Remortgage or move to SVR until we move?

Arthien

After some advice as I'm struggling to get my head around this, never remortgaged before and we were FTB last time around so it's all new!

We're currently on a 3 year fix with nationwide, due to end in November. We paid £168k and started off with 95% LTV at 5.3% interest, but we've overpaid a lot so we now have about £27k deposit/overpayment equity, and we also renovated completely so the sale value is expected to be around £215k. That should give us another £47k, so £74k equity in total.

After November we will automatically drop to the SVR which is currently 3.74%, so already an improvement on our fix, but we're looking to move to a bigger house within the next year, so not sure whether it's worth remortgaging at the improved LTV rate or not (nationwide calculator reckons we could get a rate of about 1.5% and pay £350 a month instead of £800!!).

Most of their mortgages are portable but I'm not sure how that would work if we're going to be borrowing more to move next year? I'm assuming there will be fees to consider to remortgage, to port and to get the additional borrowing so there's quite a few numbers involved, but the lower monthly repayment is so much lower that I want to be sure I've considered it properly and not just stay on the SVR.

Any pointers would be greatly appreciated. We'll be going to see a mortgage advisor at some point anyway, but I'd rather go there with some idea of what we're looking for.

Thrugelmir

Ask the NW what they'll offer you. May be a little early if your mortgage product term doesn't end until November. Then you can make a more informed decision. Whether to remain on the SVR or switch to another product.

Arthien

Thrugelmir wrote: »

Ask the NW what they'll offer you. May be a little early if your mortgage product term doesn't end until November. Then you can make a more informed decision. Whether to remain on the SVR or switch to another product.

You mean what new product they'd offer? Would we have to base the numbers on our original value or would they have to revalue if we got a new product? I don't really understand the whole porting thing very well, or the solution might be clearer!

Penelopa.Pitstop

You will be able to choose new product online 3 months before end of current fix. When you apply for new product, system will automatically re-valuate your property based on their house price index. Any improvements you made to property won't be accounted for during this process.

You may talk to them to send surveyor to do new valuation to include improvements but if you didn't extend anything they may refuse. If it's flat, the same, they may refuse. I read it's possible to "force" them to re-valuate property after refurbishment.

You can go to Nationwide website, House Price Index, there's a calculator based on post code. It will give you idea how they will value your property without taking any refurbishment into account.

lee111s

Change products or remortgage to a tracker. They tend not to come with any ERC's.