LTV Question

R

rkck15

Registered User
Messages
13
Hi,

Grateful for any advice on the following.

We took out a mortgage for €150k with the EBS in 2003 and have always been on a variable rate with them. During the last recession we were in arrears for a couple of of years but got back on track, came to an agreement with the EBS and now have approx €50k left on the mortgage and just under 7 years on the term.

A few houses of the same type as ours in the estate were sold for €160 - €170k in the last 12 months so although we haven't got ours valued yet I guess it will come in around that. Taking the €170k value and our balance that would mean our LTV is approx 30%. Would that mean we would likely be eligible to get a reduced interest rate based on the LTV. The current interest rate we are paying is 3.7% Could the EBS use the couple of years we were in arrears as a reason to deny us an interest rate decrease?

Pretty sickening to consider that based on inflation since 2003 our house which cost €150k (apparently that's roughly €180k today) is worth less now than what we paid for it but I guess that's the case for lots of people.

Any feedback appreciated!
 
cremeegg said:
Just shop around, if EBS does not offer a better deal, some other lender might.
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Thanks, not overly keen on switching to another lender if at all possible for a few reasons so I guess my question is do EBS pretty much have discretion over whether to offer me a lower rate or are there any cut and dried rules on this.
 
rkck15 said:
Could the EBS use the couple of years we were in arrears as a reason to deny us an interest rate decrease?
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No, well they couldn't use that as a reason for refusal but you need to switch to another lender probably to get a better rate. Might be worth a call to see if they improve that rate although I am not a customer of theirs so don't know.
 
rkck15 said:
Could the EBS use the couple of years we were in arrears as a reason to deny us an interest rate decrease?
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Doubt it but no harm asking them.

Would recommend switching to KBC, getting €3k cash back and an interest rate of less than 2.5%.
 
Forget about EBS LTV. They don't have competitive variable rates.

Their best variable LTV rate is 3.3%
All their fixed rates, regardless of LTV or term are 2.9%

Fix for 1 year if you're not comfortable fixing longer.
 
RedOnion said:
Forget about EBS LTV. They don't have competitive variable rates.

Their best variable LTV rate is 3.3%
All their fixed rates, regardless of LTV or term are 2.9%

Fix for 1 year if you're not comfortable fixing longer.
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Thanks, one of the reasons I'm not keen on a fixed rate is that I hope to be in a position to pay a lump sum on the mortgage in the next 12 months to leave the outstanding balance to under €30k and reevaluate from there. I guess for the moment I just want to ensure I'm not paying anymore than I have to on monthly repayments even if it only means a small reduction.
 
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