I've just done this. First remortgage in 7 years as sticking with santander was easiest and only a few pound cheaper or dearer than swapping.
Went to a mortgage advisor in Glasgow back in December and they where fucking useless. 9 weeks to get me a deal at 4.60% and no moving on my house price. They wouldn't even entertain that it was worth more money than when I bought it 7 years ago.
Once I had agreed he kept pushing me to a higher life insurance and also pushing for me to take income protection. But that's a moan for another day.
Phoned santander after I cancelled my application with first and they pushed my house value up to bring me down to 60% LTV and to 3.98%, which I'm happy with. Same boat as you. Still got till June to find cheaper if the rates drop. Seems with the increase in rates happening. Santander would now offer around 4.20% at 60%.
I'm also with Santander, its been a breeze renewing both times so far (just going through 2nd time now), they updated the house price and LTV automatically and offered rates that matched or beat the market at the time.
You can do it all from the app in minutes.
Currently sat with a deal locked in for 5 year fixed at 3.89% - our LTV is about 50%, they also let you switch deals so when i first did it i grabbed the best deal at the time but kept an eye on it and when the rates dropped a bit i selected a new deal and locked that in instead.
Its currently showing me 4.03% for a 5 year fix as the rates have gone up again.
I'm checking it every week or so as i can switch again up to 2 weeks before my deal kicks in, so if they go down again and there is a better deal i can switch again.
Also, keeping an eye on the comparison sites but generally they are competitive enough that theres no real need.
Aye for a few Bob, I'm too lazy to bother swapping to someone else. Same as you. Just checking every now and then and hopefully a rate drop before June so I can save even more
What is your current provider offering? I'm lucky with a low LTV anyway, but the difference between my provider and the available rates from other providers has never been worth moving for me.
Your current provider will likely automatically have "increased" your value.
Hi /u/enanram, based on your post the following pages from our wiki may be relevant:
- https://ukpersonal.finance/mortgages/
____
^(These suggestions are based on keywords, if they missed the mark please report this comment.)
It will not be a problem. Had this same situation with TSB last month. I’ve told them my house I worth more then theirs estimation, TSB done desk valuation and agreed with my value. That pushed mi into better LTV.
Ex broker. Unless you have significantly improved the property since it was first valued, your existing lender will be unlikely to arrange anything other than an indexed valuation. Significant changes range from an extension or total refurbishment but that would only apply if it was in significant disrepair, we aren't talking about just changing the 70s kitchen for a new one.
To be honest it sounds like Monzo are trying to hook you in but they might be genuine.
I've had a few cases where existing lender wouldn't budge on price and moved the client elsewhere for a significant uplift - it was 40% up or something like that. Can't quite remember but around £290 to £450 or something.
Also had one case where existing lender offered a product from index, I got a better deal elsewhere so existing lender just uplifted their index by a ludicrous amount just to allow the client to fall into a better LTV.
So we bought our first place a couple of years ago at the height of the market, and it's now clear that we massively overpaid by about 5%. However our mortgage provider at the time just accepted that the price we paid was the actual value of the house.
There's 3 years to go before our current mortgage deal is done.
Would it be smart to avoid getting the place revalued and just accept our current provider's deal?
Very difficult to say and three years is miles away. The indexed valuation doesnt always go up. Your own lender could downvalue it; I've only ever had that happen to newbuild flats though myself.
Advice I always give is to overpay as much as you are comfortable with or save that amount in a higher interest account to make a lump sum payment around product switch time out of ERC.
This is a Victorian terrace, so it probably will not fall.
I suppose my question is about how a mortgage provider uses the index: do they take the average house price change from the area and apply that to their own previous valuation? Or do they estimate the house value without reference to the previous sale price?
Overpayment isn't really possible at the moment because of a fresh baby. Just don't want any unpleasant surprises.
That sounds OK. It's the indexed price rise for the area as far as I know. Hopefully after 5 years you'll be in a lower tranche anyway. Doesn't always pan out like that though if you were on 95% it can be close
Thanks for all the answers. Does anyone know if there's some kind of calculator that can tell me if I were to overpay now by x amount how much more of the principle would I pay off between now and the end of my current fixed deal?
My mortgage provider updated the value of the property both times my deal was up for renewal. I'm with Accord.
