LTV in current market
Discussion
Scotal's perhaps a bit bored of my musings ( 
) but, IFAs realistically/honestly how much deposit do you actually need in current market to get decent rates?
what's the minimum deposit (with an example of interest rate)
what's best rate with the 'ideal' deposit?
what's best rate with 25% deposit (if different from above)
) but, IFAs realistically/honestly how much deposit do you actually need in current market to get decent rates?what's the minimum deposit (with an example of interest rate)
what's best rate with the 'ideal' deposit?
what's best rate with 25% deposit (if different from above)
briSk said:
Scotal's perhaps a bit bored of my musings ( ) but, IFAs realistically/honestly how much deposit do you actually need in current market to get decent rates?
what's the minimum deposit (with an example of interest rate)
what's best rate with the 'ideal' deposit?
what's best rate with 25% deposit (if different from above)
Moi bored? Never. (boring possibly, but we wont go there) ) but, IFAs realistically/honestly how much deposit do you actually need in current market to get decent rates?what's the minimum deposit (with an example of interest rate)
what's best rate with the 'ideal' deposit?
what's best rate with 25% deposit (if different from above)
Some rates are limited to 60% at mom. Lots available at 75%.
Rates are coming down, albeit slowly.
Define best rate, as 215 says, its all down to true cost. fees/vs rate/vs tie in. Fixed/floating even floating with an option to fix later, feel free to PM, I'll drop you some quotes back
well i don't really want to waste anyone's time.. i am thinking that if now is broadly as bad as it'll get then theoretically how much can i 'budget' for the next one.
if you've got time scotal i can pm how much equity/deposit i think i have got at the moment assuming we sell for what i think it might go for (sort of thing!).
if you've got time scotal i can pm how much equity/deposit i think i have got at the moment assuming we sell for what i think it might go for (sort of thing!).
oh and to be honest the next one would be a good 10 year hold prbably want to fix for at least some of that. looks like rates may come down H1 next year so... if we sell, the rent mid way between where we are now and where we want to be, get wife a new job there then move there... maybe next summer then fix might be lower...
http://www.pistonheads.com/gassing/topic.asp?h=0&a...
I was quite surprised what my current lender could/couldnt do
Basically 25% deposit
I was quite surprised what my current lender could/couldnt do
Basically 25% deposit
In terms of fixing... it's much more a dilemma as the NICE decade becomes more of a distant memory.
However, theoretically at the start of a recession, interest rates are set to stall growth to curb inflation. As the rates bite and inflation comes under control, rates are lowered to led growth pick up.
I think we are at the mid-point of the 'slowdown' stage. After Swervin Meryvn's assessment of the economy yesterday, the BoE are making very strong signals that they expect inflation to drop very quickly and will preempt any further slowdown with a reduction in interest rates. As most of the inflation is imported, it will drop out, core inflation (prices excluding energy and food) isn't that high. The danger they feel is the BoE could prolong any slowdown unless they act early.
Action is expected sometime toward end of this year.
You will need to keep your eye on the economy but most sentiment is for rates to fall in Q4 '08 / Q1 '09, fixing at the moment with the differential between bank lending rates and base rates so high at present I think it might be a mistake. A tracker might be a better option at the time being.
All IMHO of course.
However, theoretically at the start of a recession, interest rates are set to stall growth to curb inflation. As the rates bite and inflation comes under control, rates are lowered to led growth pick up.
I think we are at the mid-point of the 'slowdown' stage. After Swervin Meryvn's assessment of the economy yesterday, the BoE are making very strong signals that they expect inflation to drop very quickly and will preempt any further slowdown with a reduction in interest rates. As most of the inflation is imported, it will drop out, core inflation (prices excluding energy and food) isn't that high. The danger they feel is the BoE could prolong any slowdown unless they act early.
Action is expected sometime toward end of this year.
