LTV and valuation question

Mrs_Chicken

I might be wrong, but I thought that if the application could not proceed because of something on their side, ie if they are unwilling to lend due to unexpectedly high LTV, then they would refund the booking and valuation fees?

Locoblade

Possibly, especially if it was marginal but I don't think it says anything to that effect in the T's and C's. If it was way out though and they believed you'd been overly optimistic with the valuation and in effect wasted their time applying then I wouldn't be suprised if they kept the fees paid as a charge for the work done to reach that verdict.

shell1000

i would be very wary of the offer you have from your current mortgage provider, the fees are expensive.

I think 12 weeks was what i was quoted for my remortgage with FD.

In terms of the survey ive paid 180 for an internal inspection just to be sure i gain all my value for the LTV. I think that is probably the best you can do but call them, they are really helpful.

atlantis187

Thanks for the really usefull information locoblade

There are currently 23 Years left to run on my mortgage after the 2 year fix with RBS finishes this November.

The reason am looking at a offset is to finish it off several years earlier.

Does anyone have a online calculator that works out if i went with FD and paid capital repayment every month as well as putting £500 into linked saving account how many years will it take me to pay the loan off?

Locoblade

According to the spreadsheet Ive built (not quite finished yet but will post a link for anyone who's interested soon), the RBS offer would give you the following:

£964 a month basic repayment
£132,500 left on the loan at the end of 5 years

A 5 year fix with FD (£799 fees added to loan) would give you:
£990 a month repayment
£130,478 left on the loan. (assumes average £2k average offsetting in current account)

If you overpaid that £26 difference in monthly payments onto the RBS mortgage you'd end up with £130,720 left on the RBS loan, so on that basis Id say the FD is still marginally better for you, and that doesn't take into account the offset facility etc.

If you put £500 a month into the FD offset savings account, by my calculations you'd have enough money in the pot to pay off the mortgage in 11.5 years assuming 6% remortgage rate/SVR, so at that point could either pay it off in full there and then, or use the offset pot to pay the mortgage each month interest free. That would take 17 years to pay off this way, dribbling money out of the pot each month to pay the monthly. Either way though, after 11.5 years the monthly mortgage wouldn't be coming out of your monthly salary, dribbling it over those last 6 years gives you the fallback of having those savings available if your circumstances change but the costs would be the same overall.

atlantis187

Sorry another question?

First Direct dont have any branches so how would I add money and withdraw money from my saving/current accounts say if I wanted to withdraw a large amount at once and cannot use the cash machines to do this? Can you go to another branch to do this?

Locoblade

If you need to withdraw cash etc you can bank with them via HSBC branches if need be. If just transferring money between FD savings and non FD savings etc though, in many cases you can access savings accounts online (ING, Kaupthing etc) and just do the transfers directly from there to your FD account, without physically withdrawing cash from anywhere.

With the FD savings accounts etc, they're obviously all within your FD online banking so you can move money online between FD accounts at will.