Remortgaging question

OpenToSuggestions · 26 Oct 2013 at 18:19

Hey all.

I bought a house in May, 90% loan to value and fixed for 2 years.
Currently I am trying my hardest to overpay, and am doing so by a little over 10%. The reason for this is so that when the 2 year fixed is up, I will (according to mortgage calculators) owe 85%, so will get a better interest rate.

However...

I bought the house for around 12-14% under actual value, as the previous owner needed a quick sale, so when I remortgage I will own a far larger amount as the property is worth a lot more.
Is the above sentence true? I am struggling to overpay and am going without other stuff in my life to do so, which I don't mind too much but perhaps I don't need to

.

Many thanks.

OpenToSuggestions · 26 Oct 2013 at 18:27

Amleto said:
I wouldn't have thought theoretical value matters. Surely everything is in the context of the sale value? When you got your 90% LTV they didn't say "ah, but you got ~12% off the 'real' value so your LTV is only 88%", did they?!

I agree, but if I went to another bank they would need to revalue the property first?
It must work the other way too - I could have bought it in 2007 on a 5 year fixed deal, before the value took a nose dive.

OpenToSuggestions · 27 Oct 2013 at 19:02

ruffneck said:
Just re-mortgaged mine, I had it re-valued at the same time.

Did you stay with the same bank?
Did you have to pay for the re-valuation?

OpenToSuggestions · 28 Oct 2013 at 19:32

jimjamuk said:
This - if you think you could fall into a lower LTV band and save money then just get them to revalue the house and adjust accordingly.

Sounds like I need to get the property revalued then.

I bought it in May under value and since then month on month prices have been climbing - Not really that much, but after two years my 15% equity could become 25%. I have no intention of selling of it makes little difference, but would save a bomb on my mortgage payments.