Better mortgage deal due to big change in LTV

Jonathan_Park

Hi

After some advice ....

Currently on a 2 year fix with Halifax which expires next May (in retrospect a 1 year fix would have been ideal ..)

The property which we bought, after a lot of hard work has increased from a valuation of £270,000 to £365-375,000 , so obviously our LTV has changed dramatically.

Due to this we want to try and barter for a better deal with our mortgage provider (halifax)

I've seen very attractive rates and more significantly a reduction in term (37 years, which we carried over from a previous halifax mortgage on our first flat) with Halifax and other lenders.

Unfortuantley the current deal will carry 3% early repayment charges.

Does the change in LTV and proclaiming that I've found a better deal elsewhere give us any bargaining power with our lender to get them to offer us a better deal ? would Halifax knowing that we will leave when the fix expires help ? or would we be simply wasting our time ?

Cheers in advance
Jon

kingstreet

Jonathan_Park wrote: »

Hi

After some advice ....

Currently on a 2 year fix with Halifax which expires next May (in retrospect a 1 year fix would have been ideal ..)

I haven't seen a one year fix for donkey's years.

The property which we bought, after a lot of hard work has increased from a valuation of £270,000 to £365-375,000 , so obviously our LTV has changed dramatically.

How have you reached that conclusion? If you haven't done so, obtain your indexed valuation from Halifax

Due to this we want to try and barter for a better deal with our mortgage provider (halifax)

They offer you products, you accept or decline. There is no negotiation.

I've seen very attractive rates and more significantly a reduction in term (37 years, which we carried over from a previous halifax mortgage on our first flat) with Halifax and other lenders.

Halifax offers what it offers. You can take the offer, or move elsewhere. They don't offer sweeteners to some but not to others. That is not permitted. A change of term will require you to succumb to the advice process with the usual new application affordability checks.

Unfortuantley the current deal will carry 3% early repayment charges.

Does the change in LTV and proclaiming that I've found a better deal elsewhere give us any bargaining power with our lender to get them to offer us a better deal ? would Halifax knowing that we will leave when the fix expires help ? or would we be simply wasting our time ?

None. If Halifax values your property more, either via its indexed valuation or you pay to have a separate inspection you may move into a new LTV band but you won't escape the ERC, staying or leaving...