Remortgage Early and Pay Early Redemption Fee?

beecher

Max 75% means that if your property was valued at £90,000 your mortage couldn't be higher than £67,500. When I've got a new deal with the Halifax their system works out a value for my flat - I'm not sure what happens if you tell them you've had additional work done on it.

Who valued the flat in August? It is likely to be valued at a lower level now depending on where you live.

Greenr

mitchaa wrote: »

Loan to value

£75000 mortgage on a £100k property would be 75% LTV
£25000 mortgage on a £50k property would be 50% LTV

The lower the LTV rate, the better the rate you are offered.

With the same lender, you probably wouldn't need a new valuation no.

£1330 fees for finishing early, how much did halifax say this new mortgage would cost? Were there any arrangement fees? Also do you know how much your current mortgage settlement figure stands at, ie how much have you already paid off?

Would my current mortgage lender use the valuation we received in Sep 07?

beecher

Greenr wrote: »

Should I just arrange for my property to be re valued to find out for sure? Also, would the mortgage provider use this valuation or send their own people out to value? My mortgage is about 65000

My advice to you would be to book an appointment with Halifax and get some quotes - it wouldn't be tying you in to anything and they would be able to use their system to give you an idea of what they think the value of your property is - getting your own from an Estate Agent would seem to me to be a waste of time.

mitchaa

Greenr wrote: »

Would my current mortgage lender use the valuation we received in Sep 07?

Nope, it will be a valuation as of June 2008.

Greenr

beecher wrote: »

My advice to you would be to book an appointment with Halifax and get some quotes - it wouldn't be tying you in to anything and they would be able to use their system to give you an idea of what they think the value of your property is - getting your own from an Estate Agent would seem to me to be a waste of time.

I'm going to make an appointment with Halifax then. At least that way I'll know what they would value my property at. Just so hard to tell what the market is going to do - I don't want to be in a bad position in May 09...

mitchaa

Also, did your 6.09% come with an arrangement fee?

Realistically i think your current valuation would be around the £85k mark, you have a £65k mortgage on it so this equates to a (£65k/£85k x100) = 76.47% LTV

Most lenders will give preferential rates for sub 75% so you are hovering around there already and thats not taking into account any drops in the market from now until May 09, the further prices drop, the higher the LTV and the higher the rate.

6.09% today may well be 8%+ this time next year, thats the gamble you have to take.

I think if i were you, i probably would.

beecher

Greenr wrote: »

I'm going to make an appointment with Halifax then. At least that way I'll know what they would value my property at. Just so hard to tell what the market is going to do - I don't want to be in a bad position in May 09...

I know - I can understand. At least your mortgage is relatively low and if mortgage rates are higher it shouldn't be catastrophic. The horror stories you hear are from people with much bigger mortgages than ours.

If you look at

http://www.moneymadeclear.fsa.gov.uk/tools.aspx?Tool=mortgage_calculator

you can fiddle around with interest rates and see what difference a 1% or 2% increase would make and hopefully it'll put your mind at rest.

mitchaa

Also have a look at this..

http://www.telegraph.co.uk/news/uknews/2104955/Mortgage-rates-could-hit-7-per-cent-later-this-year,-economists-warn.html

beecher

mitchaa wrote: »

Most lenders will give preferential rates for sub 75% so you are hovering around there already and thats not taking into account any drops in the market from now until May 09, the further prices drop, the higher the LTV and the higher the rate.

6.09% today may well be 8%+ this time next year, thats the gamble you have to take.

I think if i were you, i probably would.

Halifax offer 6.09% for 75% LTV, and 6.19% for 97% LTV so it isn't a huge difference - particularly on such a small mortgage.

Greenr

mitchaa wrote: »

Also, did your 6.09% come with an arrangement fee?

Realistically i think your current valuation would be around the £85k mark, you have a £65k mortgage on it so this equates to a (£65k/£85k x100) = 76.47% LTV

Most lenders will give preferential rates for sub 75% so you are hovering around there already and thats not taking into account any drops in the market from now until May 09, the further prices drop, the higher the LTV and the higher the rate.

6.09% today may well be 8%+ this time next year, thats the gamble you have to take.

I think if i were you, i probably would.

Exactly... if the value of my property drops any further I'll be in trouble!! Is there anything else to bear in mind when I visit Halifax?