Which mortgage provider?

Alfagtamini

Hi all

Myself and my partner have been approved for a mortgage with Ulster bank, BOI and a broker through haven.

Has anyone got any past experience which any of the above.

The Monthly repayments and rates are all fairly similar.

We are unsure though of who to go with

Any tips would be appreciated

Gumbo

Hold tight for a few days. UB are reducing their rates in the coming days. We are approved with th hope of drawing down in the next 2 weeks and our adviser called to tell us our fixed rate is dropping from 4.45 to 3.99. It wasn't even in her internal calculator yet so she couldn't tell us the exact saving we would make but just confirmed it will be in force by the time we draw down.

Alfagtamini

kceire wrote: »

Hold tight for a few days. UB are reducing their rates in the coming days. We are approved with th hope of drawing down in the next 2 weeks and our adviser called to tell us our fixed rate is dropping from 4.45 to 3.99. It wasn't even in her internal calculator yet so she couldn't tell us the exact saving we would make but just confirmed it will be in force by the time we draw down.

That's great info thanks for letting me know. If you don't mind be asking are you going for the 3 or 5 year fixed ?

Gumbo

paulryanmini wrote: »

That's great info thanks for letting me know. If you don't mind be asking are you going for the 3 or 5 year fixed ?

We're actually going for the 7 year fixed believe it or not at 3.99%.
It just works for us as we have a cheap tracker on one house already and want to be sure what our payments will be going forward with that and the rental property.
Everybody will be different though.

Just dug out the press release : http://m.independent.ie/business/personal-finance/ulster-bank-puts-it-up-to-rivals-with-mortgage-cut-for-all-customers-30962914.html

Alfagtamini

kceire wrote: »

We're actually going for the 7 year fixed believe it or not at 3.99%.
It just works for us as we have a cheap tracker on one house already and want to be sure what our payments will be going forward with that and the rental property.
Everybody will be different though.

Just dug out the press release : http://m.independent.ie/business/personal-finance/ulster-bank-puts-it-up-to-rivals-with-mortgage-cut-for-all-customers-30962914.html

That's interesting as the max we were offered was 5 years fixed.
I'll double check tomorrow if they can offer 7.

Out of the 3 options we found ulster bank the best to deal with everything was done on time and we didn't once have to chase them for information.

Gumbo

paulryanmini wrote: »

That's interesting as the max we were offered was 5 years fixed.
I'll double check tomorrow if they can offer 7.

Out of the 3 options we found ulster bank the best to deal with everything was done on time and we didn't once have to chase them for information.

I'm currently approved with UB and KBC. FOund both of them the best to deal with too.

Alfagtamini

kceire wrote: »

I'm currently approved with UB and KBC. FOund both of them the best to deal with too.

Thanks , think we will go with UB as we both bank with them and never had any bother with them

the groutch

kceire wrote: »

We're actually going for the 7 year fixed believe it or not at 3.99%.

not saying it's the right or wrong decision, only time will tell, but fixing for 7 years is very high risk.

Villa05

the groutch wrote: »

not saying it's the right or wrong decision, only time will tell, but fixing for 7 years is very high risk.

It is actually prudent. Going variable by the nature of the product is very high risk.

Woodville56

5 or 7 years is a very long time to be locked into a fixed rate mortgage - what if, as expected, variable rates drop further or a competitor bank offers better switching rates in say a couple of years and the OP is locked into a fixed rate for 5 or 7 years and can't take advantage of such an offer ? And do you really think that a lender is offering fixed rates to their own disadvantage over such a period ? Was at a similar decision point last year and opted for a 1 year fixed rate - the interest rate scenario beyond that was anyone's guess - could go either way but I was never convinced that even 5 year fixed rate was worth it on the off chance that variable rates would rise over the course of the 5 years lock in. There is huge pressure on banks to lower their lending rates in the context of much cheaper European mortgage lending and it's anyone's guess which way our rates are headed over the next few years, never mind 5-7 years hence.. Good luck and happy days with the house purchase whichever lender & term you go with !

Villa05

3.99%, historically, is an extremly low interest rate. There is a lot to be said about the security of knowing your repayment amount long term. Yes they may go lower, but also over the 7 years they could go a lot higher. Banks have shown their form when it comes to predicting the future and if they screw up there is someone there to bail them out unfortunately.

