Borrowing over 75% - potential mistake

DanielACB

Hi,

I have an open mortgage application with Halifax via a MB.
Arrangement fee of £999.
Maximum available loan amount 75%

Initial calculation from MB was for 75% LTV (paying arrangement fee upfront).
I decided to build the arrangement fee into the Mortgage, therefore taking the LTV up to 75.43%. 

Is this likely to effect the decision? Do I need to raise this with the MB? Valuation was completed yesterday 

Many thanks

mortgagetakingages

No they will throw in fee despite it going over 75% 

DanielACB

Surely the LTV being over 75% doesnt match the rules of the product though?

se2020

Have you read all the rules?
It normally says that certain fees can be added above the original ltv figure. 

DanielACB

se2020 said:

Have you read all the rules?
It normally says that certain fees can be added above the original ltv figure. 

Any arrangement fee added to affordability calculator. Very worried about this situation now! 

grumiofoundation

If it does push you over the LTV band (believe it varies provider to provider) does this impact the interest rate on your mortgage? 

bradders1983

Barclays told me I couldnt do this as it would push me over 80% LTV. In the end we found a free product anyway.

Different bank, i know...
.

grumiofoundation

bradders1983 said:

Barclays told me I couldnt do this as it would push me over 80% LTV. In the end we found a free product anyway.

Different bank, i know...
.

We have also been told this, but in order to avoid paying the fees upfront, we just reduced the amount we wanted to borrow by an equal amount to the fee so as to keep within the same LTV band. 

[Deleted User]

My Santander BTL is 75% PLUS their fee on top. Its the way many do it. No issues