I am hoping that you lovely peeps might be able to help me understand better my situation so we'll make the best decision. I apologise if this situation had been answered before but I could not find it whilst searching.
So...Bought our house almost 3 years ago and our fixed rate will end in March next year. Our fixed rate was 6.59% over 30 years. House was bought for £152 000, and borrowed £136 000 plus £999 fees added to the mortgage. Monthly payments are £874. House was valued at £151000 at the time.
Now, a couple of houses on our road sold this summer, same as our one, for £160000 and £168000. I understand that when remortgaging, a new valuation will be carried out, so will/can our house be valued at more than we had paid for and how this will influence the new interest rate?
Also, when remortgaging, we would like to keep our monthly payments around the same as now, so will it be better to reduce the term of our new mortgage, say from 27 years to 20, assuming we find a good interest rate, or keep the term as it is and overpay? Also it is best to fix for 2, 3 or 5 years?
Thank you all xx
So...Bought our house almost 3 years ago and our fixed rate will end in March next year. Our fixed rate was 6.59% over 30 years. House was bought for £152 000, and borrowed £136 000 plus £999 fees added to the mortgage. Monthly payments are £874. House was valued at £151000 at the time.
Now, a couple of houses on our road sold this summer, same as our one, for £160000 and £168000. I understand that when remortgaging, a new valuation will be carried out, so will/can our house be valued at more than we had paid for and how this will influence the new interest rate?
Also, when remortgaging, we would like to keep our monthly payments around the same as now, so will it be better to reduce the term of our new mortgage, say from 27 years to 20, assuming we find a good interest rate, or keep the term as it is and overpay? Also it is best to fix for 2, 3 or 5 years?
Thank you all xx