Fixed deal ending, increasing house value?

mercmanricky

So i bought my 3 bed house as a repossessed bargain in oct '10 on a 2 year fixed deal. The house was in quite a state and in need of plenty of repairs and updating. We have slowly worked our way through the house and all the major repairs have been completed and approx 40% of the house has been redecorated.
From using rightmove as a a guide to value my property I estimate we've added a good 20-25% onto the value of the house already.
My main question is if I should steam ahead and get the house finished and potentially add up to another 10% to the value to decrease the LTV meaning i can get a better rate when the fixed deal ends?

I'm still a mortgage rookie, so i hope i've got the right end of the stick...

kingstreet

mercmanricky wrote: »

if I should steam ahead and get the house finished and potentially add up to another 10% to the value to decrease the LTV meaning i can get a better rate when the fixed deal ends?

In a word, yes.

Whether you approach your current lender for a new deal or remortgage to a new lender altogether, the lower the loan to value, the better.

What's the follow-on rate for your current deal? This may influence whether you are better off simply allowing your fix to lapse and continuing on the follow-on rate.

mercmanricky

OK.

I'm with Nationwide, rate will go down from 4.59 to SMR of 3.99 as things stand if i just let it lapse.

kingstreet

Ok. So establish what Nationwide are offering for you to stay, then compare that with other lenders' offers, not forgetting to factor-in any transfer costs which might apply.