2 year fix coming to an end - and just had a pay cut!

Daisybaby1

Good point Domino9, I'll see what else I can find, fingers crossed somebody will give us a fix!

dimbo61

The starting point should be your existing Lender !
You already owe them what £149,000 or so and if you look on the lenders website you may find what they offer to existing customers.
Consider a long term fix of 3/5 years to provide security to your family !
Rates are only going one way over the next 2/3/5 years.
If you have plans on moving the long fix may not be a good idea as ERC,s
In 3/5 years you may have a LTV of 80/75%

Daisybaby1

Thank you for replying dimbo61, when we bought the house we 'paid' £168500, but done loads of work on it and recently had it valued at £180000. Do you know if our current lender will go by a recent valuation, or do you think they will want to base it on the original value?

Yes I know what you mean about rates going one way, that's what worries me most about SVR, we are not planning on moving so I'm definitely hoping we can get a longer fix.

dimbo61

Even using your own figures !
You put down a 10% deposit and have paid off £3,000 in two years :-(
At best you have 15% deposit but your lender may offer deals at 90% LTV
Check out the lenders website and give them a call on Tuesday !
Who is the lender ?
Some have good websites which give details of deals for existing customers while others make you go in branch or call the mortgage centre.

hcb42

If you want them to consider a new value (above normal market inflation), you will need to pay for a valuation

Just see what the best deal is for staying with them.

Daisybaby1

Thank you for all the advice I've just been on our current lenders website, they had a section on deals for existing customers, it asked me for our mortgage account number and some other personal details, then showed us what options were available to us. They are happy to give us a new fixed rate without doing another affordability check which I am so relieved about! It's not exactly the best deal out there so we may try to apply for a better deal elsewhere first, but at least I know now that we can actually GET a new fix.

Thanks again for all the advice, it stupidly didn't even occur to me to check with our current lender!

dimbo61

You now have a starting point and can see if other lenders can beat that.
With the new MMR thinks are only going to get tougher and take longer so if you need/want to switch lenders you need to get applying now.
Take into account remortgage costs to move lenders and long term plans !