LTV and recalculating mortgage

I

illingworth22

Registered User
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I purchased a house a few years back for 188k and I took out a mortgage of 140k, the house value had gone up, I would estimate 280 to 300k and the mortgage has gone down to just under 120k.

Can I use this (assuming the valuations are corroborated by approved valuations) information to try to switch mortgage providers or negotiate a better deal on my current provider?
 
To switch, yes. The other is trickier as generally mortgages use the first LTV otherwise we would all just renegotiate after 10 years. A threat to switch may do the job though. What is your current lender and SVR rate ?
 
Current lender is BOI and as per usual I have only got interested in this kind of stuff now I am getting closer to the big Retirement day! I am not sure what SVR means? I am on a 4.5% mortgage which is due to finish in 2033 when I am 70, ideally i'd like to switch and keep the same payments in order to reduce the term.
 
SVR is Standard Variable Rate. If you can lower the SVR they have you on, you'd be paying extra off the capital every month, once you keep the same payments up.

Try having a word with them anyways, I see the rate for an LTV of <60% is 3.9%. You could switch and do much better than this.
 
SVR = Standard Variable Rate

You could also tell BOI that you intend to switch and they may offer you a better rate.
 
You have one problem and that is the fact that you are near retirement. You may only get a loan till 2028 which means you need to pay a higher monthly cost than now but will finish sooner. If you borrow 120k at 3.2% (AIB) over 12 years (till 2028), your repayments at the moment will be €1004 a month. Assuming all things equal you are currently paying around €850 (just putting the figures you mention into Karl's calculator 120k outstanding) but you will be paying this for an extra five years till 2033.
 
elcato said:
You have one problem and that is the fact that you are near retirement. You may only get a loan till 2028 which means you need to pay a higher monthly cost than now but will finish sooner. If you borrow 120k at 3.2% (AIB) over 12 years (till 2028), your repayments at the moment will be €1004 a month. Assuming all things equal you are currently paying around €850 (just putting the figures you mention into Karl's calculator 120k outstanding) but you will be paying this for an extra five years till 2033.
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I don't mind paying a higher monthly in order to get the loan down by 7 years!
 
Just to be clear, the loan is down by 5 years not seven. Sounds like you need to move pronto so as BOI are the highest out there for rates at the moment anyway. By my calculations above you will pay an extra 2k for 12 years = 24k on the move option but you will save about 55k by not having to pay and extra 5 years. These of course are just rough pointers and don't take into account fluctuating rates in the period but you get my drift.
 
Apologies yes down by 5 years! I just contacted AIB and asked what I need to do, it sounds like a full repurchase again, I need to submit pay slips and all the usual stuff. But 5 years off the current term and a slightly highr payment seems worth it!
 
illingworth22 said:
I just contacted AIB and asked what I need to do, it sounds like a full repurchase again, I need to submit pay slips and all the usual stuff.
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That is exactly it unfortunately but they give you a sweetener of 2k I believe to more than cover legal costs. Try to get the same solicitor you used before and negotiate the fee.
 
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