LTV question

emeraldemma

Our house is valued at £145000

The remaining balance on the mortgage is £110061.43

The current LTV is 75.9%

The interest rate is 4.74%

We should be paying £723.98 a month (repayment mortgage)

We are paying £725 a month.

I am aware we can get a cheaper deal if we are 75% LTV or below, how many more £725 monthly payments will it be til we are there?

Thanks

lee111s

75% ltv would be an outstanding capital of £108750.

Without knowing how much you borrowed over what term I can't workout what proportion of interest and capital you're paying per month. Ultimately you need to pay £1150 of capital off your mortgage to get into the 75% bracket.

If you have some savings or additional monies left at the end of the month you could overpay that amount in a one off payment. You'll only be able to get a cheaper deal if your current deal has ended otherwise you'll face penalties which often outweigh the savings you'll make.

emeraldemma

Thanks.

We can pay £65 to have our house revalued for theb mortgage to see if that can bring down the LTV. Zoopla does guess should be higher value.

Or wondering do I secure a new fix to start in 2 months or so when hopefully under the 75% LTV anyway??!

lee111s

If ypur current mortgage deal is up in two months then you either need to start looking and applying for a remortgage witha other lender or wait a month and speak to your current lender.

You'll not be under the 75% mark in two months time if only making the £725 payments as a high proportion of that will be interest so you'll maybe only paying £3-400 off the capital.

emeraldemma

Found this which was quite useful

https://www.easycalculation.com/mortgage/amortization.php

Looking like would have 4 more payments til at 75% LTV so probably will go for the revaluation.

Thrugelmir

emeraldemma wrote: »

Our house is valued at £145000

Who has valued it?

emeraldemma

Thank you that was what I was after

emeraldemma

That is the value from when we bought our house in 2009 on the survey.

mrginge

What makes you think its still valued at £145k five years later?

emeraldemma

The mortgage company is still holding that original valuation. I do think it is worth more today,but they won't take a different valuation without a proper revaluation. As we are so close to the 75% LTV I didn't know whether to pay for the revaluation. There is a risk with revaluation that value could be less,but I think that is unlikely.

getmore4less

lee111s wrote: »

75% ltv would be an outstanding capital of £108750.

Without knowing how much you borrowed over what term I can't workout what proportion of interest and capital you're paying per month. Ultimately you need to pay £1150 of capital off your mortgage to get into the 75% bracket.

FYI

There are 4 factors to a mortgage, amount borrowed, interests rate, payment and term, you only need three of those to work out the last one.


as we know the amount outstanding amount, the interst rate and the payment we can do the numbers.

http://www.whatsthecost.com/mortgage.aspx

set to interest only fill in the knowns and set the term to a large number
£110061.43
4.74%
£725 pm.

223 months total term left(18y 7m) last payment £149.

to get below £108750 (75%) 5 more payments(£144 overpayment to make it 4).

November 2014 £110,061.43
month...............payment...interest..capital...outstanding
December 2014..£725.00...£434.74 £290.26 £109,771.17
January 2015.....£725.00...£433.60 £291.40 £109,479.77
February 2015....£725.00...£432.45 £292.55 £109,187.21
March 2015........£725.00...£431.29 £293.71 £108,893.50
April 2015..........£725.00...£430.13 £294.87 £108,598.63