Re-fixing mortgage

Sparkles87

We owe £85k and property value is £115k, we also have a loan to the building company of 10% of property value so I believe we have to stay with the mortgage company we are with as others cannot offer products on this arrangement.

Our fixed rate ends next month, it was 4.89% for two years, although we've only had the product/home for 19 months due to building delays. There's 33 years and 4 months left on a repayment mortgage.

The mortgage company offer better rates for under 75% LTV, would we be counted as being under this?
The fixes currently being offered are for five years or two years - are they likely to offer both or might we be restricted to the two year offer? The new fixes are 2 years - 3.19% or 5 years - 3.69%.

Is it worth us speaking to a broker about using a different company?

dimbo61

You may well be able to get a better deal with your existing lender at the end of the fix IF your figures are right?
Who said the property is worth £115K have similar houses nearby sold for that price?
You have a LTV of 75% if it is worth £115K and you owe £85K
It is up to you if you want to take a 2 year fix or a 5 year one.
We know nothing about you or your long term plans

Sparkles87

The property was only purchased in October 2011 for 115k, since then the development has finished so I would expect that it's held its value. Would it be revalued for a new product fix?

Our long term plans are to get through the next year with me on maternity leave and lesser income, then save to pay off builder's 10% and a deposit so that we can change this property to BTL within three years.

dimbo61

Good luck with that.
You want to repay £11,500 to builders and save 10/15% for next property ?
All in 3 years.
Better live the MSE way it can be done :-)

Sparkles87

We saved the £12k to get this place in a year with a similar level of "disposable" income (outgoings were lower but incomings were also lower previously). Not easy but we're determined