Remortgage advice needed

galileo

I currently have a mortgage of £137,500. I'm looking to consolidate 22k in credit card debts, which effectively means a remortgage of 160k.

My current 2 year deal with the Abbey comes to an end in August and by then, my salary will be circa 43k. I'm looking for products with an LTV of 95% but ideally looking to avoid a higher lending charge.

My credit record is excellent in that I've not missed a payment in years.

Looking to fix for at least 3 years. Are there any lenders who will be able to accommodate me at below 6% based on the above info?

I also need some advice on the valuation process as I believe my property is worth 170-175k based on rightmove comparisons, however I need some advice on whether surveyors/valuers are likely to go in a lot lower than that to cover their !!!!!! from negligence claims.

UK007BullDog

Yes, they might come in lower it depends on the property and age. depending on the deals available in August no one can say. But as long as your credit file is clean you should not have a problem but if you can save up as much as you can that would help to pay towards mortgage.

lynnexxxo

Common theme at the mo is that surveyors are surveying low. But even at the lower end of your estimate (170) your LTV would be 94%.

I guess it really depends on what figure the surveyor comes up with. But the problem is that it'll cost you to get the survey done with no guarentee of the mortgage you want at the rate you want!

Sorry for the completely unhelpful reply!!!

galileo

property is second floor flat built in 2005...one exactly the same sold for £172,500 in Sept last year but I appreciate the market has flattened since then...I just wanted to get a flavour for whether surveyors are coming in ridiculously low in current climate or whether they are still being half sensible...any thoughts?

neverdespairgirl

On a newbuild flat, where one sold last Sept for £172k, I seriously doubt you'll get a valuation in the region of £170k. You could find it well under that - £155k to £160k.

galileo

I'm coming up for remortgage and to get 95% LTV is going to be tight.

I was wondering if anyone has had any first hand experiences on how low valuations are coming in? Perhaps you are a broker and your clients have had lower than expected valuations?

Conrad

galileo wrote: »

whether surveyors are coming in ridiculously low in current climate or whether they are still being half sensible...any thoughts?

Yes they are being half sensible in that they are down valueing property to reflect treu value rather than the false inflated values that resulted from the debt bonanza when money was easy to come by.

Now mortgages are being priced to reflect risk there is a drop of 40% in the cash available to be pupmed into the housing market so OF COURSE values will reflect this reduction in cash unless you know some black magic that will enable people to still buy homes with 405 less cash available from mortgage:rotfl:


We all better understand right now that the last few years were the exception not the norm.

Im temming my clients to put in offers at least 15% below advertsied prices, afterall the FSA forces me to treat customers fairly:T

Conrad

The newer built stock is overly susceptible to down vals. In general valuers are proceeding very cautiously, afterall just about all of the 100% loans have dissapeared which is a sure sign lenders consider the risk of declining prices to be high.

Furthermore many lenders have recently ceased lending 95%, including Accord, IF and C & G. Others will follow this lead.

All you can hope is that demand is sufficient in your area to support real prices right now (forget last year - thats all ancient history).

Prices are merely a reflection of credit availability. You cant fill apond without water.

Best of luck