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?