Same lender, new product switch question?

WLITC

So I have a 2 year mortgage with Leeds BS and its up end of April. I spoke to them this week and the rates on offer once my 2yr fixed deal ends is pretty rubbish.  However its a new flat (2019) but with some cladding and housing association havent done the survey to get the EWS1 forms sorted so I am likely to be unable to remortgaging with a new lender. I can't see this being resolved in the next few months so I'm thinking I'll have to stay with Leeds. Now currently the Leeds BS online tool suggests best rate as of Monday was 3.15% for a 2 yr deal again, vs my current 2.68% deal.   When I originally took out my mortgage it was a 90% loan ratio. Now, having paid off nearly 2 yeas and extra £150 a month the past several month, I think my new deal could be just shy of 80% loan ratio. Do they factor that in with a product switch? If I go with the original evaluation I'd need to pay off £4k more, which is fine as I have savings to do that, or if I go with the new figured based on Nationwide House price calculator, then I only need to pay off another £300-400 ish.

So I guess three questions. 1) when just doing a product switch, will they adjust the loan ratio? 2) Do they look at the current value or stick with original evaluations and lastly 3) If I only borrow 80% or less than the value, will that improve the rate they offer me? The 3.15% above is currently based I recon 83-84% loan ratio. 

K_S

@WLITC Can't speak for Leeds specifically but generally speaking

1. Yes lenders will take into account the current outstanding balance at that point

2. They will usually apply an indexation uplift to the purchase price from 2019.

3. If Leeds has both 80% and 85% LTV bands then yes getting it down below 80% should improve the rate a bit.

[Deleted User]

80% deals are 2.04% with a £499 fee for 2 year or 2.24% with same fee for 5 years. 

You should be able to ask them to revalue the property if you dont feel it is accurate. There may or may not be a cost to this

I am not seeing a 3.15% deal.  At 80-85% i am seeing 2.54% for 2 years with £799 fee, 2,69% with no fee for 2 years

Do Leeds offer cheaper rates through brokers than going direct? I'm not sure of the answer but it appears that way

WLITC

K_S said:

@WLITC Can't speak for Leeds specifically but generally speaking

1. Yes lenders will take into account the current outstanding balance at that point

2. They will usually apply an indexation uplift to the purchase price from 2019.

3. If Leeds has both 80% and 85% LTV bands then yes getting it down below 80% should improve the rate a bit.

Deleted_User said:

80% deals are 2.04% with a £499 fee for 2 year or 2.24% with same fee for 5 years. 

You should be able to ask them to revalue the property if you dont feel it is accurate. There may or may not be a cost to this

I am not seeing a 3.15% deal.  At 80-85% i am seeing 2.54% for 2 years with £799 fee, 2,69% with no fee for 2 years

Do Leeds offer cheaper rates through brokers than going direct? I'm not sure of the answer but it appears that way

Sorry my bad, its a shared ownership property/mortgage, so I believe the rates are higher for this type, so maybe that's why your seeing rates lower than 3.15%.  I will try and give Leeds a call today to understand about revaluating and how that works, if there is a fee.  If I do have to pay for a surveyor on top of the new mortgage/product fee then I am not sure its worth the bother for just two years as savings from a lower rate will be swallowed up by all the fees? 

[Deleted User]

I have had a look at shared ownership rates and I dont think it goes below 3.15%.  I put a 50% ltv case and the lowest rate was 3.15%.    I might be sourcing incorrectly but it doesnt look like you have many options

dimbo61

Do you really want a surveyor coming round at the moment ?
What happens if they give a £Zero valuation due to the cladding issue and No EWSI 
Maybe accept the best 2 year deal you can get online and overpay each month to get you to 75% in 2 years time.
You may need to consider the possible cost for the cladding works ☹️

WLITC

Deleted_User said:

I have had a look at shared ownership rates and I dont think it goes below 3.15%.  I put a 50% ltv case and the lowest rate was 3.15%.    I might be sourcing incorrectly but it doesnt look like you have many options

You are right. I called them and they basically said the quote for the product I could see online was the lowest band, so even as you suggest with a 50% LTV its no better. 

dimbo61 said:

Do you really want a surveyor coming round at the moment ?
What happens if they give a £Zero valuation due to the cladding issue and No EWSI 
Maybe accept the best 2 year deal you can get online and overpay each month to get you to 75% in 2 years time.
You may need to consider the possible cost for the cladding works ☹️

I don't, it was just a question as I wasn't sure how re-evaluations worked as this was my first mortgage so I'm not familiar with the remortgage process.  As you suggest (and as my mortgage broker who originally got me the Leeds deal has too) looks like I am best to accept the Leeds offer, although she has suggested I go with the fee included product at 3.35% as the 3.15% has a £399 fee but the high rate offer would only be just over £10 a month more, so would be cheaper to pay an extra £250-ish over 2 years than £399 fee.