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Original poster

remortgaging

19 replies

stainesmassif · 27/06/2009 19:05

gaaaaaaah. does this sound realistic?

when we last remortgaged two years ago the house was valued by halifax at 270k.

now it's time to remortgage our financial advisor has looked at halifax's on line records and apparently our house will be valued at 200k only - putting us into negative equity and making our ltv ratio much worse.....other houses, v similar to ours and in our area are on the market at 265k....the financial advisor doesn't seem to think it's worth getting the mortgage co out to value the house in person...am i right in thinking this is a huge con perpetuated by mortgage cos to force me into paying a much higher interest rate?
actual mortgage value is 243, plus we have 20k saved.

any ideas on what we can do to get around this or am i being very naive?

OP posts:
duckyfuzz · 27/06/2009 19:08

why do you have to remortgage? rates are so low at the moment that most SVRs are lower than fixes

Original poster
stainesmassif · 27/06/2009 19:08

ps, according to land registry average house price for semis similar to mine is 244. where does the halifax get 200 from???

OP posts:
Original poster
stainesmassif · 27/06/2009 19:09

that's kind of what i was thinking, but this is advice from financial advisor (fa from now on) - i guess we don't know what's going to happen re interest rates - plus would like to fix now as going to try for more children early next year

OP posts:
duckyfuzz · 27/06/2009 19:11

I'd do your own research on rates, then get a few estate agents out as if you're planning to sell, then take it from there

Original poster
stainesmassif · 27/06/2009 19:15

the fa seems to think that the valuation by the mortgage co has no bearing on any by estate agents??? is that right? or do i just have an extremely lazy fa?

OP posts:
duckyfuzz · 27/06/2009 19:19

well if it doesn't, there's no real reason for it to have gone down so much in my (not very knowledgeable) opinion!

Original poster
stainesmassif · 27/06/2009 19:21

ah, i guess i'm going to have to tackle the mortgage co head on. feckers.

OP posts:
Tinker · 28/06/2009 11:45

Could you try and fix with your current lender? We were offered that by Britannia so no revaluation of the property needed. And no fees and lower rate than our current one.

risingstar · 28/06/2009 12:16

would echo approaching current lender first and seeing what they can offer...we are with Nationwide on their 2.5%svr but they told us we could pick any offer at any point . have done several times over the years, no revaluation just bits of paper to sign. Do this first before a FA persuades you change lenders

noddyholder · 28/06/2009 12:20

Prices are down 20% on 2 yrs ago so prob ore like 215k.My parents bought a house in jan 06 and have just accepted an offer 27% off its original price.Could you pay your savings into the mortgage to lower the ltv.Surveyors are valuing low atm

whereeverIlaymyhat · 28/06/2009 12:32

2 years ago the banks/building societies were over valuing and now they are under valuing so I get where the £200k comes from.
I'd use the savings to lift the LTV and thank the lord you have that option.
This is where the re possessions will come from for those of you looking to buy houses 40% cheaper than 2007.
Everyone is treading water right now because rates are low, factor in the unemployment issue 40/50% off is not unrealistic at all, putting your semi at £135k.

Original poster
stainesmassif · 28/06/2009 12:51

fa is advising that we stay with current lender....will wait and see what he has in writing for me. prices in our area seem to have remained stable - surely this must have a bearing? it just seems that the bank have all the cards. where are my cards?? apart from the massive amount of money that i'm going to end up paying them.....

OP posts:
whereeverIlaymyhat · 28/06/2009 13:02

That's how it works, get rid of all debt as fast as possible, we don't earn much - £60k tops but paid our £200k mortgage off in 8 years. I would throughly recommend throwing every penny at it for the next few years, you won't miss a few holidays but will literally save thousands of pounds.

Original poster
stainesmassif · 28/06/2009 13:50

wherever, yes, you definitely have the right idea! holidays with kids are too much work amyway, we're going to camp in the back garden til the as yet unborn youngest is 10 years old

OP posts:
noddyholder · 28/06/2009 17:21

It is great to be mortgage free but mega hard work!

whereeverIlaymyhat · 28/06/2009 17:32

Everyone should have a virgin one mortgage it literally saved us around £100,000 by calculating the interest daily and it wasn't that painful at all.

noddyholder · 28/06/2009 18:20

I think I did it the hard way!

Original poster
stainesmassif · 28/06/2009 20:36

wherever - that's how they do mortgages in oz, i don't think our ltv is good enough for the virgin one mortgage - have looked into similar mortgages before, don't you need 75% ltv?

OP posts:
whereeverIlaymyhat · 28/06/2009 20:44

I think it might be a case of next time the prices shoot up again go for an off set mortgage then, we want to move up the ladder but mortgage rates are holding us back even with what would be a 50% LTV.
It's going to be a blood bath next year IMO
I guess you have to shop around and fix if it's less than 6%

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