Remortgage Advice

[noopets]

I’m looking for a bit of advice if possible.

Our 2 year fixed mortgage rate ends 1st July. I’m looking to remortgage but obviously with the current situation I can imagine it’s going to be a bit of a minefield.

I took out a 20k loan with the bank to do work on the house a few month after we moved in so maybe look to consolidate this into the new mortgage if possible (I’m confident that we’ve added a decent bit of value onto the house in the 2 years).

Mortgage is with Virgin Money, loan with HSBC.

Can anyone shed some light on options I may have?

Cheers!

[RobXjcoupe]

Nationwide being a building society have better rates of interest compared to a bank, best fixed rates have always been over 24 months.

[Sarnie]

noopets said:

I’m looking for a bit of advice if possible.

Our 2 year fixed mortgage rate ends 1st July. I’m looking to remortgage but obviously with the current situation I can imagine it’s going to be a bit of a minefield.

I took out a 20k loan with the bank to do work on the house a few month after we moved in so maybe look to consolidate this into the new mortgage if possible (I’m confident that we’ve added a decent bit of value onto the house in the 2 years).

Mortgage is with Virgin Money, loan with HSBC.

Can anyone shed some light on options I may have?

Cheers!

What is the LTV? (loan amount divided by the property's value)

[Sarnie]

RobXjcoupe said:

Nationwide being a building society have better rates of interest compared to a bank, best fixed rates have always been over 24 months.

Why would you think that a Building Society has better rates than a Bank?

[Killer2005]

Sarnie said:

RobXjcoupe said:

Nationwide being a building society have better rates of interest compared to a bank, best fixed rates have always been over 24 months.

Why would you think that a Building Society has better rates than a Bank?

+1

Building societies just can't really compete with banks on pricing.

[noopets]

Sarnie said:

What is the LTV? (loan amount divided by the property's value)

Originally was 95%. Problem is I’m not too sure on what the current value of house is! Paid £108k and got £99,375 left on it.

I’d hope value is at least £140k

[Sarnie]

noopets said:

Originally was 95%. Problem is I’m not too sure on what the current value of house is! Paid £108k and got £99,375 left on it.

I’d hope value is at least £140k

Your "current" problem is your LTV will trigger the requirement for a physical valuation.......in the current circumstances, there are no physical valuations being conducted by surveyors, how long this lasts no one knows but it's in place for the foreseeable few weeks.

What you'd need is to trying to target a lender who will carry out a desktop valuation but this won't be easy as you are looking at a fairly substantial valuation uplift.

The next thing is debt consolidation at 85% LTV, even if you get your £140k valuation.....lots won't do debt consolidation at 85% LTV.

Personally, I would think about the pros and cons of securing unsecured debts against your house.........

[noopets]

Sarnie said:

Your "current" problem is your LTV will trigger the requirement for a physical valuation.......in the current circumstances, there are no physical valuations being conducted by surveyors, how long this lasts no one knows but it's in place for the foreseeable few weeks.

What you'd need is to trying to target a lender who will carry out a desktop valuation but this won't be easy as you are looking at a fairly substantial valuation uplift.

The next thing is debt consolidation at 85% LTV, even if you get your £140k valuation.....lots won't do debt consolidation at 85% LTV.

Personally, I would think about the pros and cons of securing unsecured debts against your house.........

Thanks for this - part of me is thinking to just wait till this is over and sort then but obviously that’s going to mean me going into the svr of 4.34% and paying more.

I’m absolutely gutted this has happened, but I suppose there’s worse things to worry about!

Might give them a ring to see what they say and take it from there....

[RobXjcoupe]

Sarnie said:

RobXjcoupe said:

Nationwide being a building society have better rates of interest compared to a bank, best fixed rates have always been over 24 months.

Why would you think that a Building Society has better rates than a Bank?

Experience

[Sarnie]

RobXjcoupe said:

Experience

It's not correct.........