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Ltv?
dafcjim
Posts: 9 Forumite
Hi there,
These may seem like basic question's but it's messing with me and I just can get my head around them.
I am looking to sell my first house next year when my mortgage expires. I am aware of the LTV being a big factor when selling or getting a new mortgage.
Is LTV calculated from my current mortgage outstanding vs current house value ? ( I'm getting confused at this point as I want to purchase a house worth more then mine, which obviously means borrowing more). I stand to make just over £20k from the sale which will be the next deposit.
As it stands I have a LTV of 81%.
I see a lot of mortgages are MAX LTV 60% - so these deals are no good for myself?
thanks
These may seem like basic question's but it's messing with me and I just can get my head around them.
I am looking to sell my first house next year when my mortgage expires. I am aware of the LTV being a big factor when selling or getting a new mortgage.
Is LTV calculated from my current mortgage outstanding vs current house value ? ( I'm getting confused at this point as I want to purchase a house worth more then mine, which obviously means borrowing more). I stand to make just over £20k from the sale which will be the next deposit.
As it stands I have a LTV of 81%.
I see a lot of mortgages are MAX LTV 60% - so these deals are no good for myself?
thanks
0
Comments
-
No. The LTV is the amount of your net mortgage divided by the price of the new property.
For example, if you buy for £200k with a £150k mortgage, that's a 75% loan to value.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
ding! penny's dropped!
thanks0
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