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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?

Desired Outcomes

What Are You Trying To Achieve
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.
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

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

Considerations & Next Steps

Next Steps For Interested Parties
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.

Location or Impact of Ambition

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

Other Information

Ambition Status
In Progress
Ambition Priority
Important & Urgent

Business Hours/Availability

Author Info


Nadine James

Member since 3 months ago
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Nadine James

Member since 3 months ago
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