Mortgage LTV rates

Ritchi

We bought our house a little over a year ago with a 90% mortgage, and the mortgage has the LTV rate that applies to that.

Our LTV rate has now changed due to a few other properties on the road selling for a lot more.

Can we get our mortgage interest rates reduced to reflect that. Or are we stuck at that rate unless we move mortgage provider?

Trish56

The rate that your mortgage completed at is the rate you pay your current lender however if you decide to remortgage down the road you can avail of a lower loan to value rate.

Ritchi

Trish56 wrote: »

The rate that your mortgage completed at is the rate you pay your current lender however if you decide to remortgage down the road you can avail of a lower loan to value rate.

Thanks.

And what are the implications of remortgaging? Would it be worth doing it to save .25% on the mortage?

D3PO

Ritchi wrote: »

Thanks.

And what are the implications of remortgaging? Would it be worth doing it to save .25% on the mortage?

Well there would be costs valuation fees etc so youd have to weigh up the costs versus the benefits and your current bank may not accept the remortgage application or your valuation and as such the LTV you suggest exists which means switching to another providor so legal fees, valuation fees etc.

Im not so sure that you will find it as easy to do as you may think tbh theres no harm in looking into it

subway

depends on the size of the mortgage, you will have legal fees etc to pay if you get a new mortgage

Ritchi

D3PO wrote: »

Well there would be costs valuation fees etc so youd have to weigh up the costs versus the benefits and your current bank may not accept the remortgage application or your valuation and as such the LTV you suggest exists which means switching to another providor so legal fees, valuation fees etc.

Im not so sure that you will find it as easy to do as you may think tbh theres no harm in looking into it

Ok, cool. I think I'll look into it a bit more before parting with any money.

subway

its free to apply with most banks anyway
although it is not a lot fun getting all the info together

D3PO

Ritchi wrote: »

Ok, cool. I think I'll look into it a bit more before parting with any money.

yeah certainly worth looking into.

Call me a cynic but I think it ultimately comes down to leverage.

Unless you can be sure you can switch mortgage providor to get a better LTV interest rate your kinda screwed.

There is no obligation for your lender to agree to allowing you remortgage so unless theres a genuine threat to them of losing your business Id imagine they will pawn you off.

Trish56

Ritchi wrote: »

Thanks.

And what are the implications of remortgaging? Would it be worth doing it to save .25% on the mortage?

It depends on your loan to value and your current interest rate. Currently you can remortgage with one lender who are offering 3.85% for loan to value of 60% or less or 3.99% for loan to value less than 80%. They have an offer at the moment where they will pay €1,000 towards legal and this should cover both your legal and valuation fees.

If you only purchased last year you might be better off to wait another 12 months so if your property increases in value and your mortgage balance will be lower you can avail of the best rate available.

Ray Palmer

I did this before and there was no extra costs at all. Didn't need to get a new mortgage either their was just a change to the rate. The valuation was just one from an estate agent and given freely by them.

I would have said all the above was true until I did it.

D3PO

Ray Palmer wrote: »

I did this before and there was no extra costs at all. Didn't need to get a new mortgage either their was just a change to the rate. The valuation was just one from an estate agent and given freely by them.

I would have said all the above was true until I did it.

Lets try to avoid the debate about this that ensued last time the question was asked. Where a load of people claimed a phone call demanding a better LTV rate was all that was needed.

This isnt 2004 anymore and we have to acknowledge how this kind of request is likely to be met by the banks now and also acknowledge that there is no obligation contractually for them just to change the rate because you ask.

Ritchi

Trish56 wrote: »

It depends on your loan to value and your current interest rate. Currently you can remortgage with one lender who are offering 3.85% for loan to value of 60% or less or 3.99% for loan to value less than 80%. They have an offer at the moment where they will pay €1,000 towards legal and this should cover both your legal and valuation fees.

If you only purchased last year you might be better off to wait another 12 months so if your property increases in value and your mortgage balance will be lower you can avail of the best rate available.

Thanks, if I compare my mortgage left to the house down the road, similar condition, we now have about a 56% LTV. I know it may not be as simple as that, but I think we're in a pretty good condition now.

Trish56

Ritchi wrote: »

Thanks, if I compare my mortgage left to the house down the road, similar condition, we now have about a 56% LTV. I know it may not be as simple as that, but I think we're in a pretty good condition now.

It may be worth your while Ritchi to get a valuer from the lenders panel to do a valuation on your property.... it will cost you €130/€150. <SNIP> If your LTV is less than 60% it may be worth switching especially if your legal and valuation fees are covered. Current offer is on only until end of April but may be extended. Offer also includes free home insurance for 1 year.