As a rule of thumb if you can afford to pay more tha your monthly repayment or expecting a cash lump sum in the future I would go variable otherwise and especially in this environment I would fix for as long as possible

Villa05

As for which bank to go with. Avoid the ones that are only offering discount to new customers. Once you sign up you are no longer a new customer

Alfagtamini

Thanks for all your replys.

The reason I am drawn to the fixed rate is you know how much you have to put aside each month. You can plan ahead for holidays and future spending without having to worry about keep a little extra aside just in case.
As a few of you said in a few years time depending on the interest rate I could be paying a lot more than I have to if I stayed with variable.

It's a tough decision

otto500

Went with boi. They were extremely fast and efficient. There was no bulls%it delays. Would definitely recommend them

Dearg81

I went with a 1 year fixed rate with KBC which is 3.55%, they reduce it by 0.2% if you open a current account with them which I did so it's effectively 3.35% for me. I can afford to to risk them going up so it works for me.

Nobody here can tell you what the rates will be in 1,3 or 5 years so the best choice for you will depend on how much a risk you can take in terms of rate increases.

twerg_85

Woodville56 wrote: »

5 or 7 years is a very long time to be locked into a fixed rate mortgage - what if, as expected, variable rates drop further or a competitor bank offers better switching rates in say a couple of years and the OP is locked into a fixed rate for 5 or 7 years and can't take advantage of such an offer ? And do you really think that a lender is offering fixed rates to their own disadvantage over such a period ?

Equally (or oppositely!), I could say:
20 or more years after expiry of a 7 year fixed term is a very long time to be subject to variable rate mortgage - what if, as expected, variable rates vary over the long term and the OP can't afford an increase ? And do you really think that a lender is offering variable rates to their own disadvantage over such a period ?

F.

Heisenberg1

Don't fix yet OP have a read.

http://www.independent.ie/opinion/columnists/charlie-weston/bankers-face-day-of-reckoning-over-mortgagerate-apartheid-30991509.html

Eugene Norman

Heh. The high court is talking nonsense. The point of trackers was to track the ECB rates. People who failed to get them didn't sign into that contract so why the discrimination.

timetogo

Dearg81 wrote: »

I went with a 1 year fixed rate with KBC which is 3.55%, they reduce it by 0.2% if you open a current account with them which I did so it's effectively 3.35% for me. I can afford to to risk them going up so it works for me.

Nobody here can tell you what the rates will be in 1,3 or 5 years so the best choice for you will depend on how much a risk you can take in terms of rate increases.

That's a great rate. After your 1 year though what does your rate go up to?
Is it these? http://www.kbc.ie/index.jsp?p=115&n=264&a=239

I'm with them at the moment (have been for about 7 years) and my LTV is less than 70% but they don't care. I'm planning on jumping ship in the next couple of months.

Alfagtamini

Thanks everyone for your responses.

We are still unsure what to do in relation to fixed VS variable.

Its a tough decision to make that's for sure!!

Gumbo

paulryanmini wrote: »

Thanks everyone for your responses.

We are still unsure what to do in relation to fixed VS variable.

Its a tough decision to make that's for sure!!

Same here after reading this thread!

Villa05

If unsure go with variable. You can alwayso fix later if you want

Alfagtamini

Villa05 wrote: »

If unsure go with variable. You can alwayso fix later if you want

At the moment I am tempted my variable with the broker who has approved us.

A friend has his mortgage with him for the last 6 years and he is constantly moving it from supplier to supplier to get the lowest rate.

dearg lady

Heisenberg1 wrote: »

Don't fix yet OP have a read.

http://www.independent.ie/opinion/columnists/charlie-weston/bankers-face-day-of-reckoning-over-mortgagerate-apartheid-30991509.html

'brave Dublin couple' I love it! Perhaps they should instead look at other investments if this is not working for them?

by the seaside

the groutch wrote: »

not saying it's the right or wrong decision, only time will tell, but fixing for 7 years is very high risk.

It strikes me as an odd way of looking at things. Variable rate is gambling and higher risk. Fixed rate is only high risk in the same way that not betting on a horse is high risk, because you may miss backing a winner.

OK it's not actually the same but hopefully the point males sense.

Sound Bite

paulryanmini wrote: »

At the moment I am tempted my variable with the broker who has approved us.

A friend has his mortgage with him for the last 6 years and he is constantly moving it from supplier to supplier to get the lowest rate.

