End of mortgage deal - How does it work
Discussion
Hi All
We bought our first house a year or so ago, on a 2-year fixed rate.
At the end of this period, I'm aware that we can get a new deal, which I'd naturally leave to our broker as they know what they're on about, but I'm just curious on how this works.
We managed to buy the house really cheap from our (at the time) landlords, and have since done a fair bit of work on the place.
With that considered, realistically it's worth ~20% more than we paid, especially judging off of similar houses in the street that have sold recently.
If we're to get a new deal, does the house get re-valued and then a new LTV becomes apparent with any new mortgage?
Initially we put 10% down, but would this inevitably change the LTV based on what we've already paid (plus overpayments we make), and the price increase of the house?
Ignoring any recent interest rises etc, I'm just curious on how it'll work, and clearly finance isn't my strong suit
We bought our first house a year or so ago, on a 2-year fixed rate.
At the end of this period, I'm aware that we can get a new deal, which I'd naturally leave to our broker as they know what they're on about, but I'm just curious on how this works.
We managed to buy the house really cheap from our (at the time) landlords, and have since done a fair bit of work on the place.
With that considered, realistically it's worth ~20% more than we paid, especially judging off of similar houses in the street that have sold recently.
If we're to get a new deal, does the house get re-valued and then a new LTV becomes apparent with any new mortgage?
Initially we put 10% down, but would this inevitably change the LTV based on what we've already paid (plus overpayments we make), and the price increase of the house?
Ignoring any recent interest rises etc, I'm just curious on how it'll work, and clearly finance isn't my strong suit
Sycamore said:
Hi All
We bought our first house a year or so ago, on a 2-year fixed rate.
At the end of this period, I'm aware that we can get a new deal, which I'd naturally leave to our broker as they know what they're on about, but I'm just curious on how this works.
We managed to buy the house really cheap from our (at the time) landlords, and have since done a fair bit of work on the place.
With that considered, realistically it's worth ~20% more than we paid, especially judging off of similar houses in the street that have sold recently.
If we're to get a new deal, does the house get re-valued and then a new LTV becomes apparent with any new mortgage?
Initially we put 10% down, but would this inevitably change the LTV based on what we've already paid (plus overpayments we make), and the price increase of the house?
Ignoring any recent interest rises etc, I'm just curious on how it'll work, and clearly finance isn't my strong suit
If you change lender then the new lender will instruct a surveyor to value the house, so you will benefit from any increase in the property's value.We bought our first house a year or so ago, on a 2-year fixed rate.
At the end of this period, I'm aware that we can get a new deal, which I'd naturally leave to our broker as they know what they're on about, but I'm just curious on how this works.
We managed to buy the house really cheap from our (at the time) landlords, and have since done a fair bit of work on the place.
With that considered, realistically it's worth ~20% more than we paid, especially judging off of similar houses in the street that have sold recently.
If we're to get a new deal, does the house get re-valued and then a new LTV becomes apparent with any new mortgage?
Initially we put 10% down, but would this inevitably change the LTV based on what we've already paid (plus overpayments we make), and the price increase of the house?
Ignoring any recent interest rises etc, I'm just curious on how it'll work, and clearly finance isn't my strong suit
You broker will be able to explain the potential outcomes for you
JP__FOX said:
Even if you don't change lender, they can still accept a higher value if you've done work etc. without having to send out someone to value it. There was a cap to this percentage but I can't remember what it was when I remortgaged with Santander to be honest.
They can only use the HPI figure which usually won't reflect improvements made to a property, only any generic increase in the value of properties in that postcode....Gassing Station | Finance | Top of Page | What's New | My Stuff