Any great 90% LTV mortgages worth jumping on...

RedfordML

I am currently on a SV rate which is 4%...

Had a look cant find anything better than 4.19% for 90% + £1500 arrangement fee, which ideally I would avoid...

ACG

There are 4% deals possibly slightly sub 4% but with arrangement fees of approx £1k you have to decide whether its worth doing or not.

RedfordML

ACG, what providers are offering these, best I have seen is 4.19% with £1.5k fees...

ACG

Im not allowed to say, as its a regulated industry if i say who the lenders are then it could be seen as leading/advising, also i could be incorrect - last month i did 2-3 90% mortgages to the same lender, but it could have changed since then.

I also get paid for the advice/research i give - but thats not the reason im not saying. Im over cautious as i dont want to do anything that would risk me losing my license. Speak to a broker?

They will do a factfind and the research for you. If an hour of your time saves you however much money then surely its worth it?

jamesd

How are you on affordability? Could you perhaps get to 85% LTV by using 0% for purchase credit cards and saving the money you're spending to reduce the amount you need to borrow on the mortgage?

The credit card debt will reduce affordability but the savings will decrease LTV. So if you have affordability margin it can be a useful option to get over a LTV threshold.

marathonic

There are good comparison tables to use as a guideline in the website below (just select the mortgage type from the dropdown box).

http://www.money.co.uk/mortgages.htm

However, and this is particularly true when borrowing at 90% LTV, the mortgage brokers will have a better idea who is more likely to lend to you given your personal circumstances.

There's no point in applying for 2 or 3 best buy products only to be turned down by them all. At that point, further lenders you apply for may get nervous and wonder was there something the other lenders saw that they don't see that makes you a risky customer.

However, the above is good to see the difference that having an extra 5% deposit can make.

kingstreet

So, you're looking for a 90% remortgage?

Is this a straight refinance, or are you borrowing more? Are you sure the property is worth what you've estimated? How have you estimated it?

marathonic

jamesd wrote: »

How are you on affordability? Could you perhaps get to 85% LTV by using 0% for purchase credit cards and saving the money you're spending to reduce the amount you need to borrow on the mortgage?

The credit card debt will reduce affordability but the savings will decrease LTV. So if you have affordability margin it can be a useful option to get over a LTV threshold.

I agree with this. With a difference in rate between an 85% LTV and 90% LTV of around 0.75% with most lenders, I'd think long and hard before paying a high arrangement fee on a 90% LTV mortgage.

It'd be much better added to whatever other money you can source to help get the LTV down to 85%. Of course, personal circumstances may mean that the fee is worth it - for example, if you don't see yourself getting to 85% in the next year or two due to a high value home or low savings rate.

pjread

best I found was 3.99 when I bought almost a year ago, Britannia... best rates at the time were them/coop and first direct I think. From memory I think they're both direct business only so might be worth a look? Though still speak to a broker may be best.

betmunch

ACG wrote: »

Im not allowed to say, as its a regulated industry if i say who the lenders are then it could be seen as leading/advising

I wish more people understood this, I rarely post because of this now.

I often find myself typing a response looking to help someone out then thinking, I cant, I dont know the full story, and I delete it all!

The is no substitute to a proper sit down meeting to do a full fact find, I dont know any broker that charges for an initial meeting so theres no cost but time.

ACG

You can still help without saying where to go.

The OP now knows there are potentially better deals available, they have the knowledge now to decide whether they use a broker, look themselves or leave it as is.