Leave fixed rate early & LTV

guido75

Hi everyone.

I've got 6 months left on my £239,000 fixed rate mortgage and am tempted to get a cheaper fixed, or possibly a tracker mortgage as it i calculate it will save me between £250 and £650 per month. My early repayment penalty is £3500 if i leave now and the LTV will be around 75%. If i stay 6 months i may find a cheaper mortgage, but with house prices dropping every month, the LTV may become 85% which means i will get a much less favourable rate.

Anyone else in this position? Any advice would be welcome.

dwsjarcmcd

Not in you position but you could research those lenders whose offers last 6 months and get a deal with one of them if possible. That way you protect your LTV and save yourself money on early repayment charges and get the rate/product you are looking for.

herbiesjp

Exactly

This will be very tight, but in theory you would need to get a valuation done asap with a lender who issues offer letters valid for 6 months.

That way you lock your property valuation at the 75% level (hopefully) and get a good deal at that LTV.

If you wait longer deals could potentially be worse due to the increasing LTV based on your house value going down.

Get a broker to help you with this asap, as they will be able to steer you towards good deals from providers with 6 month offers