LTV rates

B

Bobsparov

Registered User
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1
Folks,
Finding it hard to get a defintive answer on LTV rates. Is the LTV rate set in stone from the initial mortgage ratio or is there either an ongoing evaluation of the LTV to take into account capital being paid off. I.E. mortage starts off as 65% LTV but after a couple of years of paying off the mortgage you get to <60%. Is it possible to then get the cheaper mortgage rate or will you forever be locked into the orignal rate?
 
Locked in unless you re-mortgage. Some providers will switch you to the top SVR if you go to a fixed rate during the term too.
 
What about of you switch to an LTV rate, say after a fixed rate ends. Is the LTV calculated based on the ratio of the overall valuation / amount borrowed or the current valuation / amount of loan remaining?
 
boe, I don't work in the industry but my understanding is the LTV would be based on current values. It would be utterly illogical to base it on a value and a loan amount at a fixed point in time, that would mean it would never alter!
 
Most banks put you on to the top rate svr after a fixed rate ends. They don't revalue the property and let you drop down.
 
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