Remortgaging advice

sharhar

Need some advise on remortgaging. 

We bought a house couple of years ago at 90% LTV (2.39% 2 years fixed) with Halifax. With over payments and the recent increase in house prices we could now remortgage as 80% LTV. I checked in both Halifax and nationwide house price indices and mortgage broker checked with Halifax as well, so we are sure we could do a remortgaging with 80% LTV.

Had a call with my broker recently and he suggested to stay with same lender so no affordability checks are required as we have some major life events in next few months ( job change and new baby).

He got couple of options at 1.97% fixed for 2 years and 2.20% fixed for 5 years. We're not sure if we should take a 2 or 5 year fix. I personally feel the rates are bit high for 80% LTV at the moment.

We're pretty sure we will be able to get it down to 75% LTV in 2 years where the rates are bit more competitive. But for that to happen the house prices should either remain the same or increase. We're worried if there is price crash (after stamp duty holiday) we would go back into higher LTV and higher interest rate.

Any suggestions?

julicorn

What's the remaining balance on your mortgage? No one will be able to predict what products will be available to you in 2 years time, but we can at least work out what difference the interest would make (which is more if you have more left to pay off, of course). 

getmore4less

What size of mortgage and what fees are those Halifax  options.
What are the other options fee/no fee at 80%


one issue with Halifax is they used to and mays still(they hide the rates now)  tier their retention rates and as the mortgage gets smaller they become less competative.as their rates go higher.


What rates do you think you should be getting for 80%  if you think those are high?
 

sharhar

Balance on mortgage is 344k. Remaining term 33 years.  Fees mentioned by broker is 999 on both options. I did not get any other options for any other fee or no fee products from the broker. I will ask him for those.

getmore4less said:

What rates do you think you should be getting for 80%  if you think those are high?
 

Sorry I should i have been more clear. I meant the difference in rates between 80% and 75%. For 75% the rates with high street lenders for five year fix is around 1.51%+ and specifically with halifax at around 1.52%. It is much less compared to 80% LTV products. So was just wondering if it is worth to take a two year fix at 1.97% and then move to a 75% LTV (by getting it down to 75% with overpayment).