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Re-mortgage advice

NoNameNoNumber

NoNameNoNumber

NoNameNoNumber

Soldato
Joined
25 Nov 2009
Posts
5,392
Morning guys... 2 years in and I still owe 85.7% of the original mortgage. Will default to 4.49% beginning of April so I have been looking around... Problem seems to be that if I go to another broker they will want to value the house fair enough... I paid around 25% below asking. BUT the house is still undergoing some work... No carpets yet or doors, decorating not finished and no drains... Can I still get a valid valuation or will they come round and value it much below what it will be worth in 2-3 months time???

Current mindset is to leave it until the house is actually finished and then get a re-valuation and a new mortgage term, I just don't like the idea of paying 4%+ when there are deals at ~2%...
 
From what I know, they will value it on its condition as in brick work condition, roof condition etc.carpet, doors and wall paper is only a fraction of the property value.

You could always get an estate agent round to value it and that would give you a good idea before you get the bank over to value it.

Just a thought, I could be totally wrong.
 
Revert to the variable rate for a couple of months until you can get the major bits sorted, but generally speaking a mortgage valuer is unlikely to come inside unless the home is uninhabitable (e.g. not kitchen/bathroom).
A higher valuation will of course mean a better LTV and therefore a lower rate in the long run though.
 
OK that does make sense... The new bathroom, kitchen, CH etc etc though... that'll all be considered in the value right? So hypothetically, lets say it 3 months when its all done, it's valued above the original asking... suddenly my LTV drops to maybe 60%. I'll have some much better offers on the table right?

In this instance I would be better stomaching the next few at 4.49%?
 
I'd get it valued and locked in at a better rate for 2 or 3 years, or a mixture of fixed and variable more likely. You're talking about immaterial changes in value which will not make better rates available to you IMO.
 
In terms of mortgage application though the value is only 125000 (as thats what I paid) this leaves a much higher LTV than I and the estate agents think it'real worth is though... More especially so once the house is presentable which I think IS taken into account when an estate agent or whoever comes round to put a value on it...

Happy to be told I'm wrong though.

You recommend getting re-mortgaging now? I'll pop up town I think and see what my current lender has to offer.
 
Stay with the same mortgage company and they may just do an electronic evaluation based on the original valuation and whether prices have gone up or down in your area.

That's what we did, Halifax for some reason only valued our house at £120000 but a remortgage with nastiest and they said it was worth £135000 electronicaly.
 
rogue66700 said:
Stay with the same mortgage company and they may just do an electronic evaluation based on the original valuation and whether prices have gone up or down in your area.

That's what we did, Halifax for some reason only valued our house at £120000 but a remortgage with nastiest and they said it was worth £135000 electronicaly.
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Exactly what we did with halifax and it was very easy

Also be careful of setup fee's if you move company. the amount of capitol you pay off in the early years of a mortgage is negligible and you may find the setup fee of a new mortgage will wipe out anything you've paid to date.
 
I wouldn't get too caught up in theoretical increases in value. The world is on the cusp of a deep corrective recession. Base rates are practically at zero and are predicted to increase to 3.0% by 2019. China slowing down and O&G in turmoil means less inflows to the UK, and London, and this is already showing in flat or declining prices. Furthermore, if the UK exits expect the uncertainty to cause a shock which will further impact jobs, production, rates and ultimately real estate.

In other words, we're in a very very fragile place right now and the last thing you want is more debt on your head so if I were you I'd probably remortgage on a fixed rate for the next two years but take as little debt as possible incase the worst happens. If it doesn't, and the future looks bright (which you'll know within the next 12 months) you can always re-assess at that point.
 
kaktus said:
I wouldn't get too caught up in theoretical increases in value. The world is on the cusp of a deep corrective recession. Base rates are practically at zero and are predicted to increase to 3.0% by 2019. China slowing down and O&G in turmoil means less inflows to the UK, and London, and this is already showing in flat or declining prices. Furthermore, if the UK exits expect the uncertainty to cause a shock which will further impact jobs, production, rates and ultimately real estate.

In other words, we're in a very very fragile place right now and the last thing you want is more debt on your head so if I were you I'd probably remortgage on a fixed rate for the next two years but take as little debt as possible incase the worst happens. If it doesn't, and the future looks bright (which you'll know within the next 12 months) you can always re-assess at that point.
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I don't think he's looking to take on further borrowing, just remortgage to avoid going on his bank's SVR. So the higher his house is valued, the lower his loan to value and the better the rate he'll get on his mortgage.
 
kaktus said:
I wouldn't get too caught up in theoretical increases in value. The world is on the cusp of a deep corrective recession. Base rates are practically at zero and are predicted to increase to 3.0% by 2019. China slowing down and O&G in turmoil means less inflows to the UK, and London, and this is already showing in flat or declining prices. Furthermore, if the UK exits expect the uncertainty to cause a shock which will further impact jobs, production, rates and ultimately real estate.

In other words, we're in a very very fragile place right now and the last thing you want is more debt on your head so if I were you I'd probably remortgage on a fixed rate for the next two years but take as little debt as possible incase the worst happens. If it doesn't, and the future looks bright (which you'll know within the next 12 months) you can always re-assess at that point.
Click to expand...

mulpsmebeauty said:
I don't think he's looking to take on further borrowing, just remortgage to avoid going on his bank's SVR. So the higher his house is valued, the lower his loan to value and the better the rate he'll get on his mortgage.
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Exactly this... At 65 % LTV I can get around 2%, at 85% LTV I'm nearer 4%...

Looks like I'll take Santander's current SVR @ 4.79% for a couple of months then get it valued and hopefully fix for 2-5 yrs at less than 3%...
 
We have our mortgage with Santander. When the two years was up I went to their website and got it fixed for another two years with a much better rate. No fees in involved. We were paying £535 per month and now we are paying £425.
 
I just got 2.5% at 90% LTV with NatWest. At 65% you should be looking for rates that start with a 1!

Just get it valued, all your pondering at the moment are based on theoretical values. Once you know how much it is actually valued at you will have a much better idea of what you can do.
 
Aye NatWest(ulster bank) when they reappraised me, did it electronically, and this increased the value, using generic rises in surrounding postcodes.
You may find they do this, in which case would only rise you a little, so it might be worth a full revalue, to get your level up to where it should be.
Will make a significant dent into your interest payment component.
 
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