End of fixed term deal - decision time, help!

thesouthernnortherner

I'm probably going to come across as really stupid, but there's so much going on at the moment that my brain is struggling to make sense of things, so I apologise for some of my questions.

My fixed term deal on my current HSBC mortgage ends at the end of January, so I need to either remortgage or switch deals. My mortgage is currently at ~£64k, from an original loan of £67k. I bought the flat as an FTB for £83k, but since purchasing it has been renovated quite a bit. According to HSBC, I'm at a 76% LTV, but looking at some of the rough valuation sites, my flat is worth more now than it was sold for. Can/should I ask HSBC to revalue, to get a  more favourable LTV?

Also, at the time I bought it, I completely emptied my savings account, but as the mortgage is cheaper than rent, and I've had a significant pay rise, I'm looking to pay more off than I currently am. On the other hand, I have some potential large expenses coming out soon, so I will need to replenish my savings. HSBC allow a 10% overpayment per year - should I stick with that, or try and shorten my mortgage term and pay higher monthly payments?

I can probably get a cheaper rate if I switch lenders, but I don't think it's worth it, given that the savings would seem relatively small compared to the hassle - I'm under a lot of stress at work which will remain at the current level at least through to February.

haras_n0sirrah

Why not pay in enough extra to get it below 75% ltv to unlock the lower rate tier, then refix 

getmore4less

HSBC current no fee  22/10/2020
LTV........2.......5y
60% 1.79% 1.99%
70% 1.99% 2.19%
75% 1.99% 2.19%
80%  2.54% 2.74%

~£64k LTV  76%,  to get to 75%  ~£1k, worth finding with those rates.

Unless a big increase in value to get to 60% might as well try to find the cash.

overpay is better than shorter term unless you will reach the 10% limit.


 

thesouthernnortherner

I have the cash at the moment, but my storage heater needs replacing and I think my car will need work in the next month (MOT time). I can put things on my credit card for a while until the money comes back in - I guess overall that would be a greater saving. 

I struggle with interest rates and how they are calculated on daily basis - I seem to remember it's an iterative formula, but it's been so long since I did that kind of maths. So I don't know whether the credit card interest would work out more or the mortgage interest. Perhaps I'm overthinking it...

getmore4less

Get a 0% purchase card to manage the cashflow over the next years or so no interest/fees
https://www.moneysavingexpert.com/credit-cards/best-0-credit-cards/

For the mortgage you are looking at amortization as the maths behind them.
http://www.whatsthecost.com/mortgage.aspx

for a simple interest saving estimate (amount * rate difference)  £64k * 0.0055) = £352 a year(it goes down as you pay some off.

thesouthernnortherner

Ok, now for a really stupid question - I currently have a 0% balance transfer card that I'm currently paying off. Would this cause a problem in getting a 0% purchase one?

I lived within my means quite strictly for many years. At one point I didn't have a credit rating at all, because I hadn't had anything on credit for years!