LTV (<80%) Vs Standard Variable

shank

Registered User
Messages
17
Hi all,
we're about to come off our fixed rate mortgage and AIB has given us a few options in terms of rates. The 2 most interesting options to us are standard variable rate of 4.4% or LTV rate (> 50% & < 80%) of 4.29%.

Traditionally are LTV rates for (> 50% & < 80%) always less than variable rate and the best option to go for? Long term, what's the best option for us and would it be safer to stick with the higher standard variable rate?

Thanks
Shane
 
Hi Shank,

In my opinion the LTV one is always better, you get a better rate because you have more equity in your house so you are less of a risk to the bank.

Check some of the other banks mortgage rates, or somewhere you can compare them and you will see that the LTV's are always lower that the standard variable. The better your LTV the better rate you get.

I'm only a homeowner like yourself but I've never seen an LTV of (> 50% & < 80%) be higher than the standard rate.

Regards,

MB05
 
Thanks MB05. Yeah, I definitely see that current LTV rates are less than variable rates so was just more curious about how this was long term. Thanks for the response.
 
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