LTV ratio decreasing before draw-down

T

tolkarovers

Registered User
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Hi Everyone,
Myself and my girlfriend put a deposit on an apartment last summer at a rate of 92% with AIB. The cost price was 330k.

Since then the cost prices have increased to 375k.

Is there a case to go back to the bank before drawing down to say that the LTV ratio of the loan is now lower and if we are less of a risk we should get a better rate?

If anyone has done this I would appreciate some advice on how to approach the bank.

Thanks a mill,
Tolka
 
Your LTV ratio is now 81% (if my maths is correct) - I am not aware of any lender that gives lower rates for such a high LTV - I think the rates only start changing around an LTV of 70% or 75% - you should check out the available rates if you can - however, it can't do any harm by asking
 
Although the price of other houses in the development may have increased the price you are paying for yours presumably hasn't so your LTV remains the same. The mortgage is based on the purchase price or valuation, whichever is the lower.

Sarah

www.rea.ie

P.S. AIB only offer lower rates to sub 60% anyway! :)
 
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