Reduction of interest rate

[dacoon]

Hi all,

Apologies if this isn't the right place to ask this question, but have any of you heard of a scheme, whereby if the mortgage remaining to be paid is less than half of the value of the house, you can avail of a preferential lower rate of interest.

I just heard a vague whisper about it. I am interested in availing of it, purely because I can ask for the reduction, then inform the lender to keep the direct debit at the same rate, and reduce the capital due on the mortgage.

Thanks

D

 

[Spin]

Hi D,
I think you are referring to a loan to value mortgage - up to recently all the banks offered loan to value trackers i.e if the loan to value on your property was 60% then you could avail of 0.60% over the ECB rate. Trackers were withdrawn in the last month or so. Some banks are offering lower variable rates and fixed rates depending on your loan to value so you need to check with your bank although more than likely they will only offer them to new customers.
Spin

 

[dacoon]

Many thanks spin,

I was wondering was it the LTV, nice to have been proved right.

D