Mortgage warning, fixed, dignified loan to helpfulness ratio, counter?
My 2 yr fixed deal has come to an extremity 5.4% and alliance & leicester have put me on the standard variable rate of 4.99% which medium im only saving lb25 and as the underside rate is so low im hoping to get a good unknown deal or at least a lower standard irregular.
Here comes the problems, i was a first time buyer 2 years ago and borrowed 95% of the house value, near my repayment mortgage i think hardly any have been paid rotten and now looking for mortgages it is so difficult to get a greater loan to value ratio with a wearing clothes interest rate.
Most lenders refuse to lend over 60%, some 75% and found a few at 85%.
So is it best to stay on my standard variable rate, or bring a loan and reduce my mortgage to 85% LTV ratio or try an offset mortgage.
I approaching the idea of the offset as i do similar to to save but having only just bought the house, my savings are minimal at the moment!
I have a polite credit rating and good income. Any advice would be appreciated.
Answers:
You are definately better staying next to your existing lender - and staying on their SVR.
If you took repayment just 2 years ago....it is entirely possible (even likely) that you are now surrounded by negative equity (e.g. >100% LTV)...and moving to another lender will prove v tricky.
5% is a good deal for your situation right in a minute...and that rate is unlikely to go up for at least the remainder of this year (given that Bank floor is unlikely to rise in that time).
You can always ask your existing ender if they enjoy any other deals for good existing borrowers though....never hurts to ask. Just dont take coned into paying a big application fee that can easily be added onto the loan. It'll cost you agency more in the future interest.
What ever you appendage up doing....PLEASE do not borrow to get an offset....when you do the maths ...it's not going to work out capably for you.
Good Luck Source(s): Its my living
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Here comes the problems, i was a first time buyer 2 years ago and borrowed 95% of the house value, near my repayment mortgage i think hardly any have been paid rotten and now looking for mortgages it is so difficult to get a greater loan to value ratio with a wearing clothes interest rate.
Most lenders refuse to lend over 60%, some 75% and found a few at 85%.
So is it best to stay on my standard variable rate, or bring a loan and reduce my mortgage to 85% LTV ratio or try an offset mortgage.
I approaching the idea of the offset as i do similar to to save but having only just bought the house, my savings are minimal at the moment!
I have a polite credit rating and good income. Any advice would be appreciated.
Answers:
You are definately better staying next to your existing lender - and staying on their SVR.
If you took repayment just 2 years ago....it is entirely possible (even likely) that you are now surrounded by negative equity (e.g. >100% LTV)...and moving to another lender will prove v tricky.
5% is a good deal for your situation right in a minute...and that rate is unlikely to go up for at least the remainder of this year (given that Bank floor is unlikely to rise in that time).
You can always ask your existing ender if they enjoy any other deals for good existing borrowers though....never hurts to ask. Just dont take coned into paying a big application fee that can easily be added onto the loan. It'll cost you agency more in the future interest.
What ever you appendage up doing....PLEASE do not borrow to get an offset....when you do the maths ...it's not going to work out capably for you.
Good Luck Source(s): Its my living
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