LTV for a split variable/fixed Mortgage

COR218

Just trying to work out interest rates for a split mortgage and I just want to confirm my thinking is correct. 
(I know the variable rates are probably better at the moment but I would be happier with a split.) 

Exapmle 1
100k mortgage on a house valued at 100k
100k Fixed mortgage  ->   LTV > 80%    


Exapmle 2 (Split)
100k mortgage on a house valued at 100k
60k Fixed mortgage      ->   LTV  (between 80% and 60% bracket)  
40k Variable Mortgage  ->   LTV < 50%

Zadkiel

As far as I'm aware LTV is LTV for the total amount borrowed, not the portion of the loan based on the total value. (this is how it was explained to me by my borrower so fingers crossed they didnt lie to me!)

So your LTV only changes based on how much your house is valued against the total amount borrowed.

if you've borrowed 80k and your house is valued at 100k
Your LTV is 80% for both types of mortgage.


z

Edit to clarify- i missed that it a mortgage of 100% initially.
If the bank has bands of different rates for LTV's usually they cap them at a >80% rate as you mentioned.
In this case both your Examples would be >80%

LTV for a split variable/fixed Mortgage
Just trying to work out interest rates for a split mortgage and I just want to confirm my thinking is correct.
(I know the variable rates are probably better at the moment but I would be happier with a split.)

Exapmle 1
100k mortgage on a house valued at 100k
100k Fixed mortgage -> LTV > 80%


Exapmle 2 (Split)
100k mortgage on a house valued at 100k
60k Fixed mortgage -> LTV >80%
40k Variable Mortgage -> LTV >80%

Lumen

The LTV is 100% in both cases.

Zadkiel

It could only be 100% if the loan was for the full value of the property. I don't think there's anyone offering 100% mortgages at present.

Lumen

Zadkiel wrote: »

It could only be 100% if the loan was for the full value of the property. I don't think there's anyone offering 100% mortgages at present.

There are banks offering substantially more than 100% under certain circumstances.

https://personalbanking.bankofireland.com/borrow/mortgages/articles/negative-equity/

Zadkiel

Lumen wrote: »

There are banks offering substantially more than 100% under certain circumstances.

https://personalbanking.bankofireland.com/borrow/mortgages/articles/negative-equity/

True sorry I was working on an assumption of a new first time mortgage not an application including negative equity carried forward.

COR218

Zadkiel wrote: »

It could only be 100% if the loan was for the full value of the property. I don't think there's anyone offering 100% mortgages at present.

i just picked round figures to keep it simple

Michael D Not Higgins

COR218 wrote: »

i just picked round figures to keep it simple

Nevertheless, you cannot split the mortgage into multiple parts to call it a lower LTV otherwise everyone would do that to take advantage of lower rates.