Mortgage rates

Dublingirl80

Hi, I'm wondering how often banks usually change their rates? My fixed rate is almost up with bank of Ireland but their rates seem to be the worst out there. I've received the 2 percent lump sum also which I have to pay back if I switch so also wondering has anyone else done this and whether they charge you the full amount? Anyone any idea how often banks change their rates? Really hoping bank of Ireland improve theirs as even AIB rates are now below 3 percent. Anyone aware of a time of year changes tend to happen or is it just unpredictable?

Samuel T. Cogley

The cash back is paid for (more than paid for) by their rates. I doubt BOI will change a policy that's drawing in customers, namely high rates and cash back.

Dublingirl80

I'm curious if it's likely they will improve their rates given all the other banks have? Wish I'd went with ulster bank but I wanted the lump sum for furniture etc.

Samuel T. Cogley wrote: »

The cash back is paid for (more than paid for) by their rates. I doubt BOI will change a policy that's drawing in customers, which id high rates and cash back.

Samuel T. Cogley

Dublingirl80 wrote: »

I'm curious if it's likely they will improve their rates given all the other banks have? Wish I'd went with ulster bank but I wanted the lump sum for furniture etc.

I doubt by very much as the lump sum is attractive to many.

Dublingirl80

Samuel T. Cogley wrote: »

I doubt by very much as the lump sum is attractive to many.

Thanks, I'm out of the contract in two years if I want to leave, but I just don't know how rates will go. Decisions on how long to fix for are hard as they seem to constantly have went down in the last few years but they could also go back up.

Rackstar

Dublingirl80 wrote: »

Hi, I'm wondering how often banks usually change their rates? My fixed rate is almost up with bank of Ireland but their rates seem to be the worst out there. I've received the 2 percent lump sum also which I have to pay back if I switch so also wondering has anyone else done this and whether they charge you the full amount? Anyone any idea how often banks change their rates? Really hoping bank of Ireland improve theirs as even AIB rates are now below 3 percent. Anyone aware of a time of year changes tend to happen or is it just unpredictable?

I believe they can no longer claw back the cash back offers

Samuel T. Cogley

Personally I think they've only one way to go, but plenty disagree. I locked in at just under 3% for 10 years, frankly I don't see a huge amount of competition for Irish banks at the prime end, sub prime - high interest maybe. It's near impossible to repossess in this country so I don't see a big German et al bank coming over with great rates trying to get share in our tiny, unpredictable, dysfunctional market.

dubrov

Dublingirl80 wrote:

I've received the 2 percent lump sum also which I have to pay back if I switch

No you won't. It's against EU law to lock people in with special up front offers.

Contact them in writing to confirm and you will see.

Earleybird

Dublingirl80 wrote: »

Hi, I'm wondering how often banks usually change their rates? My fixed rate is almost up with bank of Ireland but their rates seem to be the worst out there. I've received the 2 percent lump sum also which I have to pay back if I switch so also wondering has anyone else done this and whether they charge you the full amount? Anyone any idea how often banks change their rates? Really hoping bank of Ireland improve theirs as even AIB rates are now below 3 percent. Anyone aware of a time of year changes tend to happen or is it just unpredictable?

The banks aren't able to request repayment of the 2%, so don't be concerned about that. Call them to verify if you want to confirm. Might be an idea to look elsewhere for a switch.

In terms of rate changes frequency, that's very much on a needs basis, so adhocly basically, as each bank makes changes to fit their targets.

Boi fixed rates aren't bad to be fair in Irish market terms.

listermint

Augeo wrote: »

Boi fixed rates aren't bad to be fair in Irish market terms.

Aren't they the most expensive of all the traditional banks.

Earleybird

Samuel T. Cogley wrote: »

Personally I think they've only one way to go, but plenty disagree. I locked in at just under 3% for 10 years, frankly I don't see a huge amount of competition for Irish banks at the prime end, sub prime - high interest maybe. It's near impossible to repossess in this country so I don't see a big German et al bank coming over with great rates trying to get share in our tiny, unpredictable, dysfunctional market.

