Remortaging in 5 month time but I was offered to lock in new rate now

Sam3007

Hi there,
I am on a fixed rate of %2.07 that ends in December this year.
My LTV is 65%.
Halifax offered me to lock in a new rate from now to start in Dec.
2 years at %6.3
5 years at %5.6
For several reasons, I might not be able to change lender.

My questions are:
1- Shall I lock in a new rate now or wait  for BOE rate to come down?
2- If I lock in a rate now, will I be able to swtich (lock in a new rate) again with Halifax between now and Dec if the rates go down?
2- My LTV should be around %59 based on my hourse market valuatrion. How can I dispute Halifx index valuation to get a better rate?

Any help would be apprecaited.

WYSPECIAL

Sam3007 said:

Hi there,
I am on a fixed rate of %2.07 that ends in December this year.
My LTV is 65%.
Halifax offered me to lock in a new rate from now to start in Dec.
2 years at %6.3
5 years at %5.6
For several reasons, I might not be able to change lender.

My questions are:
1- Shall I lock in a new rate now or wait  for BOE rate to come down? How do you know they are coming down and not up? Can you afford the rates offered? If you can and don't want to risk further rises it might be worth locking in now.
2- If I lock in a rate now, will I be able to swtich (lock in a new rate) again with Halifax between now and Dec if the rates go down? Halifax probably tell you this in the offer. No doubt there will be a fee so check it carefully.
2- My LTV should be around %59 based on my hourse market valuatrion. How can I dispute Halifx index valuation to get a better rate? Message them and ask if they will consider it.

Any help would be apprecaited.

See comments in bold.

RelievedSheff

If your LTV is 59% then you will be on the best rates available. No point disputing the Halifax Index Valuation in your are in the bottom bracket already.

No one has a crystal ball and no one can predict what rates are likely to be by December.

It is widely expected that there will be a further BOE interest rate increase next week of 0.25-0.50%. So you may well find that those rates you have been offered will be revised next week.

amnblog

This is how it works.

You can secure a Halifax rate now to start in December.

If rates rise further before then, you will not lose the currently available rate.

If rates fall before then, you can cancel the initial reservation (at no cost) and take the lower rate.

It is smarter to do this via an Independent Mortgage Broker.

Why?

For larger mortgages you may be able to secure a more cost effective rate via a Broker (as Halifax do not offer all available rates through their direct channel)

Your Broker is best placed to monitor rate changes and help you to switch to a lower rate later if one becomes available.

Sam3007

RelievedSheff said:

If your LTV is 59% then you will be on the best rates available. No point disputing the Halifax Index Valuation in your are in the bottom bracket already.

No one has a crystal ball and no one can predict what rates are likely to be by December.

It is widely expected that there will be a further BOE interest rate increase next week of 0.25-0.50%. So you may well find that those rates you have been offered will be revised next week.

Sorry I meant Halifax put me at 65LTV because they valued my house at around 280K (i bought new built a couple of years ago). other identical houses in the same development were sold this year at 320K, so I was wondering if I can challenge Halifax valuation because if they amend the house valuation to 320K I will go below 60LTV.

Sam3007

amnblog said:

This is how it works.

You can secure a Halifax rate now to start in December.

If rates rise further before then, you will not lose the currently available rate.

If rates fall before then, you can cancel the initial reservation (at no cost) and take the lower rate.

It is smarter to do this via an Independent Mortgage Broker.

Why?

For larger mortgages you may be able to secure a more cost effective rate via a Broker (as Halifax do not offer all available rates through their direct channel)

Your Broker is best placed to monitor rate changes and help you to switch to a lower rate later if one becomes available.

Thanks for the explanation. 
If i use an Independent Mortgage Broker, will I need to submit a full mortage application with credit check, pay slips ..etc? 

FashionHeart

Sam3007 said:

Hi there,
I am on a fixed rate of %2.07 that ends in December this year.
My LTV is 65%.
Halifax offered me to lock in a new rate from now to start in Dec.
2 years at %6.3
5 years at %5.6
For several reasons, I might not be able to change lender.

My questions are:
1- Shall I lock in a new rate now or wait  for BOE rate to come down?
2- If I lock in a rate now, will I be able to swtich (lock in a new rate) again with Halifax between now and Dec if the rates go down?
2- My LTV should be around %59 based on my hourse market valuatrion. How can I dispute Halifx index valuation to get a better rate?

Any help would be apprecaited.

Unless you have a crystal ball to know what the rates will be in December, then I'd recommend that you lock in a new rate now.
I was lucky that I locked mine in early now that the mortgage rates have become high.

simon_or

Book a switch now. If rates go down, you switch again. If rates go up, you do nothing.

There's nothing to gain by waiting. If your rate comes with a bank product fee, make sure you add it to the loan so it isn't payable until completion.

amnblog

Sam3007 said:

amnblog said:

This is how it works.

You can secure a Halifax rate now to start in December.

If rates rise further before then, you will not lose the currently available rate.

If rates fall before then, you can cancel the initial reservation (at no cost) and take the lower rate.

It is smarter to do this via an Independent Mortgage Broker.

Why?

For larger mortgages you may be able to secure a more cost effective rate via a Broker (as Halifax do not offer all available rates through their direct channel)

Your Broker is best placed to monitor rate changes and help you to switch to a lower rate later if one becomes available.

Thanks for the explanation. 
If i use an Independent Mortgage Broker, will I need to submit a full mortage application with credit check, pay slips ..etc? 

Not if you work with a sensible one