60% LTV threshold

PawelK

Hello.
I am currently overpaying my mortgage and by the term end of October 2022 I will be just within the LTV in subject which I believe is the last major threshold for reducing the interest rate when remortgaging. Or is there another one, e.g. at 50%? My details in a summary below.
Currently 2.14% 5yrs fixed, paying £720pcm with Nationwide. Overpaying £500pcm which according to the bank's forecast will take me below 60% LTV based on roughly the same value of my flat I purchased for £263k. Originally mortgage term 30yrs, at the moment 25yrs8m left.

Thank you.

NewLeaf1986

Given that you can fix at 0.99% APR on a 60% LTV I'd say that's the final threshold for you!

You can look forward to paying less than half the interest you currently are after next October. Great work

getmore4less

Most lenders the cut off is 60% there are a few that use 50% but their products are no better than the others.

Rough guess you started around 73%

amount	rate	payment	owing
£191,000.00	2.14%	£719.42	£167,033.82

Just paying the ~£720 get you 64%

Need to have paid off ~£10k extra to get to 60%
might be there with a little rise in value

Check when Nationwide will let you switch or secure a deal their 60% product switch is 1.24% £999 fee

PawelK

NewLeaf1986 said:

Given that you can fix at 0.99% APR on a 60% LTV I'd say that's the final threshold for you!

You can look forward to paying less than half the interest you currently are after next October. Great work

Thanks. Yes, that's the main reason I'm overpaying. Especially that in couple of years time I may start letting the flat out so the lower mortgage payments I will have, the more profit I could make out of it. The only decision I need to make is whether to carry on with the remaining term when remortgaging or reduce it down to, say 20 years. Potentially could even do 15.

PawelK

getmore4less said:

Most lenders the cut off is 60% there are a few that use 50% but their products are no better than the others.

Rough guess you started around 73%

amount	rate	payment	owing
£191,000.00	2.14%	£719.42	£167,033.82

Just paying the ~£720 get you 64%

Need to have paid off ~£10k extra to get to 60%
might be there with a little rise in value

Check when Nationwide will let you switch or secure a deal their 60% product switch is 1.24% £999 fee

You are pretty much spot on with my repayments and the mortgage taken. I am hoping the situation with the economy and BoE rates won't change much until then and I can secure such deal or even around 1%. Just thinking (apart from how much term to take when remortgaging comes) whether I should go again for 5yrs fixed or less.