First time remortgaging

Gti

I bought a house with a 2 year fixed mortgage at 1.99% with Accord, LTV of 75%, which is ending in February next year.
They have sent me a letter saying they estimate with their house price index accounting for house price increases my new LTV to be 62.25%. If I did continue with them is this definitely the figure they would use or would they send a valuer round?
The new value would be on the low side locally but I'm only halfway through renovations so I wouldn't challenge it.

When remortgaging do you still need to hire a conveyancer/solicitor if staying with same lender? What if you go with different lender?

I was thinking of fixing for 5 years, they have offered me 1.92% with £995 fee or 2.12% with no fee. Am I likely to get much better elsewhere? What if I overpayed to get into the 60% LTV band?

flashbang

Can't speak from any great experience but had similar situation a year ago with Leeds Building Society mortgage. As an existing customer looking at remortgaging they provided a valuation online which seemed about right. We were able to transfer to an alternative product with them without any credit checks or valuer involvement. They only seemed to be interested if you wanted to increase borrowing or make significant changes to the deal outside of the products they offered to us online.

Gti

How long did the remortgaging process take you with the same lender? I have until middle of February but I'm sure nothing will be done over xmas if I applied now.

Alisha2008

For us it took about 2 months, staying with the same lender.

kingstreet

Stay with existing lender = product transfer or customer retention product. No change to mortgage deed, no solicitor and usually no status/affordability checks. Automated valuation.

Remortgage = new lender. Change to mortgage deed, conveyancer needed. Same status/affordability checks as a purchase and usually a valuation inspection is needed. Maybe automated at lower LTVs.

getmore4less

Gti wrote: »

I was thinking of fixing for 5 years, they have offered me 1.92% with £995 fee or 2.12% with no fee. Am I likely to get much better elsewhere? What if I overpayed to get into the 60% LTV band?

Its not just the rate but the total fees, the bigger the mortgage the more fees you can take for a lower rate and be better off

1.92% £995 fee or 2.12% on a 5y fix break even is between £110k &£120k depending on term(34y-16y).

depends on lender where there break points are for better deals,

what are Accord offering on 60% to see if it is worth overpaying now or even take a 2y fix to be below by then.

Beetroot24

We've just remortgaged with Nationwide. They didn't require a survey (apparently they had enough info on our property already, and we are at 45% LTV), but they offer free valuations anyway. Although we had to pay legal fees, we will get £500 cashback which will cover those, and then some

Gti

Accord don't seem to offer anything at 60%.
Mortgage is ending next month so I think I've left it too late to jump ship.

My mrs has been doing some calculations and reckons it's better to go for a 5 year fix at 2.12% whilst overpaying £995, instead of taking a 1.92% and £995 fee. Is it really better to overpay a grand and take the slightly higher interest? If so, whats the point of the mortgage with the slightly lower interest and fee?

While no one has a crystal ball, is the general advice to take a longer term fix right now as interest rates aren't likely to be much lower? Brexit is an unknown quantity but I can't see it being like 2008 in the near future.