Mortgage Rates

tendjose

Hi,

I'm buying but undecided between going for a variable rate, 3 years fixed, or 5 years fixed.

What's your advice?

Thanks

km79

tendjose wrote: »

Hi,

I'm buying but undecided between going for a variable rate, 3 years fixed, or 5 years fixed.

What's your advice?

Thanks

http://touch.boards.ie/thread/2057585266/2/#post99446305

tendjose

km79 wrote: »

http://touch.boards.ie/thread/2057585266/2/#post99446305

That thread topic is not exactly what I'm looking for, but Thanks.

iainBB

tendjose wrote: »

Hi,

I'm buying but undecided between going for a variable rate, 3 years fixed, or 5 years fixed.

What's your advice?

Thanks

Depending on everything below plus more.

its is such a general question the can't be answered for you. sorry
what age,
what income
what mortgage company
mortgage length
mortgage amount
are you single
have you a good job
are you planing to move jobs
are you planing to have kinds
and if so how many kids
what will the mortgage rate be after the fixed term.

Trish56

I'd be inclined to stick with variable for the moment or a 2 year fixed in the hope that when the two year is up that rates will still be low and perhaps then go for a 5 year fixed. Also will depend on lender as some lenders charge their existing customers a higher fixed rate than new customers.

tendjose wrote: »

Hi,

I'm buying but undecided between going for a variable rate, 3 years fixed, or 5 years fixed.

What's your advice?

Thanks

iainBB

Its still depends on the OP original circumstances

Ulster Bank are offing fixed for 1, 3 or 5 years and then offer a high rate of var interest for the remaining of the loan 25 years plus for example.

if you are planing to have kids or your financial circumstances change you may be locked into their high rate unable to move mortgage companies for a very long time. banks think in 10 years slog in 3 and 5 years.

tendjose

iainBB wrote: »

Depending on everything below plus more.

its is such a general question the can't be answered for you. sorry
what age,
what income
what mortgage company
mortgage length
mortgage amount
are you single
have you a good job
are you planing to move jobs
are you planing to have kinds
and if so how many kids
what will the mortgage rate be after the fixed term.

I thought it depended only in what you predict for the market future.

If i think the rates are going to grow in the next years, go for fixed, otherwise go for variable, not?

iainBB

tendjose wrote: »

I thought it depended only in what you predict for the market future.

If i think the rates are going to grow in the next years, go for fixed, otherwise go for variable, not?

Banks know this is a long term investment. so offering a fixed rate for VERY short amount of time, for better gains in the future is always in there interest.

Ulsterbank or offering a low fixed rate now for 1 ,3, 5 years and then offer a high var rate after that for the remaining. ( when the hope you are locked in) of course this is a gamble for them. lose out for 3 years in the hope to make tons of cash with the remaining 20 years. some people will win this. most will not and stuck with high var rate you can't get out of.

If you have kids move to one income spend more money on life style, get a car loan, change jobs, etc. then apply to change mortgage after the fixed rate you will have a much harder time.

Most people after the get the mortgage relax with their income and outgoings. and they is the main reason why they can't change mortgages companies.

If in 1,3,5 years time you will be better off i.e. more income, no kids, no loans, better savings, growing investments, assets, no debt then go for it no questions asked. you will have no problem changing to another mortgage company after the fixed term is up. remember you have to change companies after the fixed term as the the high var rate will be too high to keep paying.


if you are planning to tons of kids:), spend more on fun then savings and retirement, move jobs,, reduce hours in current job, get a new car, get a extension on the house, relax with the credit card , get on over draft, move from two incomes to one,

Be very careful you don't get locked into a mortgage you can't get out off.

JTMan

tendjose wrote: »

Hi,

I'm buying but undecided between going for a variable rate, 3 years fixed, or 5 years fixed.

What's your advice?

Thanks

Variable, because rates are on a downward trend, choose a bank that passes on variable cuts to existing customers. For example, Ulster Bank pass on cuts. KBC don't.

tendjose

JTMan wrote: »

Variable, because rates are on a downward trend, choose a bank that passes on variable cuts to existing customers. For example, Ulster Bank pass on cuts. KBC don't.

