help with remortgage

horshamman

Hi all

new to the site so a hello hello to all

I was hoping that i could get some help with my mortgage.

Currently on 4 yr deal with Woolwich at 4.69% based on house value of £250,000. Payments are 1,039 a month. 30 year term initially - we are two years through. Mortgage was for £200,000 so 20% equity. our current balance is circa 193,000.

we bought the house in a run-down state and have done a lot of rennovation. We are semi detached and the house attached sold for £310,000 last year. Only differences are a double driveway (we have a single but same room to extend, a conservatory and a bigger garden which is maybe a third bigger) inside, they are identical sizes.

I have been looking at deals lately and figured that with the work done and the price the house next door sold for, even if our house was now worth £280,000 our LTV would attract much better rates.

By doing some calculators, i have figured that for a rate at 3.5 approx i could pay the same each month and reduce the mortgage term from 28 to 20 years which is a huge saving in interest.

There would be an early repayment charge of 3% and mortgage fees i am assuming.

I figured that additional capital paid off with a lower rate would offset the overpayment over the two years and would look to take out a 5 year mortgage at the better rate.

My question is, where should i start with this? the mortgage would be with the same provider.
Has anyone had a mid-term revaluation before?

I realise i may have answered my own question a little but i keep thinking i'm missing a trick somewhere!

Keen to pay off my mortgage as soon as possible and a term reduction at a lower rate does seem appealing!

Thanks for reading

horshamman

forgot to add that i would look to add the repayment fee to the mortgage plus fees so would almost be reverting my mortgage back to the original balance initially.

leccyblue

As you say, you've pretty much answered all your own questions! If you want to stay with Woolwich, then the starting point is with them. They should allow you to do this, but if you want to add all of the fees and ERC charges to the new mortgage, bear in mind its the total including these that will be used to calculate LTV. They'll probably want to do a new survey to verify the new market value.

Yorkie1

I don't know whether the Woolwich is one of the lenders who don't allow you to come of a fixed rate product early and switch to another product with them. You'd need to check this with them first (assuming you wanted to stay with them).