Remortgage advice

srobbo74

Have only one month to run on current mortgage 90% mortgage at 5.29 + base rate house cost £100k.

Have just had house valued by 3 estate agents at between 112 and 115k, currently have savings of close to 10k.

We would like to move house and once we are married in 8 weeks or so we will actively pursue this, i have a few questions.

1) shall i use savings to pay off some of the mortgage to get a better rate
2) if i did pay mortgage with savings could we then use the equity in the house to put down on another house
3) which mortgage companies should be looking at for the remortgage
appreciate any help

kingstreet

1) If you plan to move in the short-term I would keep the savings intact, don't reduce the mortgage yet.

2) You can use the equity in your home as part/all of the deposit for your next home whether you reduce the mortgage with your savings or not.

3) Why remortgage? Unless you can find a product with no early repayment penalties, you could end up tied-in when you really don't want to be. The best remortgage product may not be the best product for your purchase...

What's the follow-on rate when your current deal ends?

srobbo74

abbey svr which i think is 4.29 so would be better off anyway wouldnt i? thought i had to have one in place when current mortgage ran out

2) would it be possible to use the small amount of equity in the house to part fund a deposit on a new house?

thanks for your help.

originalmiscellany

I think when you sell your house (all theoretical) your mortgage is 100k, you have 10k saved and the house is worth 115k - Therefore you have
House at 100k vs value of 115k and 10k saved - in theory 25k you could use to sell your house and use that as a deposit if you move to a new house, which would be a reasonable deposit, but it would wipe out all savings. Savings which you will inevitably need to use on buying "stuff" in your new house.

Yes, the 4.29 SVR is better than the deal you're on, and you should be able to move providers at any time for no cost as your locked in deal has ended.

And congratulations on your marriage in a few weeks!