80% ltv interest only.. FA said none about and I have found at least 3? Confused

worc

Hi, I have bought a couple of properties in the past and always used the same FA. He is whole of market and doesnt charge (gets fee from Mortgage company).

I am now looking to get back on the property market having sold my last house last year and have been renting.

I have found a house which needs some work doing on it so wanted to make use of the lower interest rates and go for a interest only for a 3 year fixed at 80% ltv.

However, My FA has stated that all lenders will only look for at a max of 75% LTV on interest only at the minute.

I have done some research and found at least 3 at 80% (10 minutes internet search), I have the mortgages companies I have found and they have confirmed they do interest only @ 80% ltv for 3 year fixed (leeds BS being one) Ingdirect said they would do a 75% interest only and 5% repayment. Why hasnt my FA advised on these or are they not available through a broker?

Affordabiliby isnt an issue and I have clean credit score.

Thanks

Liam

betmunch

You'll have to ask him why he hasnt recomended them, only he knows your situation well enough to say whay he has or hasnt done something

kingstreet

The problem I can see is not getting you the mortgage you want, it's justifying the level of LTV for "interest-only no repayment vehicle" as it's known.

You mention the Leeds. This is from their online latest news for Feb 2010, so a year old;-

Higher Risk Repayment Strategies

The Society regards the following (non-investment based) repayment strategies as higher risk, and a maximum loan to value of 75% applies in these cases:

Inheritance;
Sale of property

The sourcing system, Trigold, shows a few lenders still offering interest-only upto 80%, however your intermediary may be aware that you will not be successful in applying for such a deal if the repayment vehicle is "sale of property."

worc

Not sure what happened to my reply as it isnt showing.

I have contacted the FA who told me Leeds were not on his pannel (seems odd being whole of market and having lenders not on his pannel, although i dont honestly understand it fully.)

My repayment vechicle would be an ISA, being only 24 I have many years to save the remaining money!

I showed the FA the 3 yr fixed deal @ 80 LTV and he said he couldnt beat it.

"The sourcing system, Trigold, shows a few lenders still offering interest-only upto 80% ltv"

Which other lenders so i can go compare?

Many thanks

Liam

kingstreet

Sorry. I erroneously assumed you were looking for a no repayment vehicle offer. Please note your ISA and assumptions for future growth must meet the lenders' requirements.

Your intermediary will know much more about your circumstances, so I'm providing this list for information only. This is not an indication of lenders who will positively view an application, merely those showing acceptance of an 80% purchase application on an ISA/Int-Only basis;-

BM Solutions
Clydesdale Bank
Dunfermline BS
Halifax
ING Direct
Leeds BS
Nationwide BS
Nottingham BS
Principality BS
The Mortgage Works
The One Account
Yorkshire Bank

Available products, criteria and geographical terms vary from lender to lender.

Liam - I also can't see a Leeds 3 year fix. I can see a fix at 4.49% until 31/03/2012 with a 4% discount until 31/03/2014. I've got introduced and direct products on the screen. Can you be more specific with what you've seen?

kingstreet

Found a few more to add to the list by playing around with the settings;-

Aldermore
Barnsley BS
Beverley BS
Bath BS
Cambridge BS
Darlington BS
Dudley BS
Hinckley & Rugby BS
Ipswich BS
Kensington
Loughborough
Market Harborough
Marsden
Melton Mowbray
Progressive
Scottish
Teachers
Vernon

worc

3 Year Fixed Rate up to and including 31 March 2014 on leeds website

kingstreet

worc wrote: »

3 Year Fixed Rate up to and including 31 March 2014 on leeds website

4.53%? Yes. I see it on their site.

The Loughborough and ING Direct deals look tasty. The right one depends on how much you need to borrow. The LBS is lower rate, bigger fee. ING has the opposite.

Moomum

We have just got a 85% interest only mortgage from Nationwide through our broker. There are quite a few out there as can be seen above. Strange that a whole of market broker wouldn't know this

Meeper

For 85% interest-only with Nationwide, you will have need to have stated on the application exactly what your repayment vehicle is, which company and a reference number for the policy / plan.

dunstonh

I have contacted the FA who told me Leeds were not on his pannel (seems odd being whole of market and having lenders not on his pannel, although i dont honestly understand it fully.)

For cases that are more complicated its often worth seeing a whole of market mortgage adviser or an independent mortgage adviser. Some not so good FAs (and indeed mortgage advisers) will be panel based and that can be next to useless unless you are mainstream.