Which mortgage provider?

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?