This week questions on wooden v PVC windows and what is 'loan to value'?
Wooden v PVC windows
Our house is a 1960s four-bed semi. We are thinking of replacing the original steel windows with double-glazing. We have discovered that wooden double-glazing costs almost twice as much as PVC and are trying to decide whether it is worth the extra money. What are the arguments in favour of wooden double-glazing and PVC (including resale value)?
The first thing to say is that you are right to think about replacing your single glazed windows. It has been estimated that a single-glazed house loses about 20 per cent of its heat in winter through windows and cracks around doors, so you are currently paying for a lot of hot air to go out into your garden. Glass is a poor insulator - letting heat out and noise in - and as your house is a 1960s semi-d, I imagine it has at least one large picture window, so presumably you know all about heat loss. Living in an estate, you are probably in a position to look at what other homeowners have done and you can see how your house would look with new windows, so you have a head start there.
Broadly speaking, wooden windows look good and are produced in an environmentally sustainable way. You can also paint them in any colour you like. The downside is that they need maintenance - regular painting or varnishing. Your alternative is uPVC (unplasticised polyvinyl chloride) windows - I've spelled out what uPVC stands for so you can see that the manufacture of these type of windows is an intensive industrial process not considered to promote environmental sustainability. You are also limited in terms of colours and finishes. It's difficult to say in relation to resale value; if your house was 1860s instead of 1960s, I'd have no hesitation to say don't even think about uPVC for all sorts of aesthetic reasons but also because buyers of period homes hate them.
However, uPVC windows in newer houses have their fans who particularly appreciate the low maintenance. The appearance of any house matters to buyers and, as wooden windows simply look better, they will make your house more appealing. If the cost of replacing all the windows with wood isn't working out, would you consider getting wooden double glazed to the front and uPVC to the back? If you do go down the plastic route, don't go for any faux leading, pretend Elizabethan or stained glass effects and whatever you do don't replace your front door with a plastic one - it's a turn-off for most prospective buyers.
What is 'loan to value'?
We had a brief consultation with a mortgage broker who mentioned LTV a couple of times and then explained that it stands for "loan-to-value". The trouble is that he never explained what LTV is?
Loan-to-value ratio is the percentage of the current market value of your house that you owe on your mortgage. The Irish Financial Services Regulatory Authority spells it out in its guide to mortgages with the following example: if your house is worth €250,000 and your outstanding mortgage is €100,000 then your loan-to-value (LTV) ratio is 40 per cent (divide €100,000 by €250,000 and multiply by 100). Anything to do with money is laden with jargon and before you make any decision about remortgaging or choosing a lender, you should familiarise yourself with it. Presumably you went to a mortgage broker hoping that he would make the process easy for you, and most do. Perhaps you should shop around for another broker and next time, ask every single time you don't understand something; the majority of brokers will be happy to answer all your questions.
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Unfortunately, it is not possible to respond to all questions. The above is a representative sample of queries received. This column is a readers' service and is not intended to replace professional advice. No individual correspondence will be entered into.
