LTV mortgage rates

dinnyirwin

ted1 wrote: »

Oh no KBC are happy to take my buisness they just didn't offer to cover the transfer fees.

my bad. I thought you were asking your current bank to shift you onto another ltv product.

dcollins

Has anyone else had success getting this rate change with their own lender? It seems much more likely if you're moving lender like to KBC's switcher mortgage. It could really make a big difference for many people if it were possible once they went below 80% but I got two different answers from two different managers in Ulsterbank, one saying you can get the move, one saying no.

Cheers,
Dan

TheDriver

Another question: Lets say I buy a house for 300k and get a mortgage for 160. Then the valuation comes in at 330k. Which do they base their % figure on, the selling price or the valuation price??

marathonic

TheDriver wrote: »

Which do they base their % figure on, the selling price or the valuation price??

They base it on the lowest of the two!

cmssjone

dcollins wrote: »

Has anyone else had success getting this rate change with their own lender? It seems much more likely if you're moving lender like to KBC's switcher mortgage. It could really make a big difference for many people if it were possible once they went below 80% but I got two different answers from two different managers in Ulsterbank, one saying you can get the move, one saying no.

Cheers,
Dan

I was chatting to a friend who works in the bank and he suggested that you may have some leverage if you have remortgage approval lined up from another bank. He said that it would not be in the bank's interest to lose a customer, especially if they have a long term mortgage with the bank. If the consumer decides to remortgage and move bank then the cost to them will be € 1 - 1.5k which should include a lower interest rate for the duration of the mortgage. They will gain back this fee easily and more throughout the remaining term. It will cost the bank significantly more than it will cost you if you switch.

Heisenberg1

sona_sasta wrote: »

I did this myself on an AIB mortgage in November last year. I was on the LTV Variable >80% rate and moved to the LTV Variable > 50%< =80% rate.

I just phoned the bank and asked to move rate as what I had paid off put us below 80% LTV based on the valuation when the mortgage was issued. They asked me to submit a new valuation from a valuer along with putting the request in writing.

There were no fees apart from the valuer.

That's funny I'm with AIB I phoned them yesterday and asked could I be put on a better LTV rate as my LTV was now under 50%. No was the answer you can only do this if you are on the SVR which they do not offer anymore. :mad:

Endotoxin

cmssjone wrote: »

Hi all,

Just a quick query.....If you obtain a mortgage with a LTV rate of >=80 but <=90 then you pay a higher %age rate than someone with an LTV value <80. If you start in the 80 -90% bracket and then move into the <= 80% bracket, are you entitled to the more favourable rate or are you stuck on your initial rate for the entire period of the mortgage?

Thanks for any replies.

Yeah I'm paying 3.99% on a 60% LTV.KBC offer the best rates for good LTV ratios.

The_Conductor

Heisenberg1 wrote: »

That's funny I'm with AIB I phoned them yesterday and asked could I be put on a better LTV rate as my LTV was now under 50%. No was the answer you can only do this if you are on the SVR which they do not offer anymore. :mad:

They most certainly have not discontinued SVR products.
Ring again- sounds like whoever you were talking to was trying to fob you off.

timetogo

Endotoxin wrote: »

Yeah I'm paying 3.99% on a 60% LTV.KBC offer the best rates for good LTV ratios.

I'm on their 4.59% rate. They advertise the lower rates as new business only. I asked them about reducing my rate. Still waiting on a reply.
Was thinking of switching to Ulster Bank. Would save me about €100 a month.

Heisenberg1

The_Conductor wrote: »

They most certainly have not discontinued SVR products.
Ring again- sounds like whoever you were talking to was trying to fob you off.

According to the AIB website the SVR is discontinued for owner occupiers.

http://www.aib.ie/personal/mortgages/New-Mortgage-Interest-Rates

The_Conductor

Heisenberg1 wrote: »

According to the AIB website the SVR is discontinued for owner occupiers.

http://www.aib.ie/personal/mortgages/New-Mortgage-Interest-Rates

For new customers.
Pre-existing customers with SVRs no change.

Apparently it was decided in the June 2009 meeting (aka its been this way for 5 years)- the idea is to try to encourage new customers purchasing PPRs to have the best LTV ratio possible- whereas previously, on the SVR- there was no active incentive to repay the loan.

SVRs continue to be issued for BTL loans and business loans.

KCross

There have been lots of separate posts asking about whether it is possible to change your LTV rate with your bank and some conflicting answers.

