Mortgage Renewal

SusieWoozy_2

We moved house back in May, porting our current mortgage of 117k on a 70% ltv rate and then added another 30k on a 89% ltv so my mortgage is made up of two sub accounts. The property is worth around 168k

My fixed term on the 117k ends in January, I can therefore switch and fix again with my current lender from 1st November.

My question is.... will Halifax renew the 117k on the current ltv of 70% or, will they take the view that the whole mortgage (both parts total is 85% - 90% ltv) and offer a rate based on the higher ltv.

I hope that makes sense!?

YHM

Hi Suzie

Halifax would base it on the total mortgage that is held over the property, so it could be a case that your rate actually goes up, dependant on your ported rate and the available rates at your new higher LTV.

SusieWoozy_2

Thank you for your help. That's what I was concerned about! So.... we have done a lot of work to the house including the addition of a third bedroom (building regs compliant etc) would the lender take this into consideration when looking at the value of the property to work out the ltv?

YHM

Potentially. If you roll it over with your existing lender they may automate the valuation (ie just use market value data, local housesales etc) which would do you no favours. However, if you remortgaged it elsewhere, they are more likely to do a full valuation, which could show the extra work you have done and give a better LTV.

dimbo61

Have you added value ?
I.E. extended the property by building a side or rear extension ?
Built over the garage ?
Or just altered the interior to make an extra bedroom.