Remortgage Advice

quantic

Hi everyone, our initial mortgage term is due to expire next year, I know its way too early to do anything yet but just wanted to ask what the best practice is for remortgaging, how far ahead of our first term expiring should we be making applications with other providers.

Having never done this before, I am a little unsure about the process. To add a slight complication to it, our property was a repossession so its worth more than we originally paid, however, they valued it at what we paid at the time - I understand this is normal.

Do we just arrange for the property to be valued at the time then work out our LTV ratio at the time. We started off with a 90% mortgage but when you factor in overpayments, actual value etc we are going to be around 70-75% now.

Its hard to know exactly what our property is worth, if we know roughly would we just apply for a 70% deal and get them to come out an value it with that in mind, would there be any penalty should it not be worth what we thought?

We are just trying to prepare and start shopping around, thanks in advance.

ACG

I call my clients around 3 months before the deal is due to finish. So i would start to look around then.

If you stay with the new lender, ask them if they can do a new valuation. If you go to a new lender, they will do a valuation anyway.

If you apply for a 70% LTV product and it comes out at say 73% then the lender would probably just discuss with you whats available at the price range.
You then have the option to go with that or look at alternative lenders.

If you go via a broker, they will do that for you.

quantic

Thanks, I thought as much but wanted confirmation.

Much appreciated!