Mortgage Renewal

ForestBluebells

I’m about to renew my mortgage which the current rate ends in March

I’m close to the next LTV (60%) but it really depends on house prices at the time and I’m not totally sure I could hit the next bracket, I might need to put some cash towards this although I’m about to replace all the fooring which would potentially add some value as my carpet is in a bad condition. Is it better to use money from my emergency fund to lower to 60% instead of 65% LTV? I think im about 62% currently on a £128,750 mortgage. I just wasn’t sure if the small drop in monthly repayments was worth paying thousands to achieve?

Currently I’m looking at actually a slight rise in monthly repayments as interest rates have risen since my last deal. Also is it now worth looking at a longer fix instead of 2 years again?

LifeOf

Best to cost out a few different possibilities and go from there. If doing the work or adding cash works out more expensive than the next rate then don't bother. Plus you might need to factor in whether or not you plan to make overpayments in the future as this effectively will impact on overall percentage

Moneyminded

Replacing the carpets might increase your enjoyment of living in your home but it won't impact on the value of the house. If you are staying with your mortgage lender (or switching to another) they will likely have an automated house valuation tool that they use, they will most likely not step foot in your house.

Have you tried calling your existing provider to see what deals they could offer you? This will be a way to find out if the house has risen in value according to their systems and whether or not you are already in the 60% LTV bracket. If you are then no need to throw extra money at your mortgage now. If you aren't quite there you can see how far off you are and make an informed choice.

ForestBluebells

I tried to call but they aren’t open on Sundays so I’ll call them tomorrow and find out what value they have for my home and how much would be needed to move to 60% LTV. They did come out and look at my place for the valuation last time so I assumed that was normal

getmore4less

Start with the retention deals from your current lender,
In many cases once you hit 75% the next increments are a tiny anyway

which lender?

ForestBluebells

I’m with Santander. I’ve been doing some reading and it looks more likely of an interest rate drop than and interest rate rise, it might be worth waiting as if they drop I could secure a better rate?

Currently I’m looking at having to renew on a higher rate than I am on now (1.69%)

csgohan4

ForestBluebells wrote: »

I’m with Santander. I’ve been doing some reading and it looks more likely of an interest rate drop than and interest rate rise, it might be worth waiting as if they drop I could secure a better rate?

Currently I’m looking at having to renew on a higher rate than I am on now (1.69%)

Crystal ball time, who knows what the interest rates will be like

ForestBluebells

I appreciate no one knows, it’s just annoying having to renew on a higher rate although I appreciate that’s completely normal and will happen again and again during the life of my mortgage 😂