Yeah, but the variable rate of KBC is much lower than Ulster...

iainBB

Rate cut today by AIB more to follow . . .

http://www.irishtimes.com/business/personal-finance/why-aib-s-latest-rate-cut-doesn-t-go-far-enough-1.2640833

tendjose

JTMan wrote: »

Variable, because rates are on a downward trend, choose a bank that passes on variable cuts to existing customers. For example, Ulster Bank pass on cuts. KBC don't.

What do you exactly mean by pass on cuts?

You mean if I'm in a LTV of 60-80% with KBC and that if at some stage I only owe 59% KBC won't apply the new rate, while Ulster will?

If you mean that, is not worth because if I'm on a LTV of 67% with KBC I'm on an APRC rate of 3.37% and the APRC rate for Ulster for a LTV of 59% is 3.6%, which is still much bigger than 3.37%.

If you mean other thing by passing on cuts, can you explain?

tendjose

iainBB wrote: »

Rate cut today by AIB more to follow . . .

http://www.irishtimes.com/business/personal-finance/why-aib-s-latest-rate-cut-doesn-t-go-far-enough-1.2640833

KBC still has a best APRC than AIB for variable rates, and the APRC is what matters.

tendjose

JTMan wrote: »

Variable, because rates are on a downward trend, choose a bank that passes on variable cuts to existing customers. For example, Ulster Bank pass on cuts. KBC don't.

And if at some stage if find a better deal elsewhere than KBC, just move your mortgage to the bank that offer you the better deal. Assuming you are in positive equity, all Banks will accept your move.

iainBB

About to make a move now and contact my own bank first before moving currently on 3.9 %with about 60 LTV.

km79

tendjose wrote: »

And if at some stage if find a better deal elsewhere than KBC, just move your mortgage to the bank that offer you the better deal. Assuming you are in positive equity, all Banks will accept your move.

How much positive equity would we need ?
We have been trapped with ulster bank and their high variable rates for 9 years now
We should JUST be out of NE I think at this stage but will any bank give a switcher mortgage for greater than 90% LTV ?

tendjose

km79 wrote: »

How much positive equity would we need ?
We have been trapped with ulster bank and their high variable rates for 9 years now
We should JUST be out of NE I think at this stage but will any bank give a switcher mortgage for greater than 90% LTV ?

I think you need to owe less than 80% the current value of your property.

Just go to some banks and ask them to make sure.

Chris_5339762

Anyone else notice that KBC hasn't reduced their standard variable rate in all of this?

Trish56

There's a huge amount of customers still in negative equity throughout the country so KBC are offering the attractive rates to new customers and switcher's at less than 80% loan to value. Why are they not reducing their variable rate to all customers.

Chris_5339762 wrote: »

Anyone else notice that KBC hasn't reduced their standard variable rate in all of this?

iainBB

Trish56 wrote: »

There's a huge amount of customers still in negative equity throughout the country so KBC are offering the attractive rates to new customers and switcher's at less than 80% loan to value. Why are they not reducing their variable rate to all customers.

The deal are under the table now on an individual basis.

Chris_5339762

I'm on their SVR and it is borderline worth it to move (I'm overpaying) so it would be nice if they did the fair thing and decreased them along the with the rest of the rates. But I know there are a lot of people a lot worse off than I am who are getting screwed, especially since KBC will not let you move from the SVR to their cheaper LTV rates.

mickoneill31

iainBB wrote: »

The deal are under the table now on an individual basis.

Are you sure of this? I asked about my rate before I started the switching process. I got politely told to shag off.

iainBB

mickoneill31 wrote: »

Are you sure of this? I asked about my rate before I started the switching process. I got politely told to shag off.

I am with ICS not KBC i was speaking in more general term's. I am sure with ICS and my mate got a deal with AIB. Can't say anything about other lenders.

mickoneill31

iainBB wrote: »

I am with ICS not KBC i was speaking in more general term's. I am sure with ICS and my mate got a deal with AIB. Can't say anything about other lenders.

Well with KBC they don't negotiate

iainBB

mickoneill31 wrote: »

Well with KBC they don't negotiate

I am negotiating with ICS again at the moment. And if they don't play ball i will move.

It's so much easier to talk to them then move but that is the last resort. .

km79

iainBB wrote: »

I am negotiating with ICS again at the moment. And if they don't play ball i will move.

It's so much easier to talk to them then move but that is the last resort. .

