LTV change do I inform bank?

[brickhouse]

Hi,

We have our home 11yrs with 14 left, our original mortgage is variable and we have a 2nd tracker mortgage for an extension. Our origional mortgage is around 160K with the tracker 25K, homes on our estate without the extension are currently looking around the 250/260 mark.....
should we be looking to have our ltv rate reduced as we now have equity in the home?
We are with BOI

 

[so-crates]

Unless there is something in your mortgage contract stating the bank will put you on a lower rate if your LTV drops I doubt they will do so without some prompting!

At the moment by your figures your total LTV is 71% or 74%. I think the more tempting rate offers usually are at 60% LTV. However some banks are offering cheaper rates at 80% too.

I think you need to have a look around and see what other banks will offer you before approaching BOI, that way you will be able to gauge their response. I think you do need to be careful about the tracker mortgage. Since you are not talking about a single mortgage it may complicate matters a bit.