Rate Query LTV with AIB

[Monkeyboots]

Looking for views on this situation please!

We have a split rate mortage on our home. We opted for 60% of the loan in tracker (TG!!) and 40% on a fixed rate.

We received a letter from AIB yesterday to inform us that the fixed rate will expire in March, which we expected anyway!

The new rates are quite scary in comparison to what we had previously. Then I noticed the Loan-to-Value options of which there are 3 categories:

LTV : <=50% - 4.090%;
LTV : >50%<=80% - 4.290%;
LTV : >80% - 4.490%

(LTV to be verified with an independant valuation)

Based on the fixed rate loan ONLY, as against the approx value of the house (checked with an estate agent), we currently fit into the <50% category on the 40% loan only, but not when the loans are combined.

I queried with AIB today whether we'd qualify for the <50% on the basis the letter states "Loan-to-Value" and not "Loans-to-Value" As expected they said they will look at the total borrowings. Even though i am not sure they'd even link the two accounts and they have totally different account numbers, correspodance, etc...maybe i'm being niave here!

Some people might think im being cheeky, but coming off this fixed rate is going to kill us, as we are already strugging, so I am chancing anything!!

Just wondering what peoples views are on this, does anyone think I should fight this considering that nowhere in the T&C's does it mention combined loans for this purpose.
I dont want to go organising a proper valuation which will cost €130 if this is going to be a complete waste of time and money.

Thanks

 

[newirishman]

I genuinely think you would be wasting your time (and money if you do the proper valuation).
Don't know how big the mortgage is but the difference on repayments between 4.09% and 4.49% on a 25 year, 200K mortgage is around 50 euro (approx 1060 to 1111 repayment per month).
Sure every little helps but...

 

[emeralds]

I would have said they would look at the total borrowings...

 

[cloughy]

it would be total borrowing rater than just the portion of the loan that is fixed, as they are concerned with your total amount outstanding versus the value of the house. I make the difference between 4.09 and 4.49% on a 200k mortgage is 800 per year, so certainly worth considering if you think your overall borrowings to the value of the property is less than 50%.

 

[Monkeyboots]

Appreciate the comments guys.

I think we'll just have to grin and bear it. However I'll be suggesting to AIB that they update their T&Cs to clearly state LTV rates are on a cumulative loan basis.