Entitlement to a better LTV mortgage rate

Hi,

I drew down a mortgage of 190k a while ago from kbc which was 90%ltv at time of draw down (house value of 211k).

The mortgage was structured as a mixture of fixed and variable rate with approx 50k at variable and 140 at fixed rate.

I have since paid down approximately 40k of the capital on the variable element and so the outstanding balance is around 150k (10k at variable rate and 140k at fixed - approx).

My question is:

Now that I have reduced the LTV to (150/211 = 71%). Can I get a better rate with kbc? Or if I pay down some more to go below 70% can I get a better rate?

My understanding is that I can't because the vast majority of the outstanding balance is on a fixed rate and therefore I am locked in. Does this sound correct?

Do I have any scope to get a better deal?

Thanks!

Unfortunately you are locked in for whatever period the fixed rate is for. The bank are unlikely to facilitate a reduction on the fixed rate/term.

Thanks dermot that's what I thought.. I wonder then is it worth my while switching..do you know how I can do a quick calculation to see if it is worth my while? Although I suspect it probably isn't...

There will be a penalty for breaking out of the fixed rate and this will more than likely nullify any perceived savings that you could make. Have you the details on the term and the rate that you are fixed on.

jim said:

do you know how I can do a quick calculation to see if it is worth my while?

Click to expand...

Your fixed rate agreement should outline the penalty that applies for early breakage of the fixed rate.
Or just ask your lender.
Then you add in any costs associated with switching.
And weight those costs up against what you might save by switching.

jim said:

Thanks dermot that's what I thought.. I wonder then is it worth my while switching..do you know how I can do a quick calculation to see if it is worth my while? Although I suspect it probably isn't...

Click to expand...

There is bonkers.ie to compare mortgage offers. Then you need to add the cost to break the fixed rate and legal costs to switch. Many lenders offer money to switch to them also, perhaps the 2% cashback offer from BoI would cover all those costs.

Bonkers is a brilliant site for comparing utility bills and I use it regularly and am sure that it has saved me and others quite a bit over the years.
But I'm not so sure about their mortgage comparison support.
For one thing it seems to offer up LTV rates that may not apply to the value and loan amount entered (e.g. it's offering me BoI's 3.6% LTV fixed rate for value = €250K and loan = €200K which is 80% LTV!).