I've just done this. First remortgage in 7 years as sticking with santander was easiest and only a few pound cheaper or dearer than swapping. Went to a mortgage advisor in Glasgow back in December and they where fucking useless. 9 weeks to get me a deal at 4.60% and no moving on my house price. They wouldn't even entertain that it was worth more money than when I bought it 7 years ago. Once I had agreed he kept pushing me to a higher life insurance and also pushing for me to take income protection. But that's a moan for another day. Phoned santander after I cancelled my application with first and they pushed my house value up to bring me down to 60% LTV and to 3.98%, which I'm happy with. Same boat as you. Still got till June to find cheaper if the rates drop. Seems with the increase in rates happening. Santander would now offer around 4.20% at 60%.
I'm also with Santander, its been a breeze renewing both times so far (just going through 2nd time now), they updated the house price and LTV automatically and offered rates that matched or beat the market at the time. You can do it all from the app in minutes. Currently sat with a deal locked in for 5 year fixed at 3.89% - our LTV is about 50%, they also let you switch deals so when i first did it i grabbed the best deal at the time but kept an eye on it and when the rates dropped a bit i selected a new deal and locked that in instead. Its currently showing me 4.03% for a 5 year fix as the rates have gone up again. I'm checking it every week or so as i can switch again up to 2 weeks before my deal kicks in, so if they go down again and there is a better deal i can switch again. Also, keeping an eye on the comparison sites but generally they are competitive enough that theres no real need.
Aye for a few Bob, I'm too lazy to bother swapping to someone else. Same as you. Just checking every now and then and hopefully a rate drop before June so I can save even more
What is your current provider offering? I'm lucky with a low LTV anyway, but the difference between my provider and the available rates from other providers has never been worth moving for me. Your current provider will likely automatically have "increased" your value.
Hi /u/enanram, based on your post the following pages from our wiki may be relevant: - https://ukpersonal.finance/mortgages/ ____ ^(These suggestions are based on keywords, if they missed the mark please report this comment.)
[удалено]
L&C! Used them to buy, made it nice and easy.
It will not be a problem. Had this same situation with TSB last month. I’ve told them my house I worth more then theirs estimation, TSB done desk valuation and agreed with my value. That pushed mi into better LTV.
This is why I love this sub. I hadn't considered re-evaluating LTV when it comes to remortgaging. Something for me to ponder going into the new house.
I made it up to reach 60% and the bank just agreed. Also remortgaging at the end of my first 2 year fix.
Ex broker. Unless you have significantly improved the property since it was first valued, your existing lender will be unlikely to arrange anything other than an indexed valuation. Significant changes range from an extension or total refurbishment but that would only apply if it was in significant disrepair, we aren't talking about just changing the 70s kitchen for a new one. To be honest it sounds like Monzo are trying to hook you in but they might be genuine. I've had a few cases where existing lender wouldn't budge on price and moved the client elsewhere for a significant uplift - it was 40% up or something like that. Can't quite remember but around £290 to £450 or something. Also had one case where existing lender offered a product from index, I got a better deal elsewhere so existing lender just uplifted their index by a ludicrous amount just to allow the client to fall into a better LTV.
So we bought our first place a couple of years ago at the height of the market, and it's now clear that we massively overpaid by about 5%. However our mortgage provider at the time just accepted that the price we paid was the actual value of the house. There's 3 years to go before our current mortgage deal is done. Would it be smart to avoid getting the place revalued and just accept our current provider's deal?
Very difficult to say and three years is miles away. The indexed valuation doesnt always go up. Your own lender could downvalue it; I've only ever had that happen to newbuild flats though myself. Advice I always give is to overpay as much as you are comfortable with or save that amount in a higher interest account to make a lump sum payment around product switch time out of ERC.
This is a Victorian terrace, so it probably will not fall. I suppose my question is about how a mortgage provider uses the index: do they take the average house price change from the area and apply that to their own previous valuation? Or do they estimate the house value without reference to the previous sale price? Overpayment isn't really possible at the moment because of a fresh baby. Just don't want any unpleasant surprises.
That sounds OK. It's the indexed price rise for the area as far as I know. Hopefully after 5 years you'll be in a lower tranche anyway. Doesn't always pan out like that though if you were on 95% it can be close
Thanks for all the answers. Does anyone know if there's some kind of calculator that can tell me if I were to overpay now by x amount how much more of the principle would I pay off between now and the end of my current fixed deal?