If I borrow at 90% LTV, can I switch to a lower LTV rate later if the LTV falls?

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Boggerboy

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Hi all, just after going sale agreed on property and also in the middle of getting mortgage approval from AIB, BoI, Ulster Bank and also hoping to go to EBS and KBC.

My query is in relation to LTV, I am going to be taking out a 90% mortgage from either of the above but during meeting for application I asked whether in say 5 years time that is the LTV of the property was 75% could I move onto the lower rate or would i have to stay on the higher rate i.e. stay on the higher rate for duration of mortgage.
Both Ulster Bank and BoI stated that I could change the LTV of the mortgage and all that would be required would be a new valuation.
AIB however couldn't confirm that this would be the case and the Mortgage Advisor had heard it been done but also it been rejected (obviously didn't give specific info. to me)

Has anyone done this before with AIB?

Thanks in advance

(p.s. I know that this can be done on variable rate and not fixed)
 
Boggerboy said:
Hi all, just after going sale agreed on property and also in the middle of getting mortgage approval from AIB, BoI, Ulster Bank and also hoping to go to EBS and KBC.

My query is in relation to LTV, I am going to be taking out a 90% mortgage from either of the above but during meeting for application I asked whether in say 5 years time that is the LTV of the property was 75% could I move onto the lower rate or would i have to stay on the higher rate i.e. stay on the higher rate for duration of mortgage.
Both Ulster Bank and BoI stated that I could change the LTV of the mortgage and all that would be required would be a new valuation.
AIB however couldn't confirm that this would be the case and the Mortgage Advisor had heard it been done but also it been rejected (obviously didn't give specific info. to me)

Has anyone done this before with AIB?

Thanks in advance

(p.s. I know that this can be done on variable rate and not fixed)
Click to expand...
I fixed mine at 3.5 in August 15. July, this year, i got letter saying my fixed year was coming to an end and giving me an option of choosing ltv bands. In choosing an ltv band lowet than previous i had to have house revalued. This i completed at a cost of 180. I chose ltv of 50 percent, previously on 80. 3 weeks later i received letter saying was approved. 2 days later i received letter saying after reviewing account i couldnt go from a higher to lower ltv. Was fuming. Currently contemplating switching to ebs and back to aib under the ltv. Play these thieves at their own game
 
Only Ulster Bank allows borrowers to move to a lower rate band if their LTV comes down.

I don't believe Bank of Ireland and I would not trust them. But they are very expensive anyway, so you should not be dealing with them.

The best loan is EBS who will give you 2% cash back without any conditions. While they won't allow you to move the lower LTV rate when your LTV falls, you can switch to another lender without penalty.

Brendan
 
celticbhoy32 said:
I fixed mine at 3.5 in August 15. July, this year, i got letter saying my fixed year was coming to an end and giving me an option of choosing ltv bands. In choosing an ltv band lowet than previous i had to have house revalued. This i completed at a cost of 180. I chose ltv of 50 percent, previously on 80. 3 weeks later i received letter saying was approved. 2 days later i received letter saying after reviewing account i couldnt go from a higher to lower ltv. Was fuming. Currently contemplating switching to ebs and back to aib under the ltv. Play these thieves at their own game
Click to expand...

I presume you are with AIB currently? Thanks for the response, this is exactly what i was looking for
I know switching is an option but is it worth it to get lower LTV after all fees are paid, presumably solicitors fees which could be around 2K
On a side note surely it would be worth talking to your solicitor about getting the letter approving lower LTV, surely this is the bases of a contract, i.e. offer and acceptance!! (don't quote me I am defo not a solicitor)
 
Boggerboy said:
I presume you are with AIB currently? Thanks for the response, this is exactly what i was looking for
I know switching is an option but is it worth it to get lower LTV after all fees are paid, presumably solicitors fees which could be around 2K
On a side note surely it would be worth talking to your solicitor about getting the letter approving lower LTV, surely this is the bases of a contract, i.e. offer and acceptance!! (don't quote me I am defo not a solicitor)
Click to expand...
Yeah with aib. To be honest it wasnt/isnt financially motivated. The difference is only 7 euro a month extra. Think i will go ahead and switch though out of stubborness:) solicitors fees etc should be no where near 2k i should make money by doing so tbh
 
Brendan Burgess said:
Only Ulster Bank allows borrowers to move to a lower rate band if their LTV comes down.

I don't believe Bank of Ireland and I would not trust them. But they are very expensive anyway, so you should not be dealing with them.

The best loan is EBS who will give you 2% cash back without any conditions. While they won't allow you to move the lower LTV rate when your LTV falls, you can switch to another lender without penalty.

Brendan
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Thanks for response Brendan, yes it was UB who confirmed they do it but also BoI
Was talking to BoI today and asked them this preciously again and they said yes no issues at all, all you have to do is get a valuation report and send it in, I was still skeptical and asked if this was in the terms & conditions of the mortgage and it was confirmed it was, i got approval from them in principal and they are sending info out so will wait and see.
You are also correct they are the most expensive out there at the minute, there variable is ridiculous and there fixed is about 0.05% higher that everyone else
Have contacted EBS and am getting approval with them also

Do you know is there much fees to switching?
 
Boggerboy said:
Hi all, just after going sale agreed on property and also in the middle of getting mortgage approval from AIB, BoI, Ulster Bank and also hoping to go to EBS and KBC.

My query is in relation to LTV, I am going to be taking out a 90% mortgage from either of the above but during meeting for application I asked whether in say 5 years time that is the LTV of the property was 75% could I move onto the lower rate or would i have to stay on the higher rate i.e. stay on the higher rate for duration of mortgage.
Both Ulster Bank and BoI stated that I could change the LTV of the mortgage and all that would be required would be a new valuation.
AIB however couldn't confirm that this would be the case and the Mortgage Advisor had heard it been done but also it been rejected (obviously didn't give specific info. to me)

Has anyone done this before with AIB?

Thanks in advance

(p.s. I know that this can be done on variable rate and not fixed)
Click to expand...

AIB will only let you drop band once - so if you came down to the next band, >50% you wouldn't at a later date be able to move to <50%
 
Boggerboy said:
Was talking to BoI today and asked them this preciously again and they said yes no issues at all, all you have to do is get a valuation report and send it in, I was still skeptical and asked if this was in the terms & conditions of the mortgage and it was confirmed it was
Click to expand...

It's not unless they changed it recently. And they would advertise it if they did.

I really don't know why anyone would deal with Bank of Ireland who has a choice.

Brendan
 
notabene said:
AIB will only let you drop band once - so if you came down to the next band, >50% you wouldn't at a later date be able to move to <50%
Click to expand...

Is this something they consistently allow? I'm interested as I'd expect to cross a band threshold in the next year due to overpayments (barring decreases in house prices); hadn't realised they'd entertain the idea of changing band at all.
 
I spoke to them a few months ago about it - and above is what they said at that time, you can change band but only once over the lifetime of the mortgage.
 
Anyone out there with NIB LTV tracker mortgages, their T&c's clearly allow you to drop to a lower rate as your LTV drops.

There must be many who were on LTV's of 80% but being a good few years into their mortgage, and with property prices increasing might now be less than 60% or even 50%.
 
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