Halifax - high LTV switch mortgage

nicholbb

Bit confused with quoted LTV rate. Will need to call up but wondered about reasons they may give I'll want to counter, or where I got my sums wrong. An issue as it's borderline for rates offered.

Purchased 6 months ago, ported mortgage so don't remember any quoted LTV. Have 3 sub accounts one ended fixed rate and want to fix again. Online switch showed LTV = 75.94% but I think should be 73.99% (£6k difference).

Valuation and purchase price was £325,000 and mortgage is currently £240,474.99

I did overpay £15k extra in December if that impacts somehow. No other debts. London so prices are up. Other accounts total £191k with ERC of 3%

Any ideas?

Edit: More confusion. Offered rate was 2.69%. same as 60-75% LTV for £0-£100k mortgage or 75-85% LTV for £100-250k mortgages... could fit in both descriptions.. Ideally would be £100k+ mortgage under 75% LTV to lower rate by 0.3%

Xyzzy

Halifax use an automated valuation for the purpose of mortgage reviews, it's most likely that they think your house is only worth about £316,665

nicholbb

Thank you. That is logical if annoying.

Paying extra 3k (2.5 after next payment) to get down, saves £24 each month but 1/4 off emergency cash... have a decision but doesn't seem worth it atm

minimike2

More annoyingly is where they have some kind of exorbitant rate for anything over 95%. There are lenders which offer product switch rates at very good rates for anything with an LTV over 75%. Halifax like to take advantage of those still trapped from the price decreases post crash by increasing their >95% switch rates despite the big decrease in wholesale costs.

Making up those low margins from competition on new lending.

nicholbb

Offer LTV is 75.77% and yes the valuation used is lower than purchased price.

Halifax seems to be a "Computer says x" bank, which I like as simple to understand. What chance do I have to argue? Will call anyway below would be points.

Valuation was <gets tinfoil hat> just enough to push me above 75%. Identical place few doors down being sold for 20% more than I paid
Others have sold for more as well (identical layouts)
I've done £40k of work (from derelict to fully renovated)

Fully aware that borrowing not a right, and will have to look at moving if don't like it.

Edit:£20 a month, so could overpay that rather than paying ERC.