Nope, value has gone up from 170k to 190k.
Mortgage Interest Rates
- Thread starter Psycho Sonny
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Got rejected for Nationwide the first time I tried to apply unless I wanted to pay 4.5%.
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Are you self employed?
Earnings decreased?
Something isn't adding up here. It's extremely unusual for it to have increased when prices have stayed low for the past 4 years across the board with only slight increases and decreases bit of your house value has went up, you have made substantial overpayments and lowered LTV. Males zero sense.
Unless it's the fact that you have been rejected for a mortgage. That may explain things. You are seen as high risk.
I think it's best you speak with a broker for your own personal situation.
No not self employed, it may even be my mortgage advisor not getting me the best rates, i am in touch with someone else who is getting me some different offers.
Here's the offers from my current mortgage advisor:
Option1: 2 year fixed rate at 3.12%, £650.00 per month, £499 fee to get the product
Option 2: 2 Year fixed rate at 3.54%, £688 per month, £0.00 fee
Option 1: stay with Clydesdale bank and set up a new fixed rate they have 2 deals available
Deal 1: 5 Year Fixed rate at 3.46%, £681.00 per month £499 set up fee
Deal 2: 5 Year Fixed rate at 3.74%, £706.00 per month £0.00 set up fee.
Option 2: Swap to a new bank: This will involve a whole application needing to be done to the bank which will mean a broker fee of £150.00 will be payable when the new mortgage starts.
Deal 1: 5 Year Fixed rate at 3.35%, £676.40 per month £1499 set up fee
Deal 2: 5 Year Fixed rate at 3.39%, £677.96 per month £999 set up fee
Deal 3: 5 Year Fixed rate at 3.44% ££678.32 per month £0.00 set up fee
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I'd see what the other one comes back with.
I'd also give nationwide a call and see what they can do. I really like nationwide they come highly recommended from most folk.
Soldato
Have you checked your credit score on experian and credit karma etc? Them rejecting you is a bad sign.
Those headline rates are for higher than 85% LTV imo.
Yeah i'll wait and see what figures they come back with on Monday.
I've just checked credit karma and it's 600 out of 710.
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Is there anything dodgy on your bank statements?
Do you gamble a lot? Betting activity and stuff along those lines? Lots of cash withdrawals? Especially at weird times like late at night?
Basically anything not considered normal?
Soldato
Not to blow my own trumpet but I am 638/710 on Credit Karma and 999/999 on Experian.
Your score being lower might point to you being a higher risk, and not just due to higher LTV band.
Every time you apply for credit it can impact your score, and being declined for credit can definitely hurt. Having lots of CC debt and stuff doesn't help.
They've probably rejected you due to being a higher credit risk.
I've seen people on HUKD and stuff chain swapping bank accounts to get intro bonus cash payments, but I always think doing such things can cause drops in credit scores that cause headaches down the line.
Not really I don’t think, I eat a lot of takeaway so there’s like 20 just eat orders a month on my statement
No gambling etc and never take cash out, only ever use Apple Pay.
If my working out is correct, I bought the house for 173k, paid 5% deposit of £8650 and then in May it’ll have been 24 payments of £573 totalling £13800 roughly.
I’ve then made 16k in over payments across the 2 years totalling £660 a month.
So for the 2 years I’ve been here, I will have paid off 28k, adding on the estimated value increase of 20k, that puts me at roughly 15% LTV?
edit
No that’s not correct actually, I’ve made 12k in over payments which means I’m closer to 90% LTV than I thought.
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Mines is 654/710 and I'm just about to close a credit account I have to make it even better that I have running that I don't need.
Go onto your mortgage account. What's the outstanding amount?
Take that and plug that into a rates calculator with your home's current value.
E.g £150k outstanding on mortgage and home now valued at £190k it will tell you what your LTV is.
Soldato
You'd need to check your actual mortgage balance remaining with the bank. Some of your payments will be against interest rather than the balance owed.
After you know how much balance you have left, it's just estimated house value (being realistic) - outstanding balance left on mortgage to get your equity.
Check your credit karma thing in more detail it might say why your score is lower, or what you can do to improve it...
20 takeaways a month isn't crazy but I prefer to put that kind of thing on one credit card that I pay off in full each month to avoid my bank statement looking insane.
The outstanding balance is £155k so hardly anything off the mortgage and mainly just interest.
So balance owed of 155k, that’s 9k less over 2 years which means all my monthly mortgage payments were on interest and my over payments were taking the balance down.
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LTV is circa 81.6%
Try and pay off another 1.6% if you can before you remortgage.
That's 1.6% of £190k so roughly £3k using rough maths puts you into the next band with better rates then available to you.
Soldato
£155K / £173K is 89.6%. I reckon your mortgage is still being calculated at the the 90% LTV mark. In order to re-calculate at 15% your house would need to be worth more, around £184K.
If they aren't re-valuing it upwards based on the price index moving up, then you won't see that benefit on your rates.
Soldato
Disagree with your maths as per my above post. Feel free to prove me wrong but it's closer to 90% if no re-evaluation is done on house price.
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I based it on the £190k he said his home was now worth.
So yeah it depends on what the lender values it at. It's not without the realms of possibility though that it's worth £17k more after 2 years.