Barclays retention products - equity calculation?

deejaybee

Hi all,

Coming to the end of a 5 year fix end September.

I spoke to Barclays online help today, and they said i will be able to reserve a follow-on retention product from July 3rd.

Asked him about how they calculate equity and hence what products would be eligible for.

He said that it would be based on the valuation at time of taking out the mortgage.

I then asked if house price increases/decreases were included in the calculation..... unfortunately the online chat died before i got an answer and i couldnt resurrect it..

So thought i would run the final question past you folks on here !

I think that if its just based on valuation as of 5 years ago, i wont make the 60% deals, but would be ok for the 70%.

dimbo61

They will do a " desk top valuation " looking at recent sale prices of similar properties in your area.
If your not happy with this and have make major changes you could pay for a new survey/valuation.

amnblog

The equity would not be based on the valuation 'at the time of taking out the mortgage'. It would be based on today's valuation at the time of selecting the new rate. Barclays have an automatically indexing valuation for each case on their system.

Give a Broker your 10 digit account number (starting with a '9) and they can access that valuation figure for you. We do them every week (they take a couple of days to come through).

deejaybee

Appreciate the feedback both, thanks.

I remember that our broker said he would be in touch when the end of our fixed rate was in sight. I have pretty much decided to stay with Barclays as i am S/E and dont fancy going through all the affordability/ legal stuff again.
So in those circumstances i dont know whether he would assist with the automatically indexing valuation figure...

amnblog

He would, because they will pay him for looking after you.

deejaybee

Thats good to know

Thanks once again for your help :beer:

deejaybee

Just had another thought about this..


If i am borderline between qualifying for 60% deals, or have to go with 70% deals - maybe i am better waiting till nearer the actual end date of current fixed deal, as i will have paid another 2 or 3 months worth.


Or can i get a " indexing valuation figure" 90 days before end of current rate, as well as another one closer to end date ? ( via broker of course )


Ta

amnblog

The indexed valuations do not always go up.

deejaybee

Hi,


Yeah i understand that, i meant that i will have paid another 3 months worth of mortgage payments which will obviously bring the balance owing down .


( We started off with a 17 year term, so effectively have been overpaying anyway compared to someone on a more normal 25 yr term )