I may call in to my local UB branch so but .......they will know that I'm only slightly in PE and therefore nobody will take me anyway ?

mickoneill31

iainBB wrote: »

I am negotiating with ICS again at the moment. And if they don't play ball i will move.

It's so much easier to talk to them then move but that is the last resort. .

I know, I don't understand the maths.
If I move now to an alternative bank (which I'm doing) and then look back at KBC in a few years (I might do that) and see that I can save more money by switching back I will consider it.

So the end result for KBC is that they'd lose whatever profit they'll make from my mortgage for at least 5 years, then they'll probably have an incentive to get me as a new customer which will cost them thousands and then I'll be back as a customer on their new rates.
They'd prefer to lose me as a customer and I either never come back (most likely) or I come back to them and they lose thousands in profit and incentive and I get the deal I wanted at the start.

Theboinkmaster

I'm moving from KBC they don't care - absolute disgrace not passing on rate reductions to existing customers.

With other banks covering legal fees it makes perfect sense, €100 per month better off - well worth a bit of hassle.

newacc2015

Theboinkmaster wrote: »

I'm moving from KBC they don't care - absolute disgrace not passing on rate reductions to existing customers.

With other banks covering legal fees it makes perfect sense, €100 per month better off - well worth a bit of hassle.

Banks know customers dont switch their banks. Literally a few thousand out of about 3 million bank customers switched banks for their current account last year. It is even smaller for mortgages

Why would a bank cut their SVR for thousands of customers, when most of them wouldnt switch anyway They are in the business to make money.

ABC101

Article in today's S.B. Post about AIB potentially reducing rates again to gain market share.

http://personal.aib.ie/our-products/mortgages/switcher-mortgage

There are other savings like no current account fees, which while small can add up.

I am thinking of switching to AIB in the autumn, as I would like to have everything under one roof, one log in code and be able to see account balances, make transfers etc.

Two things are happening... property prices are continuing to rise steadily, this will assist those in Negative equity, and Banks are starting to get competitive by trying to gain market share in offering lower rates (with the exception of some banks of course!!).

While it is impossible to predict the future, I think interest rates set by the ECB will remain low for some time to come. Greece has not gone away, is still in crisis and is probably looking for it's 4th hair cut on debt relief.

pajoguy

We negotiated a discount of 0.4% on ours with ICS/ DILOSK last year. Down from 4.35 to 3.95. It was a discount that would be applied for the term of thr mortgage. They then tried to get me to fix at 3.5 or 3.6 for a few years and i nearly jumped but when i asked about the rate after the fixed term was up they said that i would go onto their SVR 4.8!!! I asked about my discount and they said it would end if i fixed!
Looking into switching to AIB at this stage. Although the other half is not going back to work full time until July.

iainBB

pajoguy wrote: »

We negotiated a discount of 0.4% on ours with ICS/ DILOSK last year. Down from 4.35 to 3.95. It was a discount that would be applied for the term of thr mortgage. They then tried to get me to fix at 3.5 or 3.6 for a few years and i nearly jumped but when i asked about the rate after the fixed term was up they said that i would go onto their SVR 4.8!!! I asked about my discount and they said it would end if i fixed!
Looking into switching to AIB at this stage. Although the other half is not going back to work full time until July.

Hi Pajoguy can i was what is your LTV ?

We did that same last year got from 4.5% to 3.9% because of LTV of below 80%

Now I am back talking to them to get it below 3.3%

pajoguy

iainBB wrote: »

Hi Pajoguy can i was what is your LTV ?

We did that same last year got from 4.5% to 3.9% because of LTV of below 80%

Now I am back talking to them to get it below 3.3%

Our LTV is <60%

Have they given u any indication as to how low.
I negotiated on the basis of getting 3.5 off KBC.
I wouldnt mind getting away from them altogether. I bank with AIB so it would easier to switch to them.

iainBB

pajoguy wrote: »

Our LTV is <60%

Have they given u any indication as to how low.
I negotiated on the basis of getting 3.5 off KBC.
I wouldnt mind getting away from them altogether. I bank with AIB so it would easier to switch to them.

No indication of rate yet have another call with them tomorrow about it, but looking at current var rates it would have to be below 3.3%.
I know they have a fixed rate available but we over pay by 150 euro a month. and rates are dropping at the min so below 3.3 is my limit.