You will need to keep your eye on the economy but most sentiment is for rates to fall in Q4 '08 / Q1 '09, fixing at the moment with the differential between bank lending rates and base rates so high at present I think it might be a mistake. A tracker might be a better option at the time being.
All IMHO of course.
215cu said:
From experience, the best mortgage product are at 75% LTV, over that and you are looking at higher mortgage interest rates.
Also, look at the effectve APR, sometimes it's better to take the 0% arrangement fee and opt for the slightly higher rate.
If you have any method for informing pig sAlso, look at the effectve APR, sometimes it's better to take the 0% arrangement fee and opt for the slightly higher rate.
t thick people that the overall picture is what you need to look at, I'd be grateful of some suggestions, because I've given up!Davi said:
215cu said:
From experience, the best mortgage product are at 75% LTV, over that and you are looking at higher mortgage interest rates.
Also, look at the effectve APR, sometimes it's better to take the 0% arrangement fee and opt for the slightly higher rate.
If you have any method for informing pig sAlso, look at the effectve APR, sometimes it's better to take the 0% arrangement fee and opt for the slightly higher rate.
t thick people that the overall picture is what you need to look at, I'd be grateful of some suggestions, because I've given up!If it's the missus, how it works for me is to go right down to a £1.
£1 borrowed for the mortgage incurs 7.49p interest a year, then multiply that by the amount to borrow give the annual interest. It's simplistic I know and only works for fixed deals.
Two deals for example
1. 6.49% APR, no fee, fixed for 2 years.
2. 6.29% APR, £1500 fee, fixed for 2 years.
So for every pound, that's 6.49p or 6.29p annual interest.
Then look at the difference between the two rates over the period of the fixed term, Robert is your mother's brother.
Had the exact same dilemma last year with the wife. On the amount we borrowed, the 6.29% amount was better for us, however if the mortgage was for fixed for five, the 6.49% would have been better...
215cu said:
Davi said:
215cu said:
From experience, the best mortgage product are at 75% LTV, over that and you are looking at higher mortgage interest rates.
Also, look at the effectve APR, sometimes it's better to take the 0% arrangement fee and opt for the slightly higher rate.
If you have any method for informing pig sAlso, look at the effectve APR, sometimes it's better to take the 0% arrangement fee and opt for the slightly higher rate.
t thick people that the overall picture is what you need to look at, I'd be grateful of some suggestions, because I've given up!If it's the missus, how it works for me is to go right down to a £1.
£1 borrowed for the mortgage incurs 7.49p interest a year, then multiply that by the amount to borrow give the annual interest. It's simplistic I know and only works for fixed deals.
Two deals for example
1. 6.49% APR, no fee, fixed for 2 years.
2. 6.29% APR, £1500 fee, fixed for 2 years.
So for every pound, that's 6.49p or 6.29p annual interest.
Then look at the difference between the two rates over the period of the fixed term, Robert is your mother's brother.
Had the exact same dilemma last year with the wife. On the amount we borrowed, the 6.29% amount was better for us, however if the mortgage was for fixed for five, the 6.49% would have been better...
I actually had one client tell me a few days ago "I don't mind you charging me a fee, but I don't see why I should pay the lender such an extortionate arrangement fee as well, so we'll ignore their options - keep looking". This was despite having produced a schedule showing that even with the fee added and spread, it still worked out £100 a month cheaper
Today's muppet actually called the discussion to an end because I was trying to save him money by suggesting a piss low rate with a medium sized fee.
The best rates are had with min 75% LTV. That said, goodish deals not too far above average rates can be had still on anything up to 90% LTV I've noticed.
Mine is due up next November, and I'm seriously think that a tracker may be a better option than getting tied into a fixed, given what rates are currently on offer for those of us hovering around the 20% equity point.
Mine is due up next November, and I'm seriously think that a tracker may be a better option than getting tied into a fixed, given what rates are currently on offer for those of us hovering around the 20% equity point.
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