LTV ratio help

yesness

For give me if this is a no brainer... at the moment (36 weeks pregnant) I feel like I have no brain!!

Have just spoken with mortgage company. We are on IO mortgage fixed rate ends in July 10. We bought our house for 164K and took out 90% mortgage. The mortgage lady has said our LTV is now 111%... can I work out the value of the house from these figures? I'm looking to overpay my mortgage so that we would need an 85% by July.... can anyone help.... brain is very much mush!!!

Thanks

yesness

Should have said our mortgage stands at around 151K currently

jamestap

Hi yesness,

I'm no expert but some simple calculations seem to indicate:

With an outstanding mortgage of 151k and an LTV of 11%, your property has been valued at approx 136k.

To get down to an LTV of 85%, you'd need to decrease your mortgage to approx 115k, or make capital repayments of approx 5k per month.

If your house were to increase in value by July that would make things easier, but I wouldn't rely on that!

HTH!

James

foreversummer

What rate do you revert to when your fixed rate ends? Do you have any kind of repayment vehicle in place?

Foreversummer

yesness

Thanks for response... when I had sat down and thought about it I managed to work it out... bit embarrassed by the simplicity of the sum!!

We go to is it PVR? She said 2% above base rate....

Don't have any repayment in place yet, just about to start.