How much riskier is higher loan to value lending?

Here are the variable rates for new business



The big step seems to be between 80% and 90% ranging from an additional 0.2%(ptsb) to 0.4% (Ulster)

Interestingly the maximum gap between the lowest and the highest rate is only 0.6%.

I would have thought that low LTV mortgages would have earned bigger discounts.

Here are the tracker rates available from firstdirect in Northern Ireland




The gap between 85% and 90% is 0.8% which is higher than the maximum gap between 60% and 90% in the Republic.


Bank of Ireland in Northern Ireland

Up to 60% - 1.93% fixed for two years (It defaults to 4.49% after that, but smart borrowers renegotiate a new low price deal or switch lenders.)

Up to 90% 4.09% fixed for two years

So again, a loading of 2.16 % for a difference of 30%