By switching a mortgage constantly, the cost savings are quickly eroded by the costs of legals, valuation and broker fees. Seems like an opportunistic broker there....be wary.

Why not split the mortgage 50% variable, 50% fixed. If rates start to increase you can always fix the variable element (albeit at a higher rate) at a later stage too. You can also accelerate payments to the variable element if you have e tra cash.

Bigcheeze

Eugene Norman wrote: »

Heh. The high court is talking nonsense.

I guess you're a Supreme Court judge ?

phormium

If you can't decide fixed or variable hedge your bets and do a split mortgage, half fixed/half variable. Still won't be able to switch providers/sell within the fixed term without paying a penalty to break the fixed portion but at least if you really want to it will be only half the penalty.

Woshy

We went variable because we wanted to overpay. Even putting as little as €25 extra every month on the mortgage reduces the term by 2 years and wiould save us over €8000 in interest payments. That's crazy when you think how easily you'd spend that amount on a takeaway or a round of drinks.

Villa05

Woshy wrote: »

We went variable because we wanted to overpay.

That makes sense especially withe the new rules on mortgage lending, one would find that they would have some bit extra left at the end of the month.
I would keep a close eye on fixed rates though. These are emergency low rates and will not be around long term. Don't miss the opportunity to fix

Gumbo

Woshy wrote: »

We went variable because we wanted to overpay. Even putting as little as €25 extra every month on the mortgage reduces the term by 2 years and wiould save us over €8000 in interest payments. That's crazy when you think how easily you'd spend that amount on a takeaway or a round of drinks.

We have been doing that on our Tracker since 2006 also. As you say, €25 here or there makes a difference in the long term.
Its with BoSI, so no direct debit, i just manually transfer every fort night (Pay Day) and if i have 50 extra, it goes with it.

Heisenberg1

Villa05 wrote: »

That makes sense especially withe the new rules on mortgage lending, one would find that they would have some bit extra left at the end of the month.
I would keep a close eye on fixed rates though. These are emergency low rates and will not be around long term. Don't miss the opportunity to fix

Why are they emergency low rates ?

Dearg81

timetogo wrote: »

That's a great rate. After your 1 year though what does your rate go up to?
Is it these? http://www.kbc.ie/index.jsp?p=115&n=264&a=239

I'm with them at the moment (have been for about 7 years) and my LTV is less than 70% but they don't care. I'm planning on jumping ship in the next couple of months.

This is the link to the new customer rates - http://www.kbc.ie/personal/mortgage/mortgageinterestrate? I'm actually on 3.5(-0.2).

I assumed I could choose again after 1 year but your link has me worried now. I've sent an email to my broker to confirm what rates I'll be on after 1 year.

timetogo

Dearg81 wrote: »

This is the link to the new customer rates - http://www.kbc.ie/personal/mortgage/mortgageinterestrate? I'm actually on 3.5(-0.2).

I assumed I could choose again after 1 year but your link has me worried now. I've sent an email to my broker to confirm what rates I'll be on after 1 year.

I think I'm the bearer of bad news so. I rang KBC a few months about this. The guy I was talking to told me the new customer rates were introductory only. He told me I could close out my mortgage, pay the fees for a new mortgage (about a grand) and get the new customer rates but they'd only be valid for the first year. As the fees were about the same as what I'd save on a year of the new rates it wasn't much point in me doing it.

On the plus side after you've been with them a year you can do the sums yourself. If their existing customer rates are still crap it might be worth your while shopping around.

KBCs rates for existing customer haven't changed for a few years now so they might be due.

Dearg81

timetogo wrote: »

I think I'm the bearer of bad news so. I rang KBC a few months about this. The guy I was talking to told me the new customer rates were introductory only. He told me I could close out my mortgage, pay the fees for a new mortgage (about a grand) and get the new customer rates but they'd only be valid for the first year. As the fees were about the same as what I'd save on a year of the new rates it wasn't much point in me doing it.

On the plus side after you've been with them a year you can do the sums yourself. If their existing customer rates are still crap it might be worth your while shopping around.

Thanks for that info, I haven't actually drawn down yet so I might reconsider the term if it's not too late. If it's too late though I'd imagine I'll be shopping around like you next year. I'm annoyed my broker didn't tell me this though!

gogreen81

I would say split it 50-50 , or 70-30 whichever works for you.where 30 is the variable which u can pay out anytime at ur flexivbility.
now if u have a 5 yr plan in mind, think how much saving u can accumulate in 5 yrs and can u pay out all 30% in these 5 yrs.
then after 5 yrs, shop around for the best rates.. It would be starting afresh, even if the rates are high, at that point say 6%, you should be able to get a good % with shopping around. Consider that ur variable rate would have also gone up after 5 yrs.

