We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Re-Mortgaging advice

Options
Hi MSE Friends

I’m thinking ahead but asking for a bit of advice.
I purchased a house 6 months ago for £127,500 on a 35 year mortgage(2 yr fixed) with 10%. The house needed a complete modernisation and we have done the majority of it, new boiler, re-wiring, new & bigger bathroom, wallpapered and carpeted upstairs, laminate flooring and wallpapered downstairs.
In Jan 2015 I will start making overpayments as I want to bring my LTV as quickly as possible.
A house the same size, in the same street (a little better condition but not a massive difference) was sold for £180k. I am not saying we would get £180k but I would imagine £150k is a reasonable assumption – this brings the LTV down to 75% with the regular payments and overpayments and therefore hopefully it would make better deals available.
When my fixed deal ends should I
  • Get the house re-valued and look at other mortgages available – what kind of cost is a revaluation?
  • Would the current MP re-value the house if I stay on the SVR when the fixed deal ends?
  • Any other options???
Thanks
S
Scoops :)

Comments

  • lee111s
    lee111s Posts: 2,987 Forumite
    Eighth Anniversary 1,000 Posts Combo Breaker
    If you apply to a different lender to remortgage then they will send out a surveyor to value the property. This, along with the outstanding balance will dictate the LTV%. The cost depends on the lender.

    If you stay with your current lender they may have customer retention offers in which you can tie into another fix for however many years they offer. To get into the next LTV bracket though you'd normally have to pay for them to send out a surveyor, cost depends on the lender.
  • kingstreet
    kingstreet Posts: 39,256 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    You should investigate customer retention deals from your existing lender and remortgage options.

    How each will value the property is different. Autmomated/indexed or internal inspection, often with the latter free of charge.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • nubbins
    nubbins Posts: 725 Forumite
    If I was on your situation I would be looking at the comparison sites with a figure of say 150k and comparing the arrangement and valuation fees. I would then apply for a remortgage either through a broker or myself using 180k as the valuation as they will send someone round who will determine what they/the lender thinks its worth. In my experience the mortgage provider you are currently with can never match what you can get by signing up as new customer with another MP, obviously there are fees to take into consideration but i've always found its always worth switching. Speak to your current MP but I suspect you will find better elsewhere.
  • nubbins wrote: »
    If I was on your situation I would be looking at the comparison sites with a figure of say 150k and comparing the arrangement and valuation fees. I would then apply for a remortgage either through a broker or myself using 180k as the valuation as they will send someone round who will determine what they/the lender thinks its worth. In my experience the mortgage provider you are currently with can never match what you can get by signing up as new customer with another MP, obviously there are fees to take into consideration but i've always found its always worth switching. Speak to your current MP but I suspect you will find better elsewhere.

    Depends entirely on which lender the OP is currently with; some will as you say 'penalise' clients by offering worse products to existing borrowers; some will offer the same products; and some even offer better rates to existing borrowers.
    I am a mortgage adviser.
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • nubbins
    nubbins Posts: 725 Forumite
    Depends entirely on which lender the OP is currently with; some will as you say 'penalise' clients by offering worse products to existing borrowers; some will offer the same products; and some even offer better rates to existing borrowers.


    Which is why I said check around AND speak to their current MP
  • nubbins wrote: »
    Which is why I said check around AND speak to their current MP

    Hmm...
    In my experience the mortgage provider you are currently with can never match what you can get by signing up as new customer with another MP

    ...is a bit misleading then.

    Either way, we're on the same page.
    I am a mortgage adviser.
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • nubbins
    nubbins Posts: 725 Forumite
    You missed out the essential bit "Speak to your current MP but I suspect you will find better elsewhere.",. Its not really hard nor confusing is it, simply speak to your current MP to see what they offer and if its not as good (which usually it isn't) go elsewhere,simples.
  • I'd get it re-mortgaged. Ask everyone and see who gives you the best deal.
    SECRET OF SUCCESS IN LIFE:
    Patience, patience & patience.
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 351K Banking & Borrowing
  • 253.1K Reduce Debt & Boost Income
  • 453.6K Spending & Discounts
  • 244K Work, Benefits & Business
  • 598.9K Mortgages, Homes & Bills
  • 176.9K Life & Family
  • 257.3K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.