Mortgage fixed rate up - change mortgage?

sillyme

My fixed rate will be up soon and I need to think about a new mortgage agreement. I'm a first time buyer so have no experience of this process.

I think my flat has gone up in value by about £30k potentially - I live in central London so prices are mental.

Could the increase in value mean I could potentially get a better mortgage - ie paying less money each month? Lord knows I could do with it.....

Jimbo1976

Unlike the rest of the UK there is a strong likelihood that the value of your property has indeed gone up.

Ultimately the rise in value could help you but it depends on the figures. If you originally had a 110% loan to value mortgage and you are not down to 95% then probably not. However if you put in a reasonable deposit when you bought the flat and it has gone up in value then you may be able to reduce your payment.

If you tell the forum what the value of your mortgage is, what you think the value of your flat is (preferably based on recent sale price figures for comparable properties on rightmove and zoopla), which lender you are with, what (if anything they have offered you) etc

It would also be useful to supply income and employment details as well as any financial outgoings, loans, credit card payments etc.

If you supply these then I am sure one (or more) of the wise mortgage brokers and IFAs who read these forums can give you a better indication of the position you are in and your options.

kingstreet

Check your "follow-on" rate. That's the rate which will automatically apply when your fix ends.

Ask your current lender about its customer retention products. These are products for people like you who have an offer ending soon.

Finally, start looking at remortgage products from other lenders. These are the offers you can take should you wish to move to another lender.