I was in the >80% LTV bracket and wanted to move to the lower bracket.

I asked my Bank a few months ago and was given an immediate… "No you cant, its in the T&C's"
This response is expected to be honest as every mortgage will have a reducing LTV ratio as you pay it off (assuming the house isnt going down in value for some reason) and so every mortgage would become less and less profitable for the bank if they automatically allowed you to move down through the brackets hence the reason the T&C's say you cant.

However, I wrote back with a valuation supporting my request but also stated I had approval from a competitor to move my mortgage and hence it was upto the Bank to keep me as a customer or let me go.

So, you are not automatically entitled to change to a lower LTV rate but you are entitled to move to another lender. If they believe you are going to move it is a simple business decision for them to give you the lower rate. The bank can overrule their own T&C!


It is effectively a game of poker between you and the bank and who is the better bluffer or if you are actually willing to move to another lender and have approval from them, then you have an unbeatable hand.

They chose to keep me as a customer and duly moved me to the lower rate. No cost incurred other than the cost of the valuation which was €180 inc Vat. The €180 I thought was a bit steep and I should have shopped around, so my bad on that, but I saved about that on the first repayment anyway so I'm happy.

I also note another recent thread on boards from BOI where they seem ameniable to changing LTV rates also.
boards.ie/ttfthread/2057318721/

Hope that helps to clear up the question for some…. just play some poker with your bank!

Heisenberg1

KCross wrote: »

There have been lots of separate posts asking about whether it is possible to change your LTV rate with your bank and some conflicting answers.

I was in the >80% LTV bracket and wanted to move to the lower bracket.

I asked my Bank a few months ago and was given an immediate… "No you cant, its in the T&C's"
This response is expected to be honest as every mortgage will have a reducing LTV ratio as you pay it off (assuming the house isnt going down in value for some reason) and so every mortgage would become less and less profitable for the bank if they automatically allowed you to move down through the brackets hence the reason the T&C's say you cant.

However, I wrote back with a valuation supporting my request but also stated I had approval from a competitor to move my mortgage and hence it was upto the Bank to keep me as a customer or let me go.

So, you are not automatically entitled to change to a lower LTV rate but you are entitled to move to another lender. If they believe you are going to move it is a simple business decision for them to give you the lower rate. The bank can overrule their own T&C!


It is effectively a game of poker between you and the bank and who is the better bluffer or if you are actually willing to move to another lender and have approval from them, then you have an unbeatable hand.

They chose to keep me as a customer and duly moved me to the lower rate. No cost incurred other than the cost of the valuation which was €180 inc Vat. The €180 I thought was a bit steep and I should have shopped around, so my bad on that, but I saved about that on the first repayment anyway so I'm happy.

I also note another recent thread on boards from BOI where they seem ameniable to changing LTV rates also.
boards.ie/ttfthread/2057318721/

Hope that helps to clear up the question for some…. just play some poker with your bank!

I'll try this approach and I'll report back thanks.

gillamandango

I have to sign today and am very confused about what rate to choose..I attach the schedule, house is 360k with a 330k mortgage..any advise on what to choose?

dcollins

gillamandango wrote: »

I have to sign today and am very confused about what rate to choose..I attach the schedule, house is 360k with a 330k mortgage..any advise on what to choose?

Hi,

I will not assume anything about the future market and rates because NOONE knows that. So all you can do is the best with the information given.

The worst value is the one year fixed. it rolls off onto a much worse rate.
the longer you fix for the higher the fixed rate but these are very competitive anyway. the 2,3,5 fixed and roll off onto % based variables. you will only know the best choice from those after 2,3,5 years pass and you see the variable rate then.

My advice is to choose from the 2 or three year fixed as long as you get confirmation that it rolls off to the new business rate of variable based on ltv. if they cannot confirm this to you in writing. then the best value by a million miles is the new business current account variable rate.

Basically as long as you avoid the SVR standard variable rate you are winning. 5 years would guarantee you a good low rate with basically fixed payments for a long time. this is stability. but you lose out of the current trend of lower interest rates continues.

Hope this helps. I work in a somewhat finance job and am a recent purchaser myself.

dcollins

gillamandango, i called them now and actaully they roll you off onto a 4.1 or so % rate after. I'd be taking the variable with discount if i was you.

But you will not get approval for 330 on a 360 purchase as that is a mortgage of 92%. kbc only do up to 90. ebs may approve you, and their rate is 4.2