Planning for next remortgage

maximise

Hi sub-zero temperatures and currently thinking about best strategy with the mortgage. I would love to get your advice on how to best prepare for next remortgage - well in advance I know,
Purchased new home end of 2023 with LTV just over 70%, 4.7% interest rate, 5 yr fix santander.


Haven't been making any significant overpayments (just £100 a month) as have been able to find interest rates above 4.7%, utilising LISA, ISA and high-interest regular savings accounts, thank you MSE!


have a few questions:

what should I be doing to get the best interest rate for next re-mortgage (in 2028!)
should I look to reduce LTV to a more favourable threshold, sub-60%?

how does it work, should I avoid using the mortgage broker I originally used when purchasing the property? Can I find a better deal before the 5 years is up, and switch?
will the house value be re-calculated in 2028?

El_Torro

Getting your LTV to 60% or below will mean you're eligible for more attractive mortgage rates than if your LTV is 70% or higher. So from this perspective it makes sense to get more equity between now and 2028. Some people prefer to put their spare money elsewhere, like a Stocks & Shares ISA or pension, it's up to you really. 

Why would you want to avoid using the mortgage broker you originally used? You don't have to use the same broker, but I don't see any inherent benefit in switching brokers (if you were happy with the service they provided last time). 

You can switch before the 5 year deal is up. Most mortgage deals include a hefty Early Repayment Charge. Worth checking what it is for your mortgage, though the ERC probably means you won't get any real benefit in switching before the end of the term. 

Yes, if you get a new mortgage in 2028 the value of the house will be recalculated when you apply for the new mortgage. Your existing lender might be willing to offer you a new mortgage without revaluing  your property, though that doesn't really benefit you if the value of the house has gone up. 

fergie_

Different lenders have different rules. Some will honour a standard house price index (especially where its the same lender) whereas other will want a desktop or physical survey done.

Keep in mind prices can go down as well as up, so you may need to put down more than you think to hit 60%. You won't know for sure until its time to remortgage.

If simply taking a new product with the same lender and length / amount, it should be straight forward without credit checks, whereas changing lenders or terms will mean full affordability checks.

Hoenir

Keep doing what you've been doing. Monitor interest rates carefully though.