Can i appeal my ltv??

gelled

Registered User
Messages
27
Hi all,
took a mortgage in 2005 w/ ptsb.. Fixed for my first year.. In 2oo6 was automatically moved to standard variable.. After about a yearof rate rises i fixed in 2007 for 3 years..after this finished 2010 only offer was really high fixed or new product ltv..which was .5% above standard variable.. Bank told me they weren't offering standard variable anymore.. I fixed again last year for 5 years..
Original loan offer states when fixed period is over i will have option of moving to a variable rate..also they gie me illustrative table and state this table assumes loan will roll over to a standard variable.. Offer letter to fix in 2007 states nothing about what will happen after fixed period..

Can i appeal that in 2010 i should've been offered a standard rate?? Would never have fixed for 5 years if not for this ltv influencing my decision.. Thanks IN ADVANCE FOR ALL REPLIES AND SORRY FOR LONG POST..
 

Bronte

Frequent Poster
Messages
13,638
There must have been some kind of variable rate available in 2010. Do you mean they had different variable rates depending on the ltv (loan to value). Did they in writing tell you that there was no variable rate option available to you.

In order to go on our current fixed rate you must have filled out a form requestign that fixed rate and I would imagine when your previous fixed rate ended that the letter notifying you of that gave you your options including one that said you don't have to do anything and your loan will revert to 'standard variable rate'?
 

gelled

Registered User
Messages
27
they sent me that letter but it said if you don't do anything the interest rate will revert to ltv variable..which was .5% above standard variable...there was no mention of standard variable in this letter..can they just withdraw standard variable option from me?? and no they didn't write to me stating that thay're not offering standard variable
 

kaza

Frequent Poster
Messages
175
Hi,
I am a PTSB standard variable rate customer - until the end of 2011 they had two variable rates (as is my understanding) one for customers with a LTV < 80% and a higher one for customers with a LTV > 80%. I am the latter so my rate in 2010 was at 5.15% in Jan 2010 and 5.65% in July 2010. As far as I am aware the customers with a LTV < 80% where approximately .5% less than our rate. So what rate where you offered at the time?

So they did have SVR but the rate you got one of two rates based on your LTV. In 2011 my rate went as high as 6.15% but at the end of 2011 they decided the merge the two rates into one and the current SVR for existing customer is 5.19%.
 

Bronte

Frequent Poster
Messages
13,638
Gelled I think you might have a case here against the bank. They can't just decide your ltv out of thing air or introduce new rates for standard variable rates based on ltv for existing customers, this might be a case for the financial ombudsman, after you've exhausted the complaints procedure with your bank.
 

PayinDGerrys

Registered User
Messages
5
The sooner we can get away from PTSB the better!

We are in a similar situation:
I Purchased the house valued at 165,000 and paid 145,000 in 2003. Over the first few years I invested back into the house by renovating and extending I would say at worst the house might be still worth the same.

Came off a 3.79% 5 year fixed rate in December 2010,
when I had 127,827 outstanding (from the initial 165,000 with 127,827 outstanding thats LTV of <80%)
I was offered the following prior to coming off fixed in 2010:
LTV Variable 4.55%
2 yr fixed 5.25%
5yr fixed 5.75%
7yr fixed 6.10%
10yr fixed 6.10%
The small print specified I would default to the LTV Variable Rate if I didn't reply in writing, and since this was the option I was going for I didn't reply.

Since 2003 I have been married and we live in my house, I would love to change mortgage providers but because it will have to be a joint application and my wife is not currently working we just can't quite make it away from PTSB which I find VERY frustrating!

I am currently on 5.19% which I can gather is the SVR.
I contacted PTSB call centre yesterday to enquire why I was not on the lower LTV rate and I was told there is only one variable rate.

