High LTV charge

benjaminwootton

Hi all - first time poster, long time lurker.

We're currently going through with a purchase via Abbey and have secured a 5.69% 5 year fixed rate with a few benefits for first time buyers such as cashback and free survey. We're fairly happy with what this offer after researching the various options.

We were dissapointed to find that we need to pay a £2k HLV charge due to us only having a 5% deposit. I've just done a bit of research and found that a number of providers do not charge this, but typically charge a rate well about our 5.69% on a 5% deposit.

Can anyone recomend anyone for us to check out who won't treat us too harshly for the 5% deposit?!

TIA
Ben

benjaminwootton

Two more things:

- Would Abbey consider scrapping the fee if we find an alternate mortgage and state that this is our reason for moving? (We are well within earnings multiples etc)

- If we were to move now (before completion, post survey) are we liable to pay Abbey anything?

TIA
Ben

mi-key

This is the problem, your 'free' survey and 'free cashback' come out of the huge HLC they are charging you, as does your lower interest rate.

You may find out it works out cheaper to get a higher interest rate, with no HLC ( which is a HUGE con - the HLC wont be £2000 - it will be £2000 ADDED to the amount you borrow, so you pay interest on it for 25 years as well, meaning its more like £4000 by the time you are done ! ) and no free bells and whistles.

We are FTB's and have 5.99% on a 5 year fix, no HLC, £250 setup fee and 95% LTV. This is with the Monmouthshire BS.

The only lenders we looked at who would lend to us at lower rates either had massive setup charges ( up to £3000 ) or HLC.

mi-key

One other thing - have you actually taken out the mortgage yet, or just got an agreement in principle ?

You'll find a lot of lenders have withdrawn their long term fixed rate deals this week and will be bringing out new ones after the new interest rate rise, and the Abbeys deal could be even less competitive.