Remortgage Advice

Mihangel

Hello
I am currently with Accord mortgages and my 5 year fixed finishes in september 2012 and I have been informed their SVR is 6%. I have been offered a 3 year fixed at 5.29 with a LTV of 96% from them.

I have questioned the LTV and was informed they use the halifax price index which has valued my home at £123k. I have explained that my neighbour has accepted an offer of £155k for the same property opposite. However they didn't want to know. They stated i can get it revalued at a price of £100 however it will only reduce the fixed rate to 5.10.

I recently applied to move to skipton mortgages for a fixed deal and was turned down due to both myself and partner having overdrafts that we live in.
We have a joint income of 47k and an outstanding mortgage of 117k. we both have debts on credit cards which are manageable and if we carry on with the overpayments will be cleared in 2 years.

Can anyone offer me any advice on which mortgage companies have more relaxed criteria's. I am happy to go on a svr for a couple of years.

any help appreciated.

thanks
Mike

bigadaj

You are going to struggle, you need to sort your finances out. You earn a decent income so start paying off overdrafts and cards, overpay your mortgage so that your ltv is better which will open up better rates.

Jimbo1976

I think the best idea is to speak to a broker. Some lenders aren't quite so worried about overdraft use as long as you stay within your limit.

If they cannot help you then I would pay the £100 to Accord to have a better valuation as that is going to save you 0.19% per year for 5 years.

Mihangel

bigadaj wrote: »

You are going to struggle, you need to sort your finances out. You earn a decent income so start paying off overdrafts and cards, overpay your mortgage so that your ltv is better which will open up better rates.

I appreciate what you are saying, I am currently paying back an extra £200 to my credit cards each month to try and reduce the debt. When my car loan finishes in June i will be throwing another £200 a month at the cause.

I think the best idea is to speak to a broker. Some lenders aren't quite so worried about overdraft use as long as you stay within your limit.

If they cannot help you then I would pay the £100 to Accord to have a better valuation as that is going to save you 0.19% per year for 5 years.

I will give a broker a call this week, its just not a good time for one to come out to my house as i am currently having the downstairs renovated.

Jimbo1976

Brokers won't be worried by the state of the house, there are a pretty tough bunch.

If you are keen to get the ball rolling but worried about the decor then just have a chat over the phone.