Very close to next level of LTV

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?

Replies

  • 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.
  • Tatters26Tatters26 Forumite
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    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.
  • Tatters26Tatters26 Forumite
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    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_SK_S Forumite, Ambassador
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    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.

    I am a Mortgage Adviser - You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. 

    Please do not send PMs asking for one-to-one-advice, or representation.

  • 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.
  • JMA74JMA74 Forumite
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    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. 
    I am a Mortgage Adviser 
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Tatters26Tatters26 Forumite
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    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
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