Re-mortgaging - Fixed rate and LTV

vivedi

Hello. Our fixed rate is due to end next month (thought it was April so we’re a little late to look into this) so I would appreciate some help from those here who are experienced in re-mortgaging.
We are planning to get a new fixed rate offer with our lender but wondering whether it makes sense to lock into a 10 year fixed rate in the current political / financial climate or not? We were locked into a 5 year fixed rate until now (FTB 5 years ago).
We still owe just under 130k. Our house was valued at 190k when we bought it. Other houses identical to ours on our street have sold recently for over 230k. How would we go about getting the house re-valued or does that even make sense given that our fixed rate expires in 4 weeks? 130k on a 230k house would put us in a different LTV band than 130k on a 190k house. So is this worth trying? Or does that make everything else more complicated and expensive?
Thanks in advance for your help!

Edi81

Do you see yourself still living in the house for the next 10 years?
What is the ERC each year?

csgohan4

remortage guide here:
https://www.moneysavingexpert.com/mortgages/remortgage-guide/


You can look at retention products online which require no checks


if they are not competitive, remortage elsewhere if it is worth it for you after doing all the math


In the meantime no harm in paying off as much as you can while you are in the SVR rate next month or this

Moneyminded

Only lock yourself into a longer term fixed mortgage if you see yourself living in the house for that length of time.

If you are planning on staying with your current lender, or indeed moving to another, they will automatically value your property (most likely online) so any increase in the value of the property will be taken into consideration.

If you aren't wanting to increase your mortgage or change the term it should be really straightforward to change onto a new product with your current provider. Give them a call and explore what rates they will offer you.

getmore4less

Check your retention deals now.
The lender should have them as you are so close see what LTV they give you.

that sets the benchmark for looking elsewhere.

vivedi

Edi81, good question. It really depends on our financial situation. We are in a 3BR property right now and would like 4BR but realistically I can’t see ourselves being able to move any time soon. We are always window shopping houses online but unless we have a big change to our financial situation I don’t think we would move because we want to keep our house easily affordable. So I think there is a good chance we might still be here in 10 years.
What does ERC mean? Thanks for your reply.

Csgohan4, thanks, I will have a read of that.

Moneyminded, thanks. Does that mean that the rates we’ve been offered are already based on the new value of our house? All rates are a fair bit lower than what we paid so far. So maybe that’s part of the reason (and of course we have paid off some of our mortgage already). We are planning to make a monthly overpayment (rather than decrease our term) instead of having a lower monthly payment as we would on any of the new deals we’ve been offered.

When we took out the mortgage it was over 33 years, so we have 28 years left but would be keen to pay it off sooner.

I will look into what they say about porting the mortgage to another house on the off chance that we did move within the fixed rate term.
I’ll give them a call later today as I have some questions anyway.

vivedi

Getmore4less, yes we saw our rates last night which prompted me to post here. But it doesn’t mention what our current LTV is. All interest rates are much better than our current one though.


Currently we pay 2.89% and the rates they’ve offered us are:
2 yr 1.34% and £999 product fee
5 yr 1.59% and £999 product fee
2 yr 1.69% and no product fee (as are all following)
3 yr 1.74%
5 yr 1.79%
7 yr 1.94%
10 yr 2.29%

getmore4less

Which lender?

you can see which LTV rates they are offering.

some lenders have better deals going through a broker.

edit: what's the full term?

getmore4less

For those rates and £130k

2 year no fee is better
5 year pay fee is better.

vivedi

Thanks. The full remaining term is 28 years and we are with Santander.

getmore4less

Those look like 75%.
Getting to 60% would shave around 0.1% off most of those rates.