Advice please
Options
Lmnro88
Posts: 1 Newbie
Hi guys
This is my first post and I’m not tech savvy so please bare with me. I have looked through the forum but can’t find a post that helps me.
Me and my wife bought our new build (£200,000) in 2014 with a 10% deposit and also with help to buy which was 15%. We got a 5year fixed term at 3.99% with NatWest.
We have managed to save the 30k to pay the help to buy loan off in full and our last statement from what I remember of the top of my head said we owe somewhere around about 145k maybe less.
Now with Brexit near and people predicting economy and house prices to drop and with our fixed term coming to an end my question was, Is it better to try get a new term before or after brexit? Or will it not make any real difference to the term we can get if house prices do drop?
Sorry for the essay and any replies much appreciated
Thanks
This is my first post and I’m not tech savvy so please bare with me. I have looked through the forum but can’t find a post that helps me.
Me and my wife bought our new build (£200,000) in 2014 with a 10% deposit and also with help to buy which was 15%. We got a 5year fixed term at 3.99% with NatWest.
We have managed to save the 30k to pay the help to buy loan off in full and our last statement from what I remember of the top of my head said we owe somewhere around about 145k maybe less.
Now with Brexit near and people predicting economy and house prices to drop and with our fixed term coming to an end my question was, Is it better to try get a new term before or after brexit? Or will it not make any real difference to the term we can get if house prices do drop?
Sorry for the essay and any replies much appreciated
Thanks
0
Comments
-
I am no expert but I think the only difference a price drop will make is that it will put you in a different (higher) LTV band. You will still owe the same amount so there should be no other effects.Marriage is hard. Divorce is hard. Choose your hard.
Obesity is hard. Being fit is hard. Choose your hard.
Being in debt is hard. Being financially disciplined is hard. Choose your hard.
Communication is hard. Not communicating is hard. Choose your hard.
Life will never be easy. It will always be hard. But you can choose your hard.0 -
If the property value drops, the HTB loan you repay will drop as it's 15% of the property value at that time.
You could do a customer retention product to lock in the mortgage rate now (although pressure on rates is more likely to be downwards IMHO) or as soon as your current rate ends; then see if property values drop allowing you to exit HTB cheaper.
You'll need a RICS surveyor to value the property when you redeem, so it may be worth starting a relationship with a Chartered Surveyor sooner rather than later.
Either way, the two things (mortgage and HTB loan are separate) and can be addressed at different times.I am a mortgage broker. 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.0
This discussion has been closed.
Categories
- All Categories
- 343.4K Banking & Borrowing
- 250.2K Reduce Debt & Boost Income
- 449.8K Spending & Discounts
- 235.5K Work, Benefits & Business
- 608.5K Mortgages, Homes & Bills
- 173.2K Life & Family
- 248.1K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards