Overpayments and LTV Help Understanding??!!

AdWolves123

Hello since getting a mortgage last year I have been overpaying 45 each month on 580. and my deposit was only 7% Im not complaining but how have I now got 16% equity in the property considering Ive put so little in??!!! I phoned my provider but the couldnt enlighten m on how this has happened?? Any advice much appreciated. Thanks

Mortgage 123500
Deposit 8500
mortgage 580
Overpayment 45
4.99% Rate
35years now 1 year in??

libf

Has the value of the property risen?

AdWolves123

It probably has but Ive not been sent anything making me aware of this...

betmunch

you don't get anything to say the property has changed in value.


How did you come up with the figure of 16% equity?


The figures used to work it out are not in your OP so I suspect you have done a different calculation

AdWolves123

Ive just phoned up chelsea BS as was initially just wanting to find out if my overpayment was taking me near to 90% LTV for renewal next may as on a 95% deal and want a better/cheaper monthly repayment and was told over the phone I was nearing 84.7...which seems alot to me so was wandering if anyone could shed light on how its jumped so much.

Many Thanks

betmunch

If they have told you then they have used a computer to estimate the value of the house. This should reflect local changes in house prices since you bought the place.


its the loan divided by the property value as a percentage.

AdWolves123

Ok thanks for your help.

getmore4less

house £132000 (deposit £8500)

£123500 mortgage ( 93.56%)

4.99% 35y, payment should be closer to £622 not £580 that would be closer to 45 years!

Are you sure it is not house £123500, £115000 mortgage that fits better.

Working on that £115k paying £625pm after one year £113200 LTV 91.66.

For 84% LTV the house would be £131600 a 6.6% rise in a year not that unreasonable

If you took some time to buy from offer that will be more than a year.