Lowering LTV on mortgage already offered

syliamarina

Hi all

I was wondering if anyone can give me a view on this.

We offered to buy a property 2 months ago. We got a valuation done and a mortgage agreed. 2 months later we got really fed up with the sellers doing absolutely nothing to progress the sale and as the offer was conditional to completing by September we pulled out this week.

We found a new property and got an offer accepted for a bit more than the original offer. We now have a larger deposit and we don't need to extend the mortgage. In fact the combination of a higher purchase price and the fact that we need slightly less as a mortgage have pushed to 85% LTV rather than 90% we originally had.

So although we had a good rate for 90% LTV, when we spoke to the bank we asked them if the offered rate could improve without us having to apply again. When we did the original application we could have got a 0.7% lower rate if we had 85% LTV at the time. They are happy to switch properties and they said they might be able to offer us a better rate.

So we are waiting to hear back, the chain is quite an aggressive one and the bank said about 5 working days to requote us with a new interest rate.

So we are now wondering if it's going to be an offer that is worth it or if it's likely to be either disappointing or a non-offer.

Anyone having a view on this?

Thanks very much and apologies if this is a confusing post, it's quite a complex situation.

Sx

Thrugelmir

Have you taken a look at the mortgages that your potential lender is currently offering?

Will give you an indication.

syliamarina

Hi Thrugelmir

That's the perplexing thing...we were offered a 5 year fixed rate deal for 90% LTV. At the time they had an equivalent 5 year deal for 85% LTV.

When I checked their rates they don't offer a 5 year deal for 85% LTV anymore, it seems to have been merged with the 90% deal.

That is why I was surprised when they said they may be able to offer me a better rate.

Their 2 year deal at 85% is currently 0.7% lower than ours. When we applied they offered this rate for 5 years fixed but they now have withdrawn it.

I wonder if it will be a non-offer in the end and we are delaying the chain for nothing...

Thrugelmir

Maybe worth investigating alternatives. As mortgage products are added and withdrawn all the time.