Who lends the most!!

weddingringman

I’m currently with the TSB and finally sub 60% LTV.

Although we plan on moving house shortly, I plan to fix with a lender in the knowledge that the additional borrowing we may need in the near future is comfortably less that the TSB are currently offering. We may only need another 50k but the TSB are offering us about 120k.

That said, are their any lenders would tend to be more liberal that others with their lending? I play to fix for 5 years so I just wanted to make sure I don’t get caught out when I come to move and need extra lending.

Should I just do a 2 year fix to stay safe and mitigate larger exit fees? 

csgohan4

no lender is going to liberal now with the current situation. Best to get a broker to max your lender potential

weddingringman

Go to a broker to assess who lends the most currently before perhaps fixing with them for 5 years? 

ACG

There is no definitive answer to your question. 
It really does depend on your circumstances. Lenders treat debt/kids differently, some lenders will also lend more if you fix for 5 years than if you did for 2 years. 

You need to go on to lenders affordability calculators and key in your details or as suggested speak to a broker and they can do it for you. You need to be careful though, affordability calculations are subject to change and you may find a lender is quite flexible today but tighten up down the line if things change. 

If you plan on moving within 12 months, I would be reluctant to tie you into to a deal, especially a 5 year deal. 

weddingringman

We’ve been looking at complete wrecks of houses. So the rationale was that by tying in our existing deal now, we carry that sub 60% LTV rate to the next house. Meaning only the additional borrowing is at the poor 75-85% LTV rate.

I felt that because the TSB were offering us way more than we needed, we had enough head room to commit to them and get the lending further down the line.

Maybe a 2 year fix is the best port of call. The uplift in repayment from going onto TSBs variable rate outweighs any potential exit fees associated with a 2 year fix should there be a significant change of circumstances that meant we needed to change lender when we looked to move.

ACG

It is a risky strategy for the small amounts you will be saving. 

What happens if the surveyor down values or offers a nil valuation or if the property or even you no longer fit criteria? All potential risks especially with the potential for mass redundancies over the next 6 months or so.