Calculation Help

kevsmt5

Hi, we currently have a mortgage with Halifax and have 49860 remaining. We have 33years and 3 months remaining and current deal ends in December.

Looking on Halifax website and I can not renew into a longer fixed term (of which we want as want some stability whilst our first child is growing up)

I will also be looking around the market for other deals however I need help calculating the following.

Current outstanding 49860 on fixed rate of 4.69 current payment 244.00 a month

Offering new deal of 4.49 a month making payments 239

Current ltv according to Halifax is 85.58 % however they have 4 years fixed at 3.69 if ltv lower than 85%

Could anyone tell me based on the above when my ltv would fall below 85%. As obviously it's not far off .

I can't see interest rates changing until mid next year so I am hoping it will be below before then and if I fall off current fixed rate before then I would go on their current variable which is below 4% anyway.

I will obviously be keeping my options open and above is not set in stone just wanted some help calculating when I would fall below 85%

Thanks

amnblog

Can you not find £290 to pay off to bring the LTV to 85%?

libf

kevsmt5 wrote: »

Hi, we currently have a mortgage with Halifax and have 49860 remaining. We have 33years and 3 months remaining and current deal ends in December.

Looking on Halifax website and I can not renew into a longer fixed term (of which we want as want some stability whilst our first child is growing up)

I will also be looking around the market for other deals however I need help calculating the following.

Current outstanding 49860 on fixed rate of 4.69 current payment 244.00 a month

Offering new deal of 4.49 a month making payments 239

Current ltv according to Halifax is 85.58 % however they have 4 years fixed at 3.69 if ltv lower than 85%

Could anyone tell me based on the above when my ltv would fall below 85%. As obviously it's not far off .

I can't see interest rates changing until mid next year so I am hoping it will be below before then and if I fall off current fixed rate before then I would go on their current variable which is below 4% anyway.

I will obviously be keeping my options open and above is not set in stone just wanted some help calculating when I would fall below 85%

Thanks

Increasing the term is a full remortgage, not just a change of product, so would need to do a full application. (Also, can you increase the term without going over retirement age?)

Does the LTV of >85% take into account any increases in the properties value? Otherwise you can just overpay, as suggested by amnblog.

getmore4less

£49860 to get below 85% you need to get down to 0.85/0.8558 of that £496552 £338 difference(not £290).

current mortgage paying £244 @ 4.69% (34years 3months) will get there in April 2016(7payments)

to get there by Dec(3payments) overpay by £63pm

Edit : fix that number should be £49522 == £338 difference

uncreative

getmore4less wrote: »

£49860 to get below 85% you need to get down to 0.85/0.8558 of that £496552 £338 difference(not £290).

current mortgage paying £244 @ 4.69% (34years 3months) will get there in April 2016(7payments)

to get there by Dec(3payments) overpay by £63pm

Can we do the maths on this?

if X x 85.58% = £49,860, then
X = £49,860/85.58%, =>
X = £58,262 (which is a bit of a strange valuation number)

So X (being the value of the house) is probably £58,250 due to rounding.

At 84.99% the mortgage value needs to be (£58,250 x 84.99%) = £49,506.

Gap in the equity value is £49,860 - £49,506 = £354.

OP - you dont want to limbo in on the absolute boundary so should you not try and pay something like £360 now and then the next 3 capital elements of the mortgage payment will give you additional headroom. I am not sure how much capital is getting paid at the moment with 33yrs and 3 months left to go on the term, it will be mostly interest?

The big caveat here surely must be you need to monitor this closely then be prepared to make whatever payment you need to get under the 85% threshold prior to remortgage.