Hi all,
We're FTBs who have been trying to get our heads around mortgages for a while now. It's slowly sinking in, but one clear answer I'm struggling to get is on "re-mortgaging" with the same lender.
For example: moving in tomorrow on a 90% LVT, overpaying (or at least saving a huge amount extra to avoid repayment charges) over the next few years, then re-applying for, say, a 80 or 75% LVT and subsequent better rate.
There's the theory, but I'm struggling to find more info about it working in practice.
Is it as straight-forward as it looks? Does the interest vs capital re-payment balance in the initial years of the mortgage, or the potential for house price rises in the intervening years make it tricky to achieve in practice?
Is it still classed as a re-mortgage and does it thereby still incur the associated fees?
Any advice would be hugely appreciated. Basically we're in a decent position to save a fair bit of money over the next 18-36 months, but for several reasons we're reluctant just waiting that long to save up a bigger deposit (planning for kids imminently/current attractiveness of fixed-price mortgages/rental increases in our area - East London) so have been looking at the various low deposit/early switching strategies (shared ownership, interest-to-repayment mortgage switching, 30-year to 25-year switching etc.)
We're FTBs who have been trying to get our heads around mortgages for a while now. It's slowly sinking in, but one clear answer I'm struggling to get is on "re-mortgaging" with the same lender.
For example: moving in tomorrow on a 90% LVT, overpaying (or at least saving a huge amount extra to avoid repayment charges) over the next few years, then re-applying for, say, a 80 or 75% LVT and subsequent better rate.
There's the theory, but I'm struggling to find more info about it working in practice.
Is it as straight-forward as it looks? Does the interest vs capital re-payment balance in the initial years of the mortgage, or the potential for house price rises in the intervening years make it tricky to achieve in practice?
Is it still classed as a re-mortgage and does it thereby still incur the associated fees?
Any advice would be hugely appreciated. Basically we're in a decent position to save a fair bit of money over the next 18-36 months, but for several reasons we're reluctant just waiting that long to save up a bigger deposit (planning for kids imminently/current attractiveness of fixed-price mortgages/rental increases in our area - East London) so have been looking at the various low deposit/early switching strategies (shared ownership, interest-to-repayment mortgage switching, 30-year to 25-year switching etc.)