Also keep in mind that BOI offer cash back scheme with mortages, but on certain conditions. they may not give u cash back of all 100% with 70-30 ratio. try to work out numbers and maximize the gain..
Sounds simple I wish it was as simple

Villa05

Heisenberg1 wrote: »

Why are they emergency low rates ?

The base rate is determined by the ecb and as Europe and irish banks are in a bad place economically they are being artificially propped up by money printing and a base rate of .02%

Heisenberg1

Villa05 wrote: »

The base rate is determined by the ecb and as Europe and irish banks are in a bad place economically they are being artificially propped up by money printing and a base rate of .02%

With the base rate so low the rate that the banks are offering are really bad it's not like they are offering 2% rates they are really high compared to other euro zone country's.

tanyasquirrel

Keep in mind: BOI actually pays your 1% stamp duty, so for 300 k house it saves 3k in the very beginning when you need it at most (as you need to get furniture, legal costs, etc.). So, just calculate the cost of your mortgage for your plan for all banks, they have online calculators, and if the difference is smaller then your stamp duty, probably consider BOI.

UB is about to drop their rates, true, I was said the same last week. So, try to wait few weeks for the final decision.

Villa05

Heisenberg1 wrote: »

With the base rate so low the rate that the banks are offering are really bad it's not like they are offering 2% rates they are really high compared to other euro zone country's.

Welcome to the realities of bailing out the banks. As they royally messed up and so little was done to oppose the bank guarantee.
You and many future generations will be paying for it at every turn. 10% for a straight forward personal loan. Legalised theft in current environment.
That's why people need to seize the opportunity to fix when a good opportunity arises. Many problems still there for those banks and they will looking for fresh victims to pay for it.

Woodville56

Villa05 wrote: »

Welcome to the realities of bailing out the banks. As they royally messed up and so little was done to oppose the bank guarantee.
You and many future generations will be paying for it at every turn. 10% for a straight forward personal loan. Legalised theft in current environment.
That's why people need to seize the opportunity to fix when a good opportunity arises. Many problems still there for those banks and they will looking for fresh victims to pay for it.

At what rate would you reckon it would be opportune to fix ?
Say < 3.5% over 3 years or longer ? Not unreasonable in the context of prevailing EU interest rates maybe, but unlikely on the Irish mortgage scene ? Wishful thinking perhaps ?

Heisenberg1

Woodville56 wrote: »

At what rate would you reckon it would be opportune to fix ?
Say < 3.5% over 3 years or longer ? Not unreasonable in the context of prevailing EU interest rates maybe, but unlikely on the Irish mortgage scene ? Wishful thinking perhaps ?

Can't see fixed rates dropping below 3.5% the Irish banks are creaming their customers so I can't see that changing in the near future. Maybe the likes of AIB who have prices there fixed rates better than the LTV variable rates see a further drop down the line.

Woodville56

Heisenberg1 wrote: »

Can't see fixed rates dropping below 3.5% the Irish banks are creaming their customers so I can't see that changing in the near future. Maybe the likes of AIB who have prices there fixed rates better than the LTV variable rates see a further drop down the line.

Yeah, was thinking of AIB specifically in my earlier question on lower variable v fixed rate at 3.5% or less, as they currently are offering 1 year fixed at 3.5%, as against a variable of 4.05 - new customer rates. Perhaps they feel variable will drop further but I somehow can't see it dropping by .55% over the course of the next 12 months, which makes me, as a first time buyer with AIB mortgage approval, inclined to fix for 1 year at 3.5%. Their 2-5 year fixes are available at 3.8-3.9% though, but not inclined to take the bait on longer than a one year fix at this point.

gogreen81

Using this thread to ask another linked question.
there are definitely better rates for 80LTV than 90 LTV. And there are the only 2 numbers I see in mortgages. Is there a 85% etc?

I think I will be close to 15% for the house which I intend to buy.. or am targeting that range. But seem to miss out on the 80LTV benefit.saving another 4-5% would take more time which I dont want to do.

or is 90LTV better in the sense that u have surplus in hand?

Do ppl really consider this while choosing a Fixed rate?