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Advice on remortgage for house with improvements completed
UrbanSplash
Posts: 2 Newbie
Hi all,
I'm new to this forum as I'm a bit stumped on what to do regarding a potential remortgage...grateful for any advice.
My wife and I moved into a property a year ago. Got the house for a rock bottom price of £250k. This purchase was mortgaged using 2 products from Nationwide.
Product 1 is an old product carried over from a previous house purchase. This was originally a fixed rate that lapsed onto the base rate 6 years ago where is still is to this date. It's likely this will start to rise pretty soon when the Bank of England increases interest rates.
Product 2 is a new product for the remainder of the mortgage amount, and we have a year lapsed on a 4 year fixed rate. So 3 years still to go.
Within the last year we have extensively renovated the property with:
New windows, new boiler, new staircase, new bathroom, new internal doors, re-wire, decorated throughout. So it's up to current regs etc and all sparkly. Given the current market of comparable houses locally, it's probably worth £300k ish now if we put it up for sale.
This is where I'm a bit stumped... I don't think we got a particularly good deal with our fix a year ago, so I'm sure there are new products currently that are better. Also, we would like to release some equity to pay for an extension next year. We have zero intention of moving within the next 10 years.
Obviously I can't now go to Nationwide and change the current fixed rate product with a new one with them (with better rates), so is it feasible to go to a new lender and remortgage based on the current market value they deem appropriate and ask for some equity to be released for the extension?
Is there any scope in our current Nationwide products to get the house revalued? I tried calling them but didn't get much sense.
Any suggestions, thoughts or comments are welcome!
Cheers....
I'm new to this forum as I'm a bit stumped on what to do regarding a potential remortgage...grateful for any advice.
My wife and I moved into a property a year ago. Got the house for a rock bottom price of £250k. This purchase was mortgaged using 2 products from Nationwide.
Product 1 is an old product carried over from a previous house purchase. This was originally a fixed rate that lapsed onto the base rate 6 years ago where is still is to this date. It's likely this will start to rise pretty soon when the Bank of England increases interest rates.
Product 2 is a new product for the remainder of the mortgage amount, and we have a year lapsed on a 4 year fixed rate. So 3 years still to go.
Within the last year we have extensively renovated the property with:
New windows, new boiler, new staircase, new bathroom, new internal doors, re-wire, decorated throughout. So it's up to current regs etc and all sparkly. Given the current market of comparable houses locally, it's probably worth £300k ish now if we put it up for sale.
This is where I'm a bit stumped... I don't think we got a particularly good deal with our fix a year ago, so I'm sure there are new products currently that are better. Also, we would like to release some equity to pay for an extension next year. We have zero intention of moving within the next 10 years.
Obviously I can't now go to Nationwide and change the current fixed rate product with a new one with them (with better rates), so is it feasible to go to a new lender and remortgage based on the current market value they deem appropriate and ask for some equity to be released for the extension?
Is there any scope in our current Nationwide products to get the house revalued? I tried calling them but didn't get much sense.
Any suggestions, thoughts or comments are welcome!
Cheers....
0
Comments
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Are you prepared to pay the early repayment charge on product 2 in order to move to a new lender? If not you need to stick with Nationwide. Best to involve a broker who will be able to explain your options to you.0
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Yes we would pay the early repayment charge. I guess a broker would advise on the cost/benefit of doing so....0
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