LTV / Remortgage

kriss_boy

According to LLoyds TSB our lender we have to maintain 90% LTV wwhen moving house to a more expensive property.

I saw a property on at a fixed price of 125K and it is very promising. Now my parents and my brother are both banging on about how good a bargain it is.

Realisticaly is an lender going to allow me to move outwith that 90% LTV.

If we got the place for a cheeky 115K, but sold our house for 85K (break een on it) then our LTV on the new mortgage would only be about 95%....

We would only really be bringing 7 grand to the new property. Is that possible?

luckyfool

Possible, but very unlikely. I wouldnt be surprised if 90-95% comes back stronger in the next 12-24 months as it becomes hopefully clearer that prices have bottomed out . . . but at the moment lenders just dont want to lend at this level.

If your parents have 20% of the property value that they are willing to lock into a Lloyds TSB bank account indefinitely then you can get a 95% deal with them. Of course its effectively a 75% deal!

unite79

No - Its 90% full stop.

kriss_boy

luckyfool wrote: »

Possible, but very unlikely. I wouldnt be surprised if 90-95% comes back stronger in the next 12-24 months as it becomes hopefully clearer that prices have bottomed out . . . but at the moment lenders just dont want to lend at this level.

If your parents have 20% of the property value that they are willing to lock into a Lloyds TSB bank account indefinitely then you can get a 95% deal with them. Of course its effectively a 75% deal!

My parents keep suggesting that they are more than happy to give me 20/30K for a bigger house if I pay the difference on their mortgage.

But its not fair as they are on the home stretch with theirs and would otherwise be mortgage fee in the near future.

I do like my house but Im itching to get a bargain!!! Feedback from the estate agents is that everythings going below the asking prices.

luckyfool

Thats the reality for alot of people with parents having to help out. If you are in the position to be able to pay that 20-30k chunk of their mortgage (and potentially put it over a short repayment period) then that could be a solution that would get you a much better rate on your mortgage as well.