LTV & PDH - what do they mean?

[Tetragon]

I've had my mortgage fixed for 5 years and the term is about to end. I've got a letter from BOI mortgages asking me to choose from the above. My old fixed rate was 3.99%.

• What do LTV Rate PDH, (PDH) & All LTVs mean?

The cheapest is the 2 year fixed, with the variable costing €7 more.
The 10 year fixed is €30 more than the 2 year fixed (and €50 more than what I'm currently paying). All these figures are based on fortnightly repayments (easier for me to manage as I'm paid every fortnight).

• My second question - am I mad to consider fixing for 10 years? - It's an extra €100 per month ==> €1,200 a year ==> €12,000 over the 10 years. The payment would work out at roughly 40% of my take home pay (per fortnight).

 

[Brendan Burgess]

LTV Loan to Value ( e.g. loan of €100k on a house worth €200k is 50% LTV)
PDH Principal Dwelling Home (as distinct from an investment property)

It seems from that table, that the LTV does not matter. You are being quoted 4.5% whether the loan is 50% of the value of the property or 100% of the value of the property.

Bank of Ireland charges new customers 4.1% for loans of less than 50% Loan to Value.

My second question - am I mad to consider fixing for 10 years? - It's an extra €100 per month ==> €1,200 a year ==> €12,000 over the 10 years. The payment would work out at roughly 40% of my take home pay (per fortnight).


You should look at switching to KBC or AIB whose rates are much lower.

I don't think you should fix. It's being discussed in many other threads. Variable rate mortgages are way too high in Ireland and should come down from their current rates.

Brendan

 

[Tetragon]

KBC doesn't think it worth my while moving:

AIB seems to be for owner occupier only:

The mortgage is held on a holiday home. I think I'm as well off to stick with BOI for the present.