Mortgage deal ending

Thehoss

Hello,

My first mortgage deal will be ending in a few months. If I stay with the current provider can I submit the initial value of the house when we first took out the mortgage ?

This will probably give me a better rate in the new deal.

I presume they won't insist on a new survey/valuation?

Thanks

ExpertAdvice

They may not want a revaluation but they might not give you the best deal in the market.

Moreover, what if your property has gone up? You would lose out on the equity and chances of getting a better deal elsewhere.

Thehoss

Similar properties in my area have decreased in value quite dramatically as it was purchased at the peak of the housing market.

And the deal they offer does not seem so bad although I will have to do some research into available rates.

MarkBargain

I think they usually do a calculation based on the valuation at the start of your last mortgage, adjusted by average house price changes in your area. So I don't think you 'submit' a valuation at all, they will tell you what it is. There will be no need for a new survey if you stick with your current provider. Make sure you get a good deal!

Thehoss

Interesting, but makes sense.

Also you can apply for a new deal 3 months before the old deal expires, does that come into effect immediately after you agree to it or only once the old deal has expired?

MarkBargain

Thehoss wrote: »

Interesting, but makes sense.

Also you can apply for a new deal 3 months before the old deal expires, does that come into effect immediately after you agree to it or only once the old deal has expired?

I'm not sure. Nationwide let me switch mid-deal and the new product took over about six weeks after I agreed the switch.

Thehoss

Thanks for your replies.