AIB LTV Mortgage - change interest rate

MuffinsDa

We bought a house using a mortgage from AIB over 2 years ago. The LTV at the time was just over 80% (83%).
We started with a fixed portion and a variable portion to our mortgage, and shortly after fixed the variable one for 2 years too. So in effect, we currently have a fixed rate and part of our mortgage comes off fixed in a couple of months and the rest in about 6-7 months.

The question is, with the repayments made in the last 2.5 years, the nominal remaining capital is less than 80% when compared to original purchase price.

Does anyone have any experience of putting this argument forward to AIB to have them allow a 50%-80% LTV rate (which is currently 3.04%) as opposed to > 80% rate (which is 3.24%) or will they dismiss it straight away.

We had a mortgage with Ulsterbank and we did the same about 5 years ago, they didn't argue with it all, just asked for revaluation of the house and reduced the rate straight away. But then, 5 years ago it was a different world.

roro2

Slim chance I'd say, but no harm in requesting it!

They will almost definitely look for a valuation report to show a LTV of less than 80%. I say "almost" because they have been known to make mistakes in there so you can always hope to slip through the net - and therefore no harm in trying!

chris85

Slim chance but worth a try. One thing to see is has the value of the property lost any value which would bring the LTV. You bought two years ago and has been a drop in prices since then.