A.I.B. - Entitlement to L.T.V. rate...?

[Dinarius]

We have been informed by A.I.B. that when the newly announced rates come into effect in July, we will not be entitled to the lower L.T.V. rate of 3.1%, but will have to stay on the S.T.V. rate of 3.4%, as it will be then.

The person we spoke to said that we would only be entitled to the L.T.V. rate if we "...were coming off a fixed rate and would be given the choice of L.T.V. or S.T.V., or if we were new customers...." This sounds like total BS to me.

1. In credit terms, we are cast iron. Double income, no kids.

2. Our mortgage has 9.5 years to run. It is at about €170k. It is split into two; the larger part covering our home, the smaller part covering a buy to let. The combined value of the properties would be about €800k - €900k.

Surely, the L.T.V. should be simply a case of either you qualify (i.e. your mortgage is less than 50% of the property value) or you don't. In our case, our house alone would qualify us.

Or am I missing something?

Thanks.

D.

 

[newirishman]

We have been informed by A.I.B. that when the newly announced rates come into effect in July, we will not be entitled to the lower L.T.V. rate of 3.1%, but will have to stay on the S.T.V. rate of 3.4%, as it will be then.

The person we spoke to said that we would only be entitled to the L.T.V. rate if we "...were coming off a fixed rate and would be given the choice of L.T.V. or S.T.V., or if we were new customers...." This sounds like total BS to me.

1. In credit terms, we are cast iron. Double income, no kids.

2. Our mortgage has 9.5 years to run. It is at about €170k. It is split into two; the larger part covering our home, the smaller part covering a buy to let. The combined value of the properties would be about €800k - €900k.

Surely, the L.T.V. should be simply a case of either you qualify (i.e. your mortgage is less than 50% of the property value) or you don't. In our case, our house alone would qualify us.

Or am I missing something?

Thanks.

D.

LTV is usually not re-assessed during the lifetime of the mortgage, unless you switch. T
So if you LTV was say >60% when you took out the mortgage, than you will be paying the >60% LTV rate for the lifetime of your mortgage.

Give your LTV is now <50%, and you want to get a rate for LTV <50%, than you can either switch banks and get a better rate somewhere else based on the <50% LTV, or you negotiated with AIB and/or "threaten" to switch unless they give you a better rate. They are under no obligation to do so though.

There's a few threads here already.

 

[Dinarius]

Thanks for the reply.

I would say that our mortgage has always been sub 50% of the value of the house.

Can anyone beat A.I.B. on L.T.V.?

I would have no problem switching.

Thanks.

D.