2 year fix rate nearing end what to do?

Listerofsmeg

Hi all,

I bought a property with my wife on a 2 year fix rate at 4.67% with a deposit of only 5%. My fix rate comes to an end nearer the end of the year but I need some advice on how to proceed.

4.67% is quite a high rate compared to some out there but i was told by a broker that was the best i could get at the time as it was a 95% mortgage.

Our circumstances have changed since taking out the mortgage as we have had a baby and my wife is currently on maternity leave and is leaving her job once maternity has finished.

So now im wondering if i should wait and see if my current provider comes and offers me some good rates or whether to actively seek out a new deal now while she is still classed as employed?

glosoli

First place to start would be to look at your existing providers existing customer product range, and find out how they will go about obtaining a value of your property, and see what loan to value range you would fall into and what products would be applicable to you.

Listerofsmeg

Thats similar to what a few other people have said apart from the re valuing of my property. I know it has gone up a reasonable amount since purchase according zoopla. So hopefully i can get a decent deal.

westv

I wouldn't take Zoopla as any indication of a correct current value. Better to see if there are any recent sales of similar properties in your area.

Listerofsmeg

I have been looking and currently if zoopla is correct my property is worth 190,000 and was bought at 167,000. So that gives me potentially a LTV of 83%. Problem is if that doesnt effect my new rate with my current provider i would still have a LTV of 94-95% as i could only put 5% down initially. With my wife not working soon im worried i wont get offered another deal as i will be the only one employed and i wouldn't get offereed that mortgage on just my wages alone.

I really dont know what to do?

AnotherJoe

Odds are very high your best deal will be a retention product with your existing lender. Otherwise you'll have to go through full affordability checks which will put you Ina worse position.

Listerofsmeg

Yeah i think your right. My last question is how soon do i try and make another deal with my current provider. I have read that you can do it as long as six months in advance.