help with calculating figures please

paulkaty

hello all im looking to buy our first home soon but getting very confused as most do i guess, heres my first of probably many stupid questions,
we have a deposit of 22% leaving us a mortgage of 68% we would like to do a tracker with a rate of 2.95% which would cost us monthly £637, we could aford to repay aprox £800 a month
so if we over pay by £163 a month how long would it be before we end up with a ltv of 60% ?
i know that the intrest rate may rise or other factors may mean that these figures will change but its just to give me a rough idea, many thanks in advance

CLAPTON

how much the property
how much is the mortgage
over how many years
presumably a repayment mortgage

paulkaty

property is £200000
mortgage is £135000
over 25 years
yes repayment
thanks knew id miss something out,

Forever_Red

paulkaty wrote: »

we have a deposit of 22% leaving us a mortgage of 68%

That is only 90%. Do you have a deposit of 32% or a mortgage of 78%

paulkaty wrote: »

we would like to do a tracker with a rate of 2.95% which would cost us monthly £637, we could aford to repay aprox £800 a month
so if we over pay by £163 a month how long would it be before we end up with a ltv of 60% ?

Try Locoblades spreadsheet to see how your monthly payments reduce your mortgage Here

Hope this helps

Alan

beecher

The mortgage would have to decrease by £15,000 to get your LTV down to that level. Overpaying by £163/month isn't going to make a huge difference over the short term. Google an overpayment calculator to see, and remember to take into account the fact that base rates can only go up - and will.

paulkaty

sorry your right its a 32% deposit,
thanks ill try that now,

paulkaty

beecher wrote: »

The mortgage would have to decrease by £15,000 to get your LTV down to that level. Overpaying by £163/month isn't going to make a huge difference over the short term. Google an overpayment calculator to see, and remember to take into account the fact that base rates can only go up - and will.

its amazing what you can find on google never think to look thanks,
im thinking id have aprox two years before rates go up and id have to fix?

beecher

paulkaty wrote: »

its amazing what you can find on google never think to look thanks,
im thinking id have aprox two years before rates go up and id have to fix?

Who knows. And who knows if house prices will be higher or lower by then, so your LTV could be completely different to what you plan for. Just make sure you can comfortably afford interest rates at 8% or so and don't gamble on what the future holds.

paulkaty

beecher wrote: »

Who knows. And who knows if house prices will be higher or lower by then, so your LTV could be completely different to what you plan for. Just make sure you can comfortably afford interest rates at 8% or so and don't gamble on what the future holds.

never thought of it like that i was thinking ltv was on the price you paid so my ltv may go down if house prices rise, even happier now thanks

Cannon_Fodder

or your LTV may rise if house prices fall...

dimbo61

Stop worrying about the LTV and think about the mortgage debt!
You are putting down a good deposit.
think long term and 5 year fix or offset mortgage