We might have to get the house price confirmed below the 60% LTV rate but its is very close to it.

iainBB

wow don't have much faith in the Dail but time will tell.

http://www.rte.ie/news/2016/0517/788897-politics-ireland/

iainBB

pajoguy wrote: »

Our LTV is <60%

Have they given u any indication as to how low.

I was on to them there and the offered a rate of 3.69% variable down from 3.9. % but is still very high in today's market and they way rates are going these days there is still more to save.

Will have to make an application with other bank now.

ted1

Just off the phone to AIB I'm fixed till Dec 17 @ 3.85%. I can break for 540 and get 3.6 moving to 3.4% if today's paper is to believed that will drop further to 3% very tempting.
Do you know if they have flexibility on breakage fees?

iainBB

ted1 wrote: »

Just off the phone to AIB I'm fixed till Dec 17 @ 3.85%. I can break for 540 and get 3.6 moving to 3.4% if today's paper is to believed that will drop further to 3% very tempting.
Do you know if they have flexibility on breakage fees?

There is a great calc here for seeing the difference between rates ( not included is the fixed rate breaking fee )
http://www.consumerhelp.ie/rate-change-calculator

There is a big different in savings over the mortgage for us 3.9 is current
3.3% is 21K savings and 3.69% is 7K savings over the life of the mortgage,

Each percent point is about 3K savings for us.

iainBB

its all kicking off today . . .

another leader joining the market soon.

http://www.independent.ie/business/personal-finance/property-mortgages/banks-slash-interest-rates-on-mortgages-in-fear-of-new-lender-frank-money-34721268.html

2.8% that sounds magical

Letree

EBS normally always drop their rate when AIB drops i can't understand why not this time.

Dr.Rieux

Letree wrote: »

EBS normally always drop their rate when AIB drops i can't understand why not this time.

It says in the Indo article above that they are likely to bring out something similar to the BOI/PTSB 2% cashback on the mortgage instead.

km79

Come on ulster bank

iainBB

here is the new company we will all be going with shortly


http://thefrankmortgage.ie/

Letree

Dr.Rieux wrote: »

It says in the Indo article above that they are likely to bring out something similar to the BOI/PTSB 2% cashback on the mortgage instead.

Bit of a snub to their existing customers though.

km79

What kind of a valuation do I need to get to work out my LTV?
The estate agent said he can call out and value house free of charge if we are thinking about selling
Is this all that's needed

iainBB

km79 wrote: »

What kind of a valuation do I need to get to work out my LTV?
The estate agent said he can call out and value house free of charge if we are thinking about selling
Is this all that's needed

technically you will need to get the validation done by your bank approved estate agent if you are using it as a bargaining chip with new bank.

But if you are just talking to your existing bank you can use property price register would do for your area.
or as you said get one of those free est from local estate agents.
depends on bank really.

Gomango

In the next month or two i will draw down a mortgage at 3.6% - 3 year fixed 2% cashback with PTSB.

After reading the recent news i will be going for variable and fixing in the next year or two.

Will the drop in rates happen though?!

iainBB

Gomango wrote: »

In the next month or two i will draw down a mortgage at 3.6% - 3 year fixed 2% cashback with PTSB.

After reading the recent news i will be going for variable and fixing in the next year or two.

Will the drop in rates happen though?!

No one can tell the future but positive signs point to YES on var rates drop .

pajoguy

iainBB wrote: »

I was on to them there and the offered a rate of 3.69% variable down from 3.9. % but is still very high in today's market and they way rates are going these days there is still more to save.

Will have to make an application with other bank now.

Hi.
I see on the ics website they are offering LTV rates to existing customers. Since when are they doing this. Only for going on website I wouldnt have known. It beggars belief they wouldnt contact existing customers via email to make them aware of offers. Suppose its easier to fleece the customer!

iainBB

pajoguy wrote: »

Hi.
I see on the ics website they are offering LTV rates to existing customers. Since when are they doing this. Only for going on website I wouldnt have known. It beggars belief they wouldnt contact existing customers via email to make them aware of offers. Suppose its easier to fleece the customer!

Cheers for that got back to them there. about not bother to offer the rate before I made the call.

pajoguy

iainBB wrote: »

Cheers for that got back to them there. about not bother to offer the rate before I made the call.

Did they give u a reason for not contacting you about the 3.69%
I have emailed them. I am going to meet with AIB this week. Its a disgrace.