What Happens Mortgage Rate if value increases?

E

elgin

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Bought a home in 2002 for 420K, now have mortgage outstanding of 315K. Have a tracker mortgage from Ulster Bank, which is 1.05% above the ECB rate (This rate is for mortgage >60% of value).

I'm pretty sure the value has increased enough since 2002 so that now have a mortgage of <than 60% of the value & as such the rate should be 0.85% above the ECB rate.

Has anyone gone to the banks about this before? Do I need to get a valuation?
 
Contact your lender and ask them to put you on the lower rate if you think/know that the effective LTV has fallen into the next rate band. If they say no ask why not. If there are better deals for the same LTV elsewhere then see about switching - and tell them as this can concentrate the minds of financial institutions.
 
You'll probably need a valuation from an Ulster Bank panel valuer to confirm the LTV - check this with your local branch or customer service and to see who is closest to you (valuer wise!).

Sarah

www.rea.ie
 
I had the same issue. I just rang up Bank of Ireland and they adjusted it straightaway. The0y did not require a valuation or anything.

I would imagine if you bought for 420k in 2002 - it is worth at least 650k now and 315k is clearly less than 60% so there could not really be any dispute over the need to adjust the LTV ratio.
 
€100 + VAT generally for valuations, u may be able to ge t a drive by done should be cheaper(check with bank first if this is ok)
 
Hi all - very interesting topic. We completely renovated our house after purchase so although we only have it a year the LTV has changed substantially. I rang the lender IIB, and they said that if we got it valued ourselves and sent in a written valuation they would 'take a look at it'. Anyone else dealt with IIB on this matter?
 
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