First-time Remortgage-er

321232000

Hi Guys,

I'm hoping someone will be able to help me clarify a few things as this will be the first time I've remortgaged (the two year fix is set to end in June)

My first question has to do with our LTV. My current lender has adjusted our property value (at my request) in line with the house price index, which has taken just about taken us past the 80% LTV grouping - but only just. How are you supposed to know which mortgage to apply for before the bank values the property (and charges you for doing so)? I don't want to apply for an 80% mortgage only to find out we're not eligible but already paid the fees.. Likewise, I don't want to apply for an 85% mortgage with a worse interest rate only to then find out we could have got the 80% mortgage after they value the house!

The other main thing (and this may sound kind of naive) is I know that a solicitor is needed for some things, but I don't know exactly at what point I need to get one and how much it will cost. What's the process for this? When we purchased it all just kind of happened but I can't remember how!

Thanks, Ed

ACG

Do you have an idea of your house value? Can you get an agent round?

Most lenders on remortgages have free valuations, but obviously you do not want to be making applications on a whim. If you are genuinely unsure then short of having a punt, there is not a lot you can do. Generally speaking however so long as the price is there or there abouts, most surveyors will sign it off.

Lilla_D

Apart from remortgaging direct, you could also speak to a broker to find out if you could get a better deal elsewhere.

Most remortgage deals come with free solicitor services (i.e. the lender appoints a solicitor and pays for it), but if it's not the case, the broker looking into your options will advise you. In that case, you'll need to appoint one before making an application, so the solicitor details can be included in the application.

Lrimas

We recently remortgaged at HSBC and they handled the solicitor part for us (for free).

We had to pay for the valuation (organised by them) and our LTV came in lower than the product we applied for. No problem, we simply moved it to a product with a higher LTV.

All of it was a simple online process.

Edit: We didn't lose the money we paid to secure our rate either. They simply used it to secure the new rate.