Advice on mortgage

deminimis

I would be grateful for advice on the following:

1. I have completed on the sale of my house and am in the process of purchasing another (currently living with relatives). My lender has agreed to port my old rate and refund my ERC provided I complete my purchase within 6 months of the sale.
2. The ported rate is comparable to what is currently available at my LTV (80%), but what makes porting attractive is refund of the ERC as this is approx £6k and I am also exempt product fees on the further advance.
   
3. What concerns me is that the fixed rate period on the ported mortgage will expire around 15 months after completion of the purchase. Although I am happy with the price I am paying for the house, there is certainly a good chance of house prices falling next year. Given I am at a fairly high LTV, I am worried that the lender will re-value the property when I come to re-fix with them when the fixed rate period expires - so I would either be in negative equity on the SVR or on an unfavourable rate for a higher LTV.

Is my concern valid, i.e. the lender would likely re-value at the end of the fixed rate period? Their original valuation would be maybe 18 months old.
By way of context, my total mortgage on the new property will be about £330k. This is affordable as it is around 3.5x my sole earnings and 3x combined earnings with my wife.

MovingForwards

Just see what rates they offer when the fix is up. Go online, pick what you want, click the button to accept it and that's it done.

deminimis

MovingForwards said:

Just see what rates they offer when the fix is up. Go online, pick what you want, click the button to accept it and that's it done.

Thanks - what do you think is the risk here of them re-valuing the property? On previous purchases I have always fixed for 5 years when buying to protect against market fluctuations and give me the chance to repay a chunk of capital before I have to re-fix. So I am nervous about buying with only a 1-year fixed period.

Thrugelmir

Markets also have an impact on interest rates not just LTV.  If the mortgage is comfortably affordable. Overpay the mortgage and improve the equity margin yourself. Little point in worrying about events over which you have no control.