Hi there,
I have a question about choosing a new mortgage rate. Im currently with RBS as my mortgage provider, and my current rate option is coming to an end in a months time. They have sent me a letter giving me options on new rates.
The current mortgage is a 100% mortgage, taken 5 years ago, so the product im currently on is a >95%LTV product. However, now the value of the house is far greater than the amount of the loan, yet they have only offered me the rates that apply to >95%LTV products. Their remortgage rate for the product they have offered me is 5.79% on a 2 year fixed. However, they have rates on their website of 5.39% fixed for 2 years for remortgages (and even lower, 4.99% for new house buyers
- but im not sure if this rate would be obtainable).
Before i phone them up, i just wanted to check if there are any reasons why i wouldnt be able to switch to one of the lower interest rates. Is it a case of them having to do another valuation on the house? I expect that in the long term, the cost of the valuation would be outweighed by the savings made from the lower interest rates. Is this correct??
Any input greatly received
Many Thanks
Mark