Very close to next level of LTV 25 October 2022 at 1:56PM in Mortgages & endowments 7 replies 324 views

Tatters26

If I’m at 81% LTV and looking for 5 year fixed, am I restricted to 85% LTV products? Is it as simple as if you're at 81%, you may as well be at 83% or 84% in terms of products offered.

Or will a lender use common sense and see that around 5/6 months into a 60 month deal, I’ll be at 80% and let me apply for those products?

[Deleted User]

Tatters26 said:

If I’m at 81% LTV and looking for 5 year fixed, am I restricted to 85% LTV products? Is it as simple as if you're at 81%, you may as well be at 83% or 84% in terms of products offered.

Or will a lender use common sense and see that around 5/6 months into a 60 month deal, I’ll be at 80% and let me apply for those products?

No there has to be clear cut offs, otherwise it would be a complete mess! 80% and under you are in that bracket. Anything 80.1 to 84.9% then yes you'd be in the 85% LTV products so it wouldn't make any difference between 81 & 84 as you say.

Tatters26

No there has to be clear cut offs, otherwise it would be a complete mess! 80% and under you are in that bracket. Anything 80.1 to 84.9% then yes you'd be in the 85% LTV products so it wouldn't make any difference between 81 & 84 as you say.

I thought this, might be worth doing a 2 year fixed them to get into that bracket and go again in a couple of years. I'll see if there's a huge difference.

Tatters26

If I'm so close to the next level, that is based on the house being worth what we paid. (It was on for £10,000 more) - what price do they go off for what the house is worth? Just thinking an extra £5000 or £10,000 on the valuation could swing it.

Sorry if that's a silly question, I was a first time buyer last year coming up to my first ever re-mortgage. 

K_S

Tatters26 said:

If I’m at 81% LTV and looking for 5 year fixed, am I restricted to 85% LTV products? Is it as simple as if you're at 81%, you may as well be at 83% or 84% in terms of products offered.

Or will a lender use common sense and see that around 5/6 months into a 60 month deal, I’ll be at 80% and let me apply for those products?

@tatters26 The former.

But it might not even matter. I had a purchase client a few days ago on the border of 80-85% LTV and with the 3 lenders I was looking at it made no difference to the 5yr fix rates available.

[Deleted User]

Tatters26 said:

No there has to be clear cut offs, otherwise it would be a complete mess! 80% and under you are in that bracket. Anything 80.1 to 84.9% then yes you'd be in the 85% LTV products so it wouldn't make any difference between 81 & 84 as you say.

I thought this, might be worth doing a 2 year fixed them to get into that bracket and go again in a couple of years. I'll see if there's a huge difference.

Always difficult weighing that up. When I was having a look the other day it seemed to be the gap between LTV rates wasn't as great as I thought it would be but it's always a gamble of long term security on payment vs LTV.

JMA74

The difference between ltv brackets is marginal at best at the moment. 

Looking at my sourcing system i see no difference in rates at 80 and 85% and maybe 0.2% lower at 75%.   Probably not worth worrying about to be honest. 

Tatters26

JMA74 said:

Looking at my sourcing system i see no difference in rates at 80 and 85% and maybe 0.2% lower at 75%.   Probably not worth worrying about to be honest. 

Okay thank you