3% for 10 years is about as good as you'll see in my opinion as well, but my tendency would be to take advantage of the cashback in the short term. The 3% 10 year deals won't go away in the near future and rates are unlikely to go north in the next 12 months.

Dublingirl80

Do you mean that you don't have to pay them back in order to switch mortgage? I've been with them for 3 years but they said the minimum was 5 for the cash back offer. Mine was the one before they offered the extra one percent if you stay five years. Do you know if this is anywhere online if it is the case?

Rackstar wrote: »

I believe they can no longer claw back the cash back offers

Sierra Oscar

Dublingirl80 wrote: »

Do you mean that you don't have to pay them back in order to switch mortgage? I've been with them for 3 years but they said the minimum was 5 for the cash back offer. Mine was the one before they offered the extra one percent if you stay five years. Do you know if this is anywhere online if it is the case?

It's been illegal for them to clawback the cash back offers since 2016 when the EU Mortgage Credit Directive was signed into law. You could argue that it might even date back to 2014 when the Government first accepted the directive.

I know a couple that have made a tidy sum changing their mortgage multiple times over the last few years and getting cash back offers every time they've changed. I'm surprised more people haven't been doing this and even more surprised that the banks are still offering them considering they can't clawback the money. They must be hoping people can't be bothered to go through the process of changing on multiple occasions.

listermint

listermint wrote: »

Aren't they the most expensive of all the traditional banks.

Their fixed rates are not.

Dublingirl80

I hadn't seen the ten year rate. I could be tempted by this but as ulster bank have one as low as 2.6 I was tempted to switch over. All this information has been very useful as I was told when I signed up that I'd have to pay back the cash sum if I switched within 5 years. That was in 2015 so the changes would have happened after. Thank you everyone. This gives me more options when my fixed rate is up. I'm wary of sticking with a bank that isn't competitive with their rates but for 10 years the 3 percent may be an option.

Samuel T. Cogley wrote: »

Personally I think they've only one way to go, but plenty disagree. I locked in at just under 3% for 10 years, frankly I don't see a huge amount of competition for Irish banks at the prime end, sub prime - high interest maybe. It's near impossible to repossess in this country so I don't see a big German et al bank coming over with great rates trying to get share in our tiny, unpredictable, dysfunctional market.

Dublingirl80

They've definitely improved since I signed up but it seems like all the others have lower ones and the .2 percent etc makes a big difference. At least they've all went down, even Northern Ireland have much better rates than here.

Augeo wrote: »

Boi fixed rates aren't bad to be fair in Irish market terms.

Q&A

Currently in the process of switching to Ulster having drawn down with EBS six months ago. I'm taking the 2% and running. I asked EBS at drawdown about the claw back and they had no problems pointing out that they couldn't chase me for it even if they wanted to. Most banks work on the idea rust is such an arduous process people will just not bother.

Am switching for rate purposes this time but there is a a part of me saying I should go for the cashback again

As for Ulster Bank 4 year 2.6% versus 10 years with BOI/KBC I think it depends on circumstances and how aggressive you plan on repaying. Ulster have a head turning rate but they also allow overpayments of 10% of the BALANCE. That allows for some aggressive overpayment. Whereas the the other banks allow 10% overpayment of your REPAYMENT. So in other words if you're overpaying the long term cost is probably lower with Ulster. However, if you're just paying the minium locking in for longer (albeit at a littler higher rate) probably works out cheaper in the long run.

Mugs game to try and predict rates other than to say they will be higher in the future. Go with whichever is likely to be cheaper in the long run

aloooof

We're FTB's with a likely ~90% LTV. My understanding is that BOI offer 3.5% for 10 years and 3% for 5 years fixed? I'd be interested in locking in a 10 year fixed of 3% if it was available, but I'm assuming this is for a lower LTV? Possibly below 80%?

Mantis Toboggan

Are there any better fixed rate mortgages that the bank of Ireland 5 Yr fixed @3% plus the 3% cashback?
I'm tempted to go with them as I also qualify for the 2k bonus.

aloooof

aloooof wrote: »

We're FTB's with a likely ~90% LTV. My understanding is that BOI offer 3.5% for 10 years and 3% for 5 years fixed? I'd be interested in locking in a 10 year fixed of 3% if it was available, but I'm assuming this is for a lower LTV? Possibly below 80%?

