Switching from Variable to LTV

jack_pearse

Hi
We have a varibale mortgage with AIB, which has just gone up again today by 0.5%:mad:

My question is can we switch to an LTV rate from a variable rate?
I reckon our house is just worth about the remaing balance of our mortgage.

Also if this is possible how is the value of the house assessed, do we need to organise this ourselves or do AIB come and value it for us?

Thanks

coylemj

You're fooling yourself if you think that moving from a 'one size fits all' rate to a rate based on LTV will reduce your repayments because if you renegotiate your loan based on your current situation, by your own admission you will be borrowing 100% of (what you think is) the value of the house so you will get the worst possible rate and that's if they even agree to renegotiate your mortgage.

According to AIB's website, the standard variable rate is 3.5% and the LTV >80% rate 3.74% so if you switched to an LTV rate you would be paying roughly one quarter of a per cent more.

The only LTV rate that's less than the standard variable rate is the <50% LTV rate which is 3.34% so it's not in your interests to switch until your house is worth more than double the outstanding loan.

http://www.aib.ie/personal/mortgages/New-Mortgage-Interest-Rates