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Mortgage & LTV Interest Rate Calculations

Are We Missing A Trick?

So here’s an interesting perspective, which may be a useful thought to have a conversation with your mortgage provider.

Typically the Loan to Value calculation determines the level of interest paid, it’s also a measure of risk.

If your house goes up in value, then your LTV ratio will reduce. and so should your interest rate.

With this in mind, do you value your house every year and then contact the mortgage provider to put your rates down, or have you not looked into this, in which case your interest rates could be significantly higher than they need to be?

Interestingly, Mortgage providers will know this. That said, I doubt that there is any automation built into the providers’ software tools to ensure all customers are being offered the lowest rate based on estimated or actual market value.

if not, are Mortgage providers knowingly charging more than they need over long periods of time, and if so should this be recouped?

What are your thoughts on this?

Activity Detail

Activity Status
In Progress
Activity Priority
Important & Urgent
Activity Type
Personal Listing

Reason For Activity (Your Ambition)

Reason for Posting
just a thought, that maybe some financial institutions may not be calculating interest rates correctly, and therefore this may need further investigation. Might this be another PPI instance? Given the huge amount of leverage that financial institutions have, it is in their gift to correctly calculate rates based on LTV ratios.

What Success Looks Like

Success Criteria
A fairer way for consumers to pay rates commensurate to more accurate LTV levels, and the potential to recoup from providers any long-term overcharge.

Requirements Needed To Progress Activity

Focus Groups
Activists, Anyone, General Public, Home Owners, Politicians, Press
Type of Help Needed
Direct Action, Public Awareness, Public Support

Business Hours/Availability

Location or Impact of Activity

Bank of England, 8AH, Threadneedle Street, Cornhill, City of London, Greater London, England, EC2R 8AH, United Kingdom

Author Info


Nadine James

Member since 1 month ago
View Profile

Next Steps

What Now?
Something for everyone to investigate maybe? If you think there's something more that needs doing let's join up in a group and discuss.

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