Mortgage LTV

Hi there,

If I get a mortgage for say 275K which represents 90% of the cost of the project (self build) at a tracker rate of 3.14%. The house will be worth more than it cost to build it
When the house is built the amount I owe represents 60% of the value of the property. The bank have a tracker rate of 2.99% for LTV of 60% or below. CAn I then go to this rate or am I tied to the one I started with


On the other side of the coin PTSB offer one tracker for amounts greater than 250K (3.10%) and another for less than 250K (3.4% I think). when my amount oweing falls below 250K I assume I dont switch to the higher rate

When your house is completed, you get a new valuation on the property. If the valuation is of an appropriate amount, you can ask your lender to apply the lower tracker rate to your loan. If they play silly buggers, threaten to move your mortgage. Ulster bank for example have a switcher mortgage for Ltv's of less than 60% which means it would cost you c€900 to switch.

If your LTV is lower by the time the sale closes then there is nothing stopping you approaching your lender and negotiating to get any lower rate that might otherwise apply. You may need to get another valuation and you may need to haggle.

If the second case I doubt that they will automatically switch you to the higher rate when the amount outstanding falls below the relevant level. Best to check the detailed terms & conditions of the loan agreement to be sure though.

Munsterdude if I had to move to ulster wouldnt they pay that 900 euro fee for me??????

Clubman , I have already asked would I revert to the higher rate when I drop below 250K with PTSB, he confirmed I wouldnt. I dont think they have neck enough to chance that.

I dint ask any of the people I met about switching to a 60% ltv or less rate if the situation arose. That could mean a hefty safing if I were to drop .2 or .3%. Id imagine they would refuse but with som threats would switch. What ya reckon?????????????

munsterman25 said:

Munsterdude if I had to move to ulster wouldnt they pay that 900 euro fee for me??????

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Yup! - via a thing called title insurance (gist of it is, they pay for a insurance policy to cover any possible problems that your conveyancing work missed) Ulster pick up the tab for that. As far as I am aware, you might have to pay your solicitor a small bit (region of €100-300)

Pron gonna go for PTSB for lowest tracker but when the time comes will switch if can get lower rate