-
Mine is November next year. Can you increase you LTV to the next bracket given the uplift in value of the place from the work you have done (kitchen) and market appreciation? That's my plan to help ease the spike
bobble-
It depends how badly the market sinks in the interim.
I'm at 69% LTV at the moment on an 18y mortgage for $483k remaining. At the moment the deal would be so-so... but if the market really truly crashes I should still avoid neg equity but the risk is that LTV would be moved back into the higher interest rate bucket (> 80% LTV).
I can probably argue the home improvements, and can throw my savings on the mortgage... but both will only slightly buffer the impact.
More likely, things will stabilise when this gov stop fucking around and when this Winter has passed and the impact of the Ukraine war is more known... hence, I'll probably choose to ride the variable for 6 months before fixing again. There's way too much risk priced into the current rates.
-
As well as @Velocio ‘s good advice you also need to watch lending multiples - as the % loan to value rises the amount lenders will give you against your earnings drops.
It can be a real issue for people who, say, borrowed 5x earnings at 80% LTV, house prices drop and they’re then borrowing at 90% LTV and no one will lend them 5x earnings any more so they have no option to stay on the standard variable rate.
It’s mental, but in 2009 there were plenty of folk who were paying variable rate who couldn’t remortgage on to a lower rate even with the same lender because they in theory couldn’t afford it, despite the fact it would bring payments down.
-
When I asked the bank about this unless you've increase the floor space then you wont move LTV necessarily.
Just depends what they say it worth at time of renewal
Velocio
Hefty
musa
Fixed price mortgage expires in March... Not looking forward to this. Guess I'm going to ride the variable for a chunk of the year to see if things improve.