Reduce Interest rate

T

tuktuk

Registered User
Messages
4
Hi,
I bought a house last year for 300k. I got 100% mortgage from my bank. My mortgage repayment interest rate is 3.8% at the moment (applicable to 100% mortgage).
Now the price of my house has risen to 350k and hence I'm actually borrowing around 85% of the cost of my house.
So instead paying 100% mortgage interest rate (3.8%), can I ask my Bank to reduce it to 85% mortgage interest rate(3.65%)?
 
No harm is asking - especially as they will know that there a number of lenders offering fees free remortgages or contributions towards remortgage costs.

Sarah

www.rea.ie
 
Check the terms and conditions but I doubt they would allow you to do this without some kinda penalty. I guess you could either remortgage or switch your mortgage though.
 
Presumably you will have to get the property valued by a valuer approved by your bank, and this may entail a fee (and of course agreement with your assessment of the value). It's something I have thought about myself recently.
 
Technically you're correct, it's definately worth a try. Pick up the phone and shop around, try some brokers.

However, it being a specialist product (100% mortgage) there may be some small print. I would suspect there is a clause there to keep you a customer for 3 years or so.
 
Re: Best Value Tracker Mortgage Rates (between 60% and 92% LTV)

In terms of the LTV, is it a good idea to get a valuation on your house to determine the actual LTV - It may push you into an alternative rate band (below 60%) and save a bit?

Is this subject to fluctuation or is there any rules that apply to this?

Would it be the bank that has to carry out the valuation, or can another body do it?

Thanks
 
Alternatively, if property decreased in value and the LTV went higher, say from 59% to 70%, would the bank be within it's rights to have a new valuation done on your property and so up the rate of interest that you must pay?
 
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