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What is the process for remortgaging our house?

by deborah007 07 August 2010 |

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We bought our house last year and the mortgage deal we got expires in June 2011. What process do we go thrhough to find another mortgage deal? Do we need to get the property valued ourselves? We got a 90% LTV mortgage the first time but if the property has increased in value we would be looking to go for a lower LTV. How do we know what the value is? Do we need to get the solicitors involved? I know I am asking early but if we have a load of expense to come (fees etc) then we need to start saving!

Thanks in advance

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SoftwareBear posted
Well done for thinking ahead.
When I did it there was no physical valuation of the property by a surveyor involved. They can estimate the current value from the vital statistics of your house and local and national stats and market behaviours. They also kind of trust the previous mortgage providers too. They will ask you too, probably to see how honest/aware you are.
This was for a brand new house though ... not sure if it is different for an older property.
As long as you're in the right ball park .. they probably won't worry too much ... but if there is a chance that your equity is less than before it might be a different story.
The new lender will do the legal side of things ... as all that is changing is the provider of the mortgage ... the property isn't changing ownership ... so this is partly what the new fee pays for.
If you have a large penalty fee then you will need to time things quite well, although the difference it would make within the deal term is negligible ... but the day after it ends it's free (ish). Remember you still have to pay the mortgage wind up fees etc ... these can be added to the new mortgage you obtain or paid separately.
You can usually sign up for and keep an offer of a mortgage for about six months ... so start looking for deals from January ... you'll need about two weeks for it all to be sorted out start to finish at a minimum once you commit to the offer.
if you're thinking of switching now to take advantage of tracker rates ... i'd think again ... your LTV is quite high ... please do the sums for ALL charges involved to see if it is really worth it over the next two or three years or so.
Posted on 07 August 2010 | Love 1 love Report
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MikeGG1 posted
It is always a good idea to save, but do not expect to be able to achieve the next LTV level of 85% without price improvement or savings.
If you can achieve it then go for it. Otherwise your first target for savings should be to make sure that any credit card debts are cleared each month by the due date so that you don't pay any interest there.
Interest rates could start to rise in a few months, so get an offer as soon as you get within 6 months.
Mike
Posted on 08 August 2010 | Love 1 love Report

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