end of 2-yr fixed rate - new deal checks?

alecs

My 2-yr fixed rate with Halifax will end mid next year. Current LTV is around 80%.

If I decide to stay with them, will they run affordability and credit checks if I switch to a new fix term deal?

Also, how is the LTV determined at that time? Will they be using the property value that shows up in their systems? (I believe they have a price index that their systems calculate...).

Thank you!

kingstreet

Product transfer carries out no further status checks. Indexed valuation is used to establish LTV.

You can pay a small fee for a drive-by (£80) or internal (£130) if you think the indexed value is lower than the reality.

alecs

Thanks. Are there any costs involved other than this valuation fee? Do these new deals usually come with mortgage product fees?

kingstreet

Depends on the product. Some have fees, some don't. Pick the offer which offers best value for you and your circumstances.

No other costs.

alecs

I'm afraid I'm stuck with Halifax for a while. I have secondary income that's not being taken into consideration fully, so that is why I was concerned with affordability checks. Worst case scenario is 80% LTV, best case would be 75% so it might be worth paying for a valuation... are those fees Halifax's valuator fees for re-mortgages (believe it's Colleys)?

kingstreet

No. These are the fees for a Colleys drive-by or internal inspection on a Halifax product transfer.

A remortgage is a transfer of a mortgage, from one lender to another.

alecs

Oh thanks yes that's what I meant just to switch the deal, not sure why I said re-mortgage :-)

Are they using for their index valuation the house price calculator on Lloyds website? (sorry I can't post links yet)

Or do they look at a more specific area e.g. postal district or borough and take into account type of property e.g. flats only?

kingstreet

Sorry, I have no idea of how the indexed valuation system works.

However, if you contact a branch, or a broker, and give them your mortgage account number, there is a way to "look up" the valuation of the property, so you can decide if you should consider paying for the drive-by or internal inspection.

I'd suggest you consider the latter if you've spent time improving the inside of the property since you bought it.

InsertWittyName

kingstreet wrote: »

However, if you contact a branch, or a broker, and give them your mortgage account number, there is a way to "look up" the valuation of the property, so you can decide if you should consider paying for the drive-by or internal inspection.

Halifax used to have this option when looking at your mortgage account online, it's a shame they dropped it.