Fixed rate deals and valuations

engineer_amy

Hi all

I'm looking for a bit of advice on getting a new fixed deal.

I came to the end of a 5 year fix in May (4.29%) and my banks SVR was 4% so I was happy to stay on it for a while. I'm concerned the base rate will be going up mid 2015 so just trying to plan now.
I bought the house in 2009 for £125k on a 90% repayment mortgage, there is currently £99k outstanding. I was trying to gauge the current value. At the moment there are no other houses on the market in my immediate area, 2 months ago there were a couple of properties that were priced at £100k for quick sales. The estate agents would not disclose how much they finally sold for.

My query is this - when going for a new deal with either the existing lender or possibly a new lender do they do a full valuation, do they charge valuation fees and what happens if the valuation is around the outstanding amount (>90%ltv)? Do they just refuse to give a new deal? I don't want to have to pay valuation fees if there is little chance of getting any benefit.

bb69

Hi existing lender you do not need valuation.

A new lender there will be a valuation but maybe free if you select somewhere which has free valuation and basic solicitors fees

I believe if 90% LTV etc then you would only be able to have a deal in that bracket

engineer_amy

Thanks

Also, when going for a new deal (prob with existing lender), is it subject to the same new affordability tests that new mortgages have?

bb69

Not sure whether applies to all lenders, but I have just transferred to a new product (as made life easier) and didn't need any additional checks.

Have a look on their website make sure you look for rates for existing customers. I had been looking at remortgage rates which didn't apply to me at first.

Edit - Was transferred onto new product at the start of month

Yorkie1

engineer_amy wrote: »

Thanks

Also, when going for a new deal (prob with existing lender), is it subject to the same new affordability tests that new mortgages have?

If you are staying with your existing lender and not changing either term or amount borrowed, you can usually transfer onto another product with them online without going through affordability. (You're looking for customer retention, not remortgage, products).

Any other circumstance will involve affordability assessment.