Now, my question is... at the time of coming off fixed I had an LTV of <80% and (more fool me) I assumed this was the better rate, until I started reading some of the posts here.
Is there definitely double standards within PTSB, is there grounds to appeal this LTV rate and perhaps claim a rebate for overpayment of interest since starting the LTV rate in Jan 2011?
 

kaza

Frequent Poster
Messages
175
PayinDGerrys so sorry I made a mistake typing my rates above for 2010 and I have amended them! I will double check my mortgage statements later when I get home to ensure they are correct

But it looks like I was the > 80% LTV (SVR) in 2010 of 5.15% in Jan 2010 and 5.65% in July 2010.

So if you where put on 4.55% LTV in Dec 2010 you where offered a much lower rate than I was on so you where on the < 80% LTV at the time.

They then removed the difference in the two rates and brought them inline at the end of 2011 so they are both now 5.19%

But again I will double check my mortgage statements later this evening at home and make sure I have those figures correct.

A few of us are involved in a campaign to try and get PTSB to lower their rates if you wish to join us??
 

PayinDGerrys

Registered User
Messages
5
gelled, I'm very sorry for hijacking your thread.

Kaza, thanks for clarifying the rates, it seems to make more sense now.
I would definitely be interested in supporting your campaign, the more people who put pressure on PTSB to reduce the SVR the better regardless of their circumstances.
Please PM me the details.
 

gelled

Registered User
Messages
27
hi.. i seem to have been ltv >80% and offered in 2010 same rates as gerry. However my problem is as bronte states where did this LTV valuation come from?? Thin air? I received no notification of standard variable being withdrawn And i definitely did not have a valution of my property conducted by PTSB.. DID ANYBODY? SO HOW DID THEY DECIDE MY LTV TO BE GREATER THAN 80%..WITH .5% ADDED ON..TIME TO EXHAUST THE BANK COMPLAINTS PROCEDURE.. I'LL LET ANYBODY WHO WANTS TO KNOW WHAT HAPPENS.. THANKS TO ALL FOR YOUR REPLYS
 

rameire

Frequent Poster
Messages
395
Gelled, the ltv is based on the valuation done before the property is bought, and the price paid.
 

Bronte

Frequent Poster
Messages
13,638
Gelled, the ltv is based on the valuation done before the property is bought, and the price paid.
My bank wrote to me in recent years (due to the down turn in the property market) when my fixed rate ended and offered different variable rates including two lower variable rates base on new LTV's. One was only eligible for these if one had a new valuation, in my case I didn't need a new valution as when I rang them up about it, the informed me it only applied to property purchased since 2006.

Banks are playing around with their products (standard variable rate, variable rate, discounted variable rate, 80% LTV variable rate etc) to get more money out of people.
 
G

gracehealy

Guest
Rameire,

Can you explain this further 'the ltv is based on the valuation done before the property is bought, and the price paid'.

So if a mortage was taken out in 2005 for 200,000 and in 2012 the amount left to pay on it is 170,000 are you saying that the LTV would be 170,000/200,000 = 0.85 or 85%?
And the fact that the house was worth 230,000 in 2005 and is only worth 150,000 now doesn't come into play at all in calculating LTV?

Thanks!
 

walshd

Registered User
Messages
39
Remaining Loan V's Today's Value... basically what the bank could get for it today... what they could get for it 5 years ago wouldn't matter...
 

rameire

Frequent Poster
Messages
395
Rameire,

Can you explain this further 'the ltv is based on the valuation done before the property is bought, and the price paid'.

So if a mortage was taken out in 2005 for 200,000 and in 2012 the amount left to pay on it is 170,000 are you saying that the LTV would be 170,000/200,000 = 0.85 or 85%?
And the fact that the house was worth 230,000 in 2005 and is only worth 150,000 now doesn't come into play at all in calculating LTV?

Thanks!
on the banks mortgage systems they would have the ltv based on the current balance over the original value of the property, so
170,000/230,000 = 74%LTV

if the bank wants to update the current ltv they will need to get a new valuation done on the property and it will be based on the current balance outstanding over the current value, 170,000/150,000 = 113%LTV

The original LTV was based on the original value over the total loan amount, 200,000/230,000 = 87%
 
Top