Paying off extra on mortgage and moving to lower LTV

J

jim

Registered User
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i am paying off extra on my mortgage at present. When I drew down it was 90%ltv and now it's approaching 80%ltv. I asked kbc if I can get a reduced interest rate when I fall into a lower ltv bracket and they said no and that I stay on the interest rate I got when I drew down.

Do I have any options here with regard to gettin a better interest rate as I pay off the mortgage and fall into lower ltv brackets?

Thanks
Jim
 
If KBC do not have an options for you then you might have to consider switching. What are you paying now and how does it compare to what you would get at another bank with 80% LTV.
 
Hi

I'm not keen on switching as I have only just drawn down a few months ago and have a current a/c with them and also I think there are legal fees and possibly other fees associated with switching.

Eventually though as the ltv falls and a much better deal arises elsewhere I will go for it.

I am surprised though that kbc would just let me leave without any effort to appease me and reduce the rate but from speaking to them that's would happen - they don't negotiate apparently.

Incidentally I am in general very happy with their service etc.
 
Hi jim

You will have to move, for your own sake and for the sake of other borrowers.

It's only when people start leaving the banks like KBC who fleece their existing customers, that KBC will start competing properly.

Brendan
 
From looking at the rates elsewhere it's not worth my while to switch plus there's solicitor costs involved although some banks may cover those fees.

Kbc seem to have competitive rates already so to switch to a bank that is less competitive although on a lower ltv it kind of cancels out the advantage.

Kbc just told me that if I were to be on their lower ltv rate now as a result of my overpayments then I would save about €11 per month in interest..
 
jim said:
Kbc just told me that if I were to be on their lower ltv rate now as a result of my overpayments then I would save about €11 per month in interest..
Click to expand...

Do you want to give us the figures and let us check that. It does not sound right unless it's a very small mortgage.
Am I right in saying that you drop from a rate of 4.3% to 3.9%?

If your mortgage is €100,000 , the saving would be 0.4% or €400 a year or €33 a month.
If your mortgage is €33,000, then €11 per month would be about right.

Brendan
 
Thanks Brendan. Here's the detail.

Initial amount drawn down was 193.5k
Value of house was 215k
Current balance is 172k

Interest rate was structured:
145k@ 3.7% fixed for 3 yrs
[email protected]% variable

My repayment per month is currently around 850.

Let me know if you need other info...

Thanks,
Jim
 
The majority of your mortgage is on a fixed rate? When does that 3 year period expire? I don't see much point in you taking any action until the fixed rate period is up.
 
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