What is our LTV?

*Summertime*

We have an outstanding amount of £152,000. The house is worth approx £180,000.

Also, when there is talk of a rise in interest rates how much notice do we have, how much time to fix something? Will it mean a mass rush of people trying to fix and therefore products harder to get hold of?

We made a poor decision when we took our first mortgage 3 years ago and fixed at a very high rate, 6 months later they dropped massively and while most were enjoying overpaying we could not afford any over payments at all.

I want to try hard to make a better decision this time round and am veering towards staying on the SVR in the hope that rates are going to stay low until possibly 2013....??

holly_hobby

Your LTV is 84%

The lender normally issues a months notice on SVR changes.

Rates staying low - well no one can gte that, no one knows, but considering the current climate and depressed recovery, I think they will remain pretty stable for the next 12 mths. (but don't sue me if BOE shake things up a little !!)

You may want to consider going onto a tracker mortgage - which will be a loading on BOE base for a scheduled period (select one with no penalties if you want the option of jumping onto a fixed rate if BOE base starts to increase).

There are a number of fee free (basic legals & survey) remortgage deals available in the market - although there may be a product fee for your chosen deal.

I would suggest you speak to a whole of market broker, who will source the most suitable lender to your requirements from the entire market.

Hope this helps

Holly

Farmerbob

Your LTV is just above 84%. If the Bank of England changes the rate (usually announced the first Thursday of the month) then your bank will then inform you of the rate change for your next payment.

I would not worry about any mass rush meaning that wont get a re-mortgage, as you already have a mortgage if you choose to stay with the same lender they wont ration the re-mortgages and just give you a new deal. If you choose to move lender then you should also be fine, but I would try getting your LTV lower to get better deal I would suggest get below 80% but you can always shop about.

Everyone seems to panic when they go on to the SVR I've noticed, 2 years ago I made the mistake of thinking the rates would go up as I spent too much time worried if they went up paying £199fee and 0.19pc more than the SVR its not much but a waste of money over the last 2 years, I'm now much more wiser and informed so will not be jumping on the re-mortgage bandwagon. I'm going to work on getting below the 80% LTV or lower if the rates start to go up I will be a lot more cautious. Here's hoping they will stay low until 2013 but who's to know!

dimbo61

You have been paying a "very high rate " for the last 3 years and are now on the SVR which is cheaper so why not overpay every month and improve your LTV so you can get below 80% LTV

Thrugelmir

*Summertime* wrote: »

I want to try hard to make a better decision this time round and am veering towards staying on the SVR in the hope that rates are going to stay low until possibly 2013....??

Then gain the benefit by maintaining your repayments at the same level as they currently are when moving onto the SVR.

The best way of saving interest on a mortgage is to overpay. Second guessing the movement in interest rates isn't possible. So take control of what you can impact.

getmore4less

What rate were you paying and what rate are you going to?


We made a poor decision when we took our first mortgage 3 years ago and fixed at a very high rate, 6 months later they dropped massively and while most were enjoying overpaying we could not afford any over payments at all.

If rates droppng is the only reason you think you made a mistake then why did you fix?

Fixing is rairly the right choice unless you have to protect your payment from going up(but that usually means you are streatching too much).

Fixing gives limitied time protection anyway so unless you have a plan for the end of the fix, like increased income, reduced lending, that will cope with rates rising(the reason for fixing) then the whole plan is flawed.