What is LTV?

[OnLooker]

I currently have a mortgage of €273k left. I bought the house 4 yrs ago for €316k. Its in an established estate. Houses in the estate were selling for over €500k at the height of the boom but have since stablished between €450 - €500k since the slow down.

I currently have the mortgage fixed at a pretty cheap rate (Fixed 2 years ago b4 all the increases) which runs out next April. I plan to remortgage when this term is up. What is LTV? I have seen people taking about LTV and how you can get cheaper interest rates as a result. Can anyone help?

Thanks in advance.

 

[ClubMan]

Re: Remortgage for Beginner

What is LTV?

Loan To Value ratio - the amount of the mortgage loan divided by the value of the house expressed as a percentage. For example a €400K mortgage on a house valued at €500K would be a LTV of 80%. Some lenders offer better rates for specific (usually lower) LTVs and/or mortgage amounts.

 

[OnLooker]

Re: Remortgage for Beginner

Loan To Value ratio - the amount of the mortgage loan divided by the value of the house expressed as a percentage. For example a €400K mortgage on a house valued at €500K would be a LTV of 80%. Some lenders offer better rates for specific (usually lower) LTVs and/or mortgage amounts.

Would it be advisable to switch to a LTV Mortgage when the fixed rate mortgage is up next year?

 

[ClubMan]

I don't understand what you mean by an LTV mortgage. I presume you mean a variable/tracker rate mortgage with some preferential rate for specific LTVs? Impossible to say without more details but, in general, I would tend towards a competitive/low margin variable/tracker rate instead of a fixed rate unless cashflow constraints meant that I needed to fix.

 

[Banking2006]

National Irish Bank appear to have a Loan To Value mortgage with a 0.5% margin on top of the ECB rate- this looks like about the lowest in the market. It varies depending on if you have a high or low LTV rating.