Reduced Mortgage Rate

N

NC6000

Registered User
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25
Hi All,

I was listening to the business show on Newstalk on Sunday morning and they were discussing how people can be eligible for a reduced rate mortgage if the amount mortgaged is less than 60% of the market value of the property. Apparently this is because there is a lower risk to the lending institution.

Does anybody know anymore about this?
 
Yes - check the Financial Best Buys forum. Many lenders offer different rates for different LTV (Loan To Value) ratios (e.g. 80%+, 60%-80%, < 60% would be common bands with progressively lower rates). Where a borrower drops into a lower LTV rate band then it may pay to contact their lender to see about getting a discount. Or shop around and consider remortgaging to get a better deal.
 
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