Loan to Mortages Ratio

P

prech

Guest
Hi all, great site, hoping some of you knowledgeable people can help me here.

I heard this the other day and was just wondering if it true or not.

If the value of your home has gone up 40% (i think) from the time you took out your loan you can get .25 reduction in the interst rate you are paying. something to do with the value of your home going up to the ratio of the loan you have taken out.

Any info would be appreciated.
 
ring your bank and hassle them for a reduction , its called the LTV (value) not LTM ratio
 
It depends on your lender. Some (Ulster, NIB, Bank of Scotland, AIB, EBS) have lower rates for lower loan to value mortgages. Most are at 60%. It can also depend on the size of the mortgage.

Sarah

www.rea.ie
 
Most lenders are now doing tracker rates so you should ring yours and see what they offer you. You will probably have to get your house valued to show them that the value has increased and you qualify for a lower LTV tracker rate.
 
Rang EBS, my mortage is €245k, house value is €450k, get this because my loan is below €250k i am not entitled to it, if i was it would reduce to 3.8%. The real benifits are for people with €600k loans or more as the higher the loan the higher the %rate drop. talk about helping the investor/rich guy out while punishing the people who need it most.

They did sugest i take out a top up loan of 10k, but thats no real benifit as my repayments would go up slightly due the increase in loan, so no real benifit.

thanks for the info all.
 
prech said:
Rang EBS, my mortage is €245k, house value is €450k, get this because my loan is below €250k i am not entitled to it,
Click to expand...

3.8% is a bit high and they blew you off easily I see. Get BACK onto them and esscalate and make noise.

NIB Trackers can go as low as .79 over base rate (income multiples apply too) , base is 2.75% meaning the tracker would be 3.54% .

I would expect yours to be one over base MAX (3.75% ) unless your main income is €30-35k or something and at €245k as well. You are a lower risk to them .
 
Have you mentioned that you can avail of a better rate by switching your mortgage? Its amazing how banks can bend the rules slightly when they are faced with losing cutom.

I know a couple who were in a fixed rate paying 6.5% last year when rates were only 3 -3.5%, they approached the bank asking if they could come out of this but they were told that they would be penalised. They decided to switch, when the bank were contacted for redemption figures they offered the customers their choice of new business rates and said they would waive the penalty
 
In this case it would make sense to Switch to another provider, such as Bank of Scotland, who pay €1000 towards the legals, which should cover the cost.

Also, they refund your valuation fee on completion. (€150)

And, they give you a two-year discount tracker, set at ECB Rate +0.45%**

presently their 2-yr discount rate is 2.95%, which would go to 3.5% after the initial period.**

Check out their web-site, [broken link removed].

[broken link removed] is a screen capture of their calculator, showing €254k over 20years.**

**Please see Paraic's post below for update on BoSI rates. Thanx Paraic
 
Last edited by a moderator:
The and the mortgage rate tables published in the newspapers include LTV ratio qualification criteria information.
 
Bank of Scotlands website hasen't been updated with the last ECB rate rise of 0.25%.
The ECB rate is currently @2.75%, So BOS rates are
3.20% for 2 years discount
3.75% after discount.

Regards

[email protected]
 
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