTV the quicker you'll access to better rates.

kingstreet

- Ask Halifax for your indexed valuation figure and what product transfers are available to you

- If you apply to remortgage elsewhere a surveyor will be instructed to value the property for the new lender

- Possibly stay on standard rate and overpay as Thrugelmir suggested, until remortgaging later with a lower balance

hunt85

ok great thanks all. I didn't mean we are now first time buyers but we were first time buyers two years ago and this is our first time remortgaging in the sense we are now coming off a fixed rate! i should have been more clear. sounds alot easier to stay with halifax and get our mortgage down to at least the 85% so we could go elsewhere if we wanted to. i agree that the base rate may not go up for some months but we like to know for the next X amount of years that are payments are not going to change rather than worry about it happening in 6 months time etc - our budget is tight!