Fixed Mortgage ending soon

kier333

My current Mortgage is due to expire fromits fixed rate end of Januaray, I purchased the house August 2009 and borrowed 114k on the purchase price of 128k, it was a property that someone had px to a developer. I beleive the house to be worth around 140k or maybe just slightly under. What i want to work out is my LTV, I am with HSBC and as i have around 112k outstanding on the Mortgage, could get them to agree its worth 140k this would mean i could fix in to a 80% LTV deal rather than a 90%. I have no idea how any of this works and was wondering if anyone could shed some light?


Many thanks in advance.

Yorkie1

They will do their own valuation and calculate the LTV from that. There is very little you can do to influence it I think.

Unless £128K was really under market value, and other similar houses have recently sold for £140K, you may be optimistic about its value having risen by £12K in 18 months.

kier333

It what Zoopla valued it at and to be honest both my neightbours paid 152k and 157k, the latter being end of terraced in 2007, no saying that mine is valued at 140k, however the developer gave 130k in the px deal. Most houses around me are on at 145k and are a simular size etc, i did get a letter middle of this year where the bank had valued it at 136k, just came out of the blue for some reason.

whatyadoinsucka

i remortgaged with hsbc in march 2010, after taking out a mortgage with a 12% deposit on house paid £145k in Oct 2009,
got lucky with a little inheritance, and borrowed 7k of the parents and got to the 75% LTV which reduced my rate from 4.6% to 2.5% variable. Just about to repay the parents as have saved to repay them with interest..

anyway if you can get to a lower LTV you will get a far better rate, (check the 20% rate) your problem could be the valuation, its unlikely they will even come and assess the value, when we remortgaged they valued my house at £146k all done over the phone, our house was purchased at far lower (£30k) than the previous sales of houses in the past few years (yes i know we've slumped)

so ring them and see what they say
£112k / 0.80% = £140k
if they don't value at £140k can you borrow off a parent to get the rate down. if the rates are far lower every 1% is worth over a grand on your mortgage, so you can afford to repay borrowings.

kier333

Thanks, i could raise 5k myself no problem, tell me once out of the fixed period can you pay off as much as you like in a lump sum? And what about the letter saying that they had valued it at 136k june/july 09. Like i said i moved in 08/08 but got the mortgage in jan 08 so fixed period expires then or so hsbc tell me even though i did not draw down the funds. Is this correct?

whatyadoinsucka

just a thought maybe worth waiting to see what the hsbc sale in january has on offer..

the fixes are far lower than a year ago, 2 year fix was always 6% plus now its only 3.7% on 80%ltv £199 BF

even 5 year is 4.79% not a bad rate, but I'm gonna hold onto my variable and see what happens next year, trying not to panic if rates go up 1% in the first quarter. I think I'll try and fix in at 70% LTV come this time next year

kier333

sorry my dates are wrong i moved in 08/09 and got the letter from hsbc in june/july 2010

kier333

what i would love is a 5yr + fixed at around 5%

kier333

I was just looking on rightmove and a house the same as mine just around the corner is on for 147k, surely mine must be worth say 137k. i will happily pay of the difference to get the ltv to 80% as i have an advanced account and get get a fixed 5 yer at 5% with a 199 bf

whatyadoinsucka

I'm on a variable HSBC and i overpay 125% a month on my actual figure, but it is unlimited, we got the mortgage on a 30 year just to reduce the capital repayment element

whatyadoinsucka

fixed versus variable is a tough call, we saw two advisors who said go for a fix, we then saw another guy and he said variable all the way.
i think a 5 year as quoted above is a very good price for security, I'm tempted to take the risk for another year, i can't see rates going sky high. but personal circumstances need to be taken into account.