LTV - What is the Value based on

CPS

To keep it brief - I am currently on Standard Life's SVR +0.20% (so 5.54%). Not great compared to other lenders. Whilst it makes good sense for most people on SVR's to stick with them, I think mine is high enough to consider moving to a Fixed Rate to protect against potential interest rate rises. Unfortunately Standard life are not offering any Fixed at the moment.

My LTV isn't great but if I go to a Mortgage Advisor or lender, what do they base the Value of the house at. Is it price of last house on your street sold? Or do they come out and value it themselves, even if Im just looking a quote for a mortgage? Or what other way is it done.

That and do any advisors think me changing to a Fixed (if I can get one) is a good idea? Outstanding Mortgage £129k however have £24k to put down once I decide what Im doing, so £105k. Value of house, no idea anywhere between £100k and £120k....

Thanks

beecher2

The value of the house would have to be £117k for you to be able to remortgage which is pretty much at the high end of your estimate. I'm not sure what they look at when you get a quote, but to get a real mortgage they will send out a valuer. Also remember you'll need money for arrangment fees - maybe £1,000.

Conrad

Valuers tend to call 2 or 3 local agents as part of thier assesment.

Assuming a LTV of 85%, the fixed rates available maybe higher than you are reasonably prepared to pay.

CPS

Thanks Conrad - I woudl say the best I am going to do is 90% LTV. However, accoridng to their websites, a lot of my local lenders (Ulster Bank, Bank Of Ireland, Northern Bank) & Santander appear to be offering between 5.5% - 6% with arrangement fee for 90% LTV. If this is the case this is only a few ££ more per month (after the set up fee) I am paying now with a bit of security thrown in.
Are you surprised these figures are being offered? Perhaps I am misreading them

beecher2

They sound about right for 90% LTV. In fact my lender's only offering 6.5% for up to 85% LTV. How long would it take you to save enough to get down to 80% LTV? You could go on the Debt Free Wannabee forums for help in cutting back elsewhere in order to overpay as much as possible while you're on the SVR.

CPS

I have my money very much under control with various accounts and spreadsheets so that isnt a problem. My main probelm is I bought at start of 2007 so to get my mortgage to where it is now has already been a huge push (I am already overpaying by £500 per month). Child on the way in the Summer so aint going to get much lower than 90% but Ill go to a mortgage advisor anyway and see what happens. Thanks

VIGILANT22

Conrad wrote: »

Valuers tend to call 2 or 3 local agents as part of thier assesment. .

...Hmmm.......They don't have RICS surveyors in your area then! Just guys who phone estate agents for comparables....:rotfl: