Low ltv or owing small amount of money - vague question!

Unicorn_cottage

Hi all
Sorry my question is very vague as I don't know exactly what I am asking but wondered what somebody needs to look out for when their mortgage becomes at the smaller end of the scale? I've heard people say they have not been able to remortgage when they owe a small amount so does this mean you are forced onto the SVR rate etc? Do deals not get any better once under a certain ltv percentage?
My current loan to value is 45%.
Thank you

MovingForwards

It's usually based on how much is outstanding as lenders have a minimum amount they will lend.

Unicorn_cottage

MovingForwards said:

It's usually based on how much is outstanding as lenders have a minimum amount they will lend.

@MovingForwards - do you know a ballpark figure just so I can get my head round it? Thanks for your comment

MovingForwards

@Unicorn_cottage mainly £25k, based on the criteria I read, there may  be some who do it lower. 

Hopefully the brokers will say the lowest figure they are aware of, but they won't be able to say which lender.

Unicorn_cottage

@MovingForwards - thanks for this I didn't realise the amount would be so high. I thought maybe £10k? I am thinking it must then be wise to time your remortgaging periods carefully as you don't want to end up on a SVR for £25k of the repayment period....?

MovingForwards

@Unicorn_cottage there may be lenders who do have £10k min mortgage loan criteria, I didn't see any but I also didn't check every single lender. Which is why I hoped a broker would pop along.

It's always best to plan your fixed periods, just to make sure it aligns with your overall aim of clearing the mortgage 🙂

dimbo61

You can borrow more and have an offset mortgage !
Say you only owe £20,000 on your home.
Apply for a £50,000 offset mortgage and put the extra £30,000 into the offset account.
You really want a fee free deal and be careful with the money in the offset account which is Not spending money !
Might be worth it if your going to be pay 4/5% on the svr.

Thrugelmir

When remaining with your existing lender that does not constitute a remortgage. At the end of each fixed term simply switch to the most appropriate product on offer from your existing offer. 

Unicorn_cottage

@Thrugelmir - I didn't stick with my existing lender as their rates were not competitive and I did not want to stick with a fixed rate. 

Unicorn_cottage

dimbo61 said:

You can borrow more and have an offset mortgage !
Say you only owe £20,000 on your home.
Apply for a £50,000 offset mortgage and put the extra £30,000 into the offset account.
You really want a fee free deal and be careful with the money in the offset account which is Not spending money !
Might be worth it if your going to be pay 4/5% on the svr.

@dimbo61 I am nowhere near the £25k owing mark yet but I like to read up on things so I know for the future I'll have a look into the offset option though. Thank you!

Thrugelmir

How much is it going to cost you to remortgage to a new lender? May well negate any benefit of a lower rate of interest given the low amount you owe.