5yr Fixed ending in May... House Value decreased... BIG TIME

Amiz87

even better news, Just called the mortgage company to set it all up and they valued my property at £157,000 which means we are 99% LTV which also means we qualify for an even better rate of 4.89% on a fixed 2 years.

So freaken happy right now....:j

sorry asandwhen it was your recommendation....dont think my brain was fully engaged this morning, so an HUGE thank you to you!!!

asandwhen

If you were expecting 5.19 maybe you should take the 3 year fix at 5.09 gives you more time to get that LTV down for next time.

I would imagine that they use the Halifax price index to value your house and there was a jump in January that has taken you within the 100% mark.

MissMoneypenny

Sammie_UK1 wrote: »

Im referring to houses bought in the property market and not tennants being evicted by greedy landlords who are charging extortionate rents for sub-standard properties.

I was referring to bought houses too.

A lot of landlords in London will lose their tenants as they get their rent from benefits and these welfare rents are dropping this year and will then be fixed, so no more big rent rises funded by the welfare state. Then next year is the welfare caps which will affect a lot of those claiments in London and then Universal Credit with it's capital rules and conditions. DLA is going too and other welfare payments are being reduced.

Basically, there will be no extra money from welfare claimants to top up their rents in London and many will have to move out to cheaper areas. Those landlords will have to look to compete with other landlords, for the private renters. Plus mortgage rates are on the rise.

Sammie_UK1 wrote: »

London is always the exception to any rule..

London does get affected by boom and bust too and it always has. Maybe zone 1 will get some protection from foreign buyers, but other zones will fall and some already have. I come from a long line of Londoners and we have seen this boom and bust many times before.

What we use to see was London prices falling (or rising) and then the rest of the country following. Houses use to be cheap "oop north" but then over the last few years, they have had massive rises to close the north south divide slightly and then they had big falls again. Because of this, I don't think the falls in London will seem to be as bad as northern parts; unless Hong Kong magages to lure the banks away with the very atractive low taxes they are offering the banks and their workers. Hong Kong has 15% income tax for high earners and yet in the UK, they pay 50%.

JimmyTheWig

asandwhen wrote: »

was it JimmyTheWig??

Best I did was to highlight your suggestion!

Amiz87 wrote: »

even better news, Just called the mortgage company to set it all up and they valued my property at £157,000 which means we are 99% LTV which also means we qualify for an even better rate of 4.89% on a fixed 2 years.

So freaken happy right now....:j

This is great news, though I'm confused by the numbers. You said your mortgage balance was £160,000, which is 102% of £157,000.

asandwhen wrote: »

If you were expecting 5.19 maybe you should take the 3 year fix at 5.09 gives you more time to get that LTV down for next time.

Ooh, that's a tough call. It's a gamble on what you think interest rates are going to be like in two years time. My gut feeling would be to go for the lower rate for 2 years but overpay by the difference between this and what you were expecting to pay.

Amiz87

yes we are going to be paying the £1084 (based on what we thought it was going to be) but less interest so were paying more off the balance so £430 a month to be exact.

the two years is definatly better as in two years we can pay £10,000+ off so that will bring it down to £150,000 ish and i reakon we could get £155,000 - £160,000 for the house by then as we are currently undergoing a refurb (new kitchen etc)

thank you all for your help again, feel good about it all now, was very worried for a while!

JimmyTheWig

Amiz87 wrote: »

yes we are going to be paying the £1084 (based on what we thought it was going to be) but less interest so were paying more off the balance so £430 a month to be exact.

This is an incredibly sensible plan!

Amiz87

thank you. we are going to use the extra money for the first 7 months to clear off a loan and 2 credit cards. that way when we do start paying full repayment each month it wont be such a big increase as we will be £220 a month better off from not having any debt...:rotfl::rotfl::rotfl:

JimmyTheWig

Amiz87 wrote: »

thank you. we are going to use the extra money for the first 7 months to clear off a loan and 2 credit cards. that way when we do start paying full repayment each month it wont be such a big increase as we will be £220 a month better off from not having any debt...:rotfl::rotfl::rotfl:

You could add that £220 a month to your mortgage payments if you think you could cope. Or maybe half of it?
Up to you, but it will certainly help make a decent improvement to your equity.