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Getting A Better Ltv Mortgage Deal


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#1 motch

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Posted 26 April 2012 - 05:58 PM

I bought a repo a year or so ago. Had a mortgage with about 15% deposit. Basically bought the place for about a third of what they sold for in 2006
Most originally sold new for 200k-250k

When it's time to re-mortage can I get a higher valuation on the flat to get a better LTV? ie have plenty of equity and get the best rate/deals. cheers

#2 katchytitle

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Posted 26 April 2012 - 06:39 PM

As long as the bank approved surveyor values your property higher than the amount you paid for it.

I'd get 3 quotes from local estate agents that are reputable and use that as evidence.

I bought a repo a year or so ago. Had a mortgage with about 15% deposit. Basically bought the place for about a third of what they sold for in 2006
Most originally sold new for 200k-250k

When it's time to re-mortage can I get a higher valuation on the flat to get a better LTV? ie have plenty of equity and get the best rate/deals. cheers



#3 Fatmanfilms

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Posted 26 April 2012 - 07:17 PM

As long as the bank approved surveyor values your property higher than the amount you paid for it.

I'd get 3 quotes from local estate agents that are reputable and use that as evidence.


Quotes from agents are not a mortgage valuation, which could easily be WAY lower.

#4 eastlondonb00m

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Posted 27 April 2012 - 09:14 AM

I have done something very similar to this recently.

Purchased for 250k in July 2011 on a 90pc mortgage fixed for 3 year (on a crap rate).

overpaid it by 10pc since then.

got 3 agents round to value it up - 'you'll geg 290-300k all day long mate'

remortgage it with a new lender - suggest valuation of 270k.

he comes round and signs it off at 265k.

hey presto I change my 90pc mortgage (at 6pc) into a 75pc mortgage (at 3 pc) within 12 months (remortgage goes through in the summer).

I've got to pay an ERC on the current mortgage of 3.9k but that more than offsets the mortgage interest I'll save and the extra equity I am gaining through the remortgage more than covers this.

jobs a good un.

#5 eastlondonb00m

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Posted 27 April 2012 - 09:48 AM

where are all the bears? I cant see them?!

my bit of east london is B00MING

#6 Rozza

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Posted 27 April 2012 - 10:35 AM

I have done something very similar to this recently.

Purchased for 250k in July 2011 on a 90pc mortgage fixed for 3 year (on a crap rate).

overpaid it by 10pc since then.

got 3 agents round to value it up - 'you'll geg 290-300k all day long mate'

remortgage it with a new lender - suggest valuation of 270k.

he comes round and signs it off at 265k.

hey presto I change my 90pc mortgage (at 6pc) into a 75pc mortgage (at 3 pc) within 12 months (remortgage goes through in the summer).

I've got to pay an ERC on the current mortgage of 3.9k but that more than offsets the mortgage interest I'll save and the extra equity I am gaining through the remortgage more than covers this.

jobs a good un.


Not saying it cant happen, but the timeline you have presented would make it extremely unlikely this is true and also since july 2011 interest rates on mortgages have risen so how have you managed to go from a 90% crap rate to a 75% good rate, when to be honest the 75% rates available are fairly crap?

#7 eastlondonb00m

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Posted 27 April 2012 - 10:40 AM

you'll just have to accept my word on it I'm afraid.

I knew the flat was a good deal when I purchased it (it wasnt a repo).

I'm not sure how 3pc fixed for 3 years (with 500 quid of fees) is a crap rate though? The flat would rent (and the one nextdoor is a BTL) at 325 quid a week.

6pc is a crap rate but that was all we could get with a 10pc deposit at the time. Still, the risk paid off.

#8 8 year itch

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Posted 27 April 2012 - 11:16 AM

you'll just have to accept my word on it I'm afraid.

I knew the flat was a good deal when I purchased it (it wasnt a repo).

I'm not sure how 3pc fixed for 3 years (with 500 quid of fees) is a crap rate though? The flat would rent (and the one nextdoor is a BTL) at 325 quid a week.

6pc is a crap rate but that was all we could get with a 10pc deposit at the time. Still, the risk paid off.

Marvelloso. I suggest you go out and buy 10 more.

There is no ladder.

JY


No need to sell up, the next phase of the economics cycle is going to be very positive for anyone that owns property.

All I'm sayings is, don't listen to the property bears people, they are wrong.


#9 Rozza

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Posted 27 April 2012 - 11:50 AM

I'm not sure how 3pc fixed for 3 years (with 500 quid of fees) is a crap rate though? The flat would rent (and the one nextdoor is a BTL) at 325 quid a week.


Can you please tell us where you can get 3pc fix on a 75% LTV with 500 fees as i havent seen anything like that available at the moment

Also, are you not worried about what could happen to rates in the next 3 years?

#10 Mayalabeille

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Posted 27 April 2012 - 04:05 PM

This is something I also wondered about. I bought a property 6 months ago so far from re mortgaging yet but I have already started my over payment (as much as I can each month but it is not much)
I bought the property for 15% less than what it was bought for 6 month earlier or 22% less than what the previous asking price (10 month before I bought) was.

I know that the houses in the street that where sold over the last 2 years went for 20 to 25% more than what I paid mine.

Don't have any intention to sell it, I love it and it is a great home. But I was wondering if when come the remortgage time in 2 and half year, I could get a new valuation and see if my equity has increase aiming for better LVT mortgage.

From what I have read on this thread it could be possible, as long as the price of my property does not collapse tomorrow?

#11 eastlondonb00m

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Posted 27 April 2012 - 04:23 PM

Can you please tell us where you can get 3pc fix on a 75% LTV with 500 fees as i havent seen anything like that available at the moment

Also, are you not worried about what could happen to rates in the next 3 years?


the remortgage is with the yorkshire building society one of their fee assisted mortgages - I managed to get in there 2 months ago before they jacked both the rates up and the fees as well.

I'm not worried at all about what happens in the next 3 years. rates will not be going anywhere soon and when they do go up it might be to 1pc - might be a bit more, but you aint going to be seeing a 5pc base rate for some considerable time imo.

Imo there will be no house price crash in London.
.

#12 motch

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Posted 28 April 2012 - 11:24 AM

Cheers for the replies. I'll have to re-mortgage in about 6 months or so, will be about 2 years from when I bought the flat.
What will the agents/banks base the value on? My purchase price or the prices of the other flats now (or when purchased 2006).
I'm sure most of the others must have 100k plus mortgages on basically the same flats as they were virtually all bought new in 2006 at about 3 times my price. My mortgage will be circa 60k.
Service charges a bit steep though :o




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