... if you are renegotiating your mortgage. Apologies if everyone knows this but I didn't and it has saved us money.
Our fixed rate ran out recently and we had to set up a new mortgage - when I phoned the bank about it I was offered some new rates which meant we would be paying an extra £100-150 per month (as interest rates have gone up).
I rang off in horror to discuss with DP - but when I phoned back, I got a different person and when I explained we wanted to pay less per month, she said if we had 50% or less Loan-to-Value, we could get a special rate. ie if the mortgage amount borrowed is half the house's value, or less - eg your house is worth £200K, but your mortgage is for £100K or less.
Now it was nowhere near 50% when we bought it a few years ago, but because house values have shot up, I was amazed to find that the house value is now more than twice our mortgage. And so we got a special rate that means we aren't paying any more per month, despite interest rate rises.
Didn't even have to get the house valued - they had software that worked it out. Bank is RBOS, but others probably have similar deals and it's worth asking about, especially as the first woman I spoke to kept quiet about it.
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Mortgage joy - astonishingly boring but might be useful...
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snowleopard · 14/09/2007 10:42
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