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Mortgage Query

  • 12-05-2017 6:58am
    #1
    mirrorwall14
    Closed Accounts Posts: 6,751 ✭✭✭


    We have a mortgage and borrowed just under 90%. How does the rate changes for LTV work for a current mortgage? Like if the property in the area has gone up 50k average can we have the house revalued by the bank to get into a lower variable rate for a better LTV? Or are we tied into the original value LTV?


Comments

  • #2
    Trish56
    Registered Users, Registered Users 2 Posts: 1,256 ✭✭✭Trish56


    You're tied into the rate that you got approved at. Only way to avail of a better loan to value is by switching mortgage.


  • #3
    gogo
    Registered Users, Registered Users 2 Posts: 1,452 ✭✭✭gogo


    Hi, depends on the bank you are with, some banks will allow you to change your rate if your LTV has lowered, both AIB and BOI do.
    If you are on a variable rate you can fix in at any time, fixed rates are currently lower aross the board. If you are on a fixed rate, you will be penalised for breaking it, the penalty will be greater if you have recently fixed in, or lower if you are coming to the end if your fixed rate term. What you may save monthly on a lower rate can sometimes justify paying the penalty, as in you'd make the money back in a couple of months with a new lower rate. Go into your branch and talk to them, get them to explain rates to you, especially the pros and cons of fixing in, which I'd imagine you'd be doing with the way rates currently are.
    You'd also need to have a look at the value of your house to determine the value for a LTV. Have a look at the property price register to get an idea of what houses are selling for In your area. HTH


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