Low LTV rates Nationwide

daveaspy

This seems a bit odd but I guess they can do whatever they like...

My mortgage is in two parts a large chunk that has another couple of years on a very low rate, and a smaller one that has a LTV ~7% (although the LTV of both parts combined is ~50%). This smaller one has just come to the end and I've moved to a tracker for the time being at 5.99% (BR + 0.74 -> so moving to 5.74% soon). I can move off this without penalty so was just giving myself a few months to see how things moved.

Looking at the options with Nationwide, I've noticed a difference in the tracker offering at 15% LTV

LTV > 15%

2Fix 4.92

2Trk 5.39 (BR+0.14)

3Fix 4.74

LTV < 15%

2Fix 4.92

2Trk 6.14 (BR+0.89)

3Fix 4.74

Why such a big difference in the tracker? I thought rates usually got better as the LTV went down? It does feel like they should use the overall LTV of all mortgage accounts when offering rates but seems not to be the case

ACG

Its not 15% LTV, its 85% LTV (the 15% is the deposit/equity).

daveaspy

ACG said:

Its not 15% LTV, its 85% LTV (the 15% is the deposit/equity).

no it really is 15% LTV - my small loan is ~32k on a property valued ~450k (so ~7% LTV), I found the above figures by playing with the mortgage rate calculator with higher LTV and the change in the tracker happens at 15%

Jemma01

I've just taken out a tracker with HSBC the rate now is 5.19% and my LTV is 35%. Maybe you should try them as well, they both have the same terms, and you can choose which bank you want the mortgage to go to.
HSBC's rate for me was lower than nationwide. Nationwide's rate was 5.54%, while HSBC was 5.44% before BoE's reduced rate.

ACG

They dont have a 15% LTV product. 
https://www.nationwide-intermediary.co.uk/products/product-finder

They have products up to 95% LTV, 90%, 85%, 80%, 75% and then it drops to 60%. You can see the tick boxes at the top of the page. 

daveaspy

Jemma01 said:

I've just taken out a tracker with HSBC the rate now is 5.19% and my LTV is 35%. Maybe you should try them as well, they both have the same terms, and you can choose which bank you want the mortgage to go to.
HSBC's rate for me was lower than nationwide. Nationwide's rate was 5.54%, while HSBC was 5.44% before BoE's reduced rate.

If my other larger part of the mortgage wasn't on 0.95% for another two years that might be an option 😂

daveaspy

ACG said:

They dont have a 15% LTV product. 
https://www.nationwide-intermediary.co.uk/products/product-finder

They have products up to 95% LTV, 90%, 85%, 80%, 75% and then it drops to 60%. You can see the tick boxes at the top of the page. 

Well that may well be the official list, but how do you explain the tracker price changing when I put in less than 15%? Is the web site broken??

ACG

Looking at the products:
The 6.14% (with a £999 fee) is a 90% product.
The 6.14% (without fees) is a 75% LTV product.
The 5.39% (with a £999 fee) is 60% LTV product. 

I think you are reading the LTVs the wrong way round maybe? 
A £15k mortgage on a house valued at £100k is 15% LTV (not 85%) as the loan represents 15% of the property value. 

I dont think any lenders offer products at 15% LTV. They normally stop at around 60-65%, some I think drop to 50%. But those are the lowest LTVs. 

Mutton_Geoff

ACG said:

I dont think any lenders offer products at 15% LTV. They normally stop at around 60-65%, some I think drop to 50%. But those are the lowest LTVs. 

I've got a 6% LTV mortgage. 5 year interest only fixed rate of 1.1% that is currently earning >5% interest in my savings accounts. I didn't reduce the loan to that LTV, that's what I signed up for when I moved house and wanted to take advantage of low rates rather than clear the whole balance on downsizing.

BarelySentientAI

Mutton_Geoff said:

ACG said:

I dont think any lenders offer products at 15% LTV. They normally stop at around 60-65%, some I think drop to 50%. But those are the lowest LTVs. 

I've got a 6% LTV mortgage. 5 year interest only fixed rate of 1.1% that is currently earning >5% interest in my savings accounts. I didn't reduce the loan to that LTV, that's what I signed up for when I moved house and wanted to take advantage of low rates rather than clear the whole balance on downsizing.

Lots of people have low LTV mortgages, because that's what happens as you pay off the balance.

What I've found, which matches what ACG says, is that the 'product range' stops at 50% so there isn't a different price for 40%, 30% etc like there is higher up.

Nobody is suggesting that you can't borrow only 6% of the purchase price, only that the rate will probably the same as if you had borrowed 50%.

Or are you actually saying that you got a specific mortgage price for a 6% mortgage that was a different rate particular for that LTV?

Mutton_Geoff

I guess any competitive/best rate would apply to any amount of LTV below 60% subject to the lenders minimum advance which I see on the Santander site is £6,000 so I guess if you owned a £3m house, you could get a 0.2% LTV mortgage from them if you wished.