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Mortgage repayment

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  • 29-07-2008 9:04am
    #1
    Slidey
    Closed Accounts Posts: 12,811 ✭✭✭✭


    Guys a quick question for the people in the know

    Mortgage I have been offered is 87k + 20k improvement

    House after repair has been valued at 130k

    Bank are giving me a mortage but since the first application they have changed the interest rate to ECB + 2.05%

    Leaving me with repayments of 660 a month over 30 yrs

    Is this a rip off?

    Was thinking of trying to get else where but am on my own and only backmin my current job 5 months.

    The bank took into account that I worked here before for 7 yrs and wages were always paid into bank.

    Have no other loans or repayments.

    Opinions would be appreciated


Comments

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    #2
    WhatsGoingOn
    Closed Accounts Posts: 334 ✭✭WhatsGoingOn


    ECB + 2.05% is a very high tracker rate, what bank is that with? You would definitely get a better deal than that if you shopped around.


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    #3
    punchestown
    Registered Users Posts: 660 ✭✭✭punchestown


    Could you not pay it back over a shorter period?


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    #4
    tHE vAGGABOND
    Registered Users Posts: 6,686 ✭✭✭tHE vAGGABOND


    thats a giant tracker rate imho - shop around and see who else is out there..

    Your loan to value ratio is at around 82% - so do you need *all* that money for repairs? Drop a few grand off your '+20k' and you fall below the magic 80% loan to value rate, where you get a much better rate...


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    #5
    Slidey
    Closed Accounts Posts: 12,811 ✭✭✭✭Slidey


    Thanks for replies.

    Its the Ulster Bank..

    If I dont use all the money will the rate then fall?

    Just thought that because I am only back in my job a few months I wouldnt get it any other place than the bank where my wages get paid in and where they would know my employment history.

    Would paying back over 25 years make much of a change?

    Thanks again for your help


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    #6
    astrofool
    Registered Users Posts: 16,471 ✭✭✭✭astrofool


    You should try and contact a mortgage broker, and also a few banks yourself, they'll get you a far far better deal than that.


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