BOI don't offer (well they don't advertise) 3% fixed beyond 5 years currently.

Dublingirl80

Sorry yes somebody mentioned ten year fixed at 3 percent but it must be a different bank or have changed. I'm
Very tempted by ulster bank for the low rates but it does seem like hassle switching also. I'm also wondering what happens in the time it takes to switch, prob about 6 months, do you need to be on a variable rate while the whole process takes place? thats interesting, I think when out of fixed rate I can also pay a small lump sum off my mortgage so that's also something I could do.

Augeo wrote: »

BOI don't offer (well they don't advertise) 3% fixed beyond 5 years currently.

Irish_rat

Samuel T. Cogley wrote: »

Personally I think they've only one way to go, but plenty disagree. I locked in at just under 3% for 10 years, frankly I don't see a huge amount of competition for Irish banks at the prime end, sub prime - high interest maybe. It's near impossible to repossess in this country so I don't see a big German et al bank coming over with great rates trying to get share in our tiny, unpredictable, dysfunctional market.

Great rate, I'm on 3.65 at the minute which is way too high, it will be up by October next year but I have a feeling the ECB rate will have increased by then

dubrov

Irish_rat wrote: »

Great rate, I'm on 3.65 at the minute which is way too high, it will be up by October next year but I have a feeling the ECB rate will have increased by then

Why wait until October?
Chances are you can break now with no breakage fee. Just ring your bank.

Cyrus

Dublingirl80 wrote: »

Sorry yes somebody mentioned ten year fixed at 3 percent but it must be a different bank or have changed. I'm
Very tempted by ulster bank for the low rates but it does seem like hassle switching also. I'm also wondering what happens in the time it takes to switch, prob about 6 months, do you need to be on a variable rate while the whole process takes place? thats interesting, I think when out of fixed rate I can also pay a small lump sum off my mortgage so that's also something I could do.

It takes weeks to switch and it’s about 2 hours ‘work’ and you don’t need to be out of a fixed rate to pay off a lump sum , there may not be a penalty or you may be allowed pay a certain amount off without penalty you need to check

Spider Rico

Approved for switch to BOI 5 year 3%, plus cashback....from PTSB 4.2% variable currently. It makes such a difference!

Consider to Set your payment to what it was at 4.2%.... that'll make the biggest difference long-term

Spider Rico

Augeo wrote: »

Consider to Set your payment to what it was at 4.2%.... that'll make the biggest difference long-term

Only have the option to fix for 5 years at ptsb at 4.2% so still don’t see a reason to stay for that. Though fully expect interest rates to have gone up a lot by the time I shop around again in 5 years time ðŸ™

Irish_rat

dubrov wrote: »

Why wait until October?
Chances are you can break now with no breakage fee. Just ring your bank.

But I'm fixed for another year? I suppose I could check

mugsymugsy

Irish_rat wrote: »

But I'm fixed for another year? I suppose I could check

I was 2 years into a 5 year fix and changed for no fee (except for valuation which costs 150 I think). Saving over 110 a month which we are now overpaying - madness not to check and do the sums.

dubrov

Irish_rat wrote: »

But I'm fixed for another year? I suppose I could check

You can break a fixed rate for a breakage fee.
The breakage fee is mostly based on the banks rate of funding at the time you took out the loan to their current rate of funding. It does not matter what their current fixed rate is.

The cost of funding for Irish banks has decreased a lot over the last few years so I suspect there is little/no breakage fee for most people.

iluvfatfrogs

dubrov wrote: »

You can break a fixed rate for a breakage fee.
The breakage fee is mostly based on the banks rate of funding at the time you took out the loan to their current rate of funding. It does not matter what their current fixed rate is.

The cost of funding for Irish banks has decreased a lot over the last few years so I suspect there is little/no breakage fee for most people.

I have said before in diifferent thread, AIB are charging me over €1,500 for breaking a 3 year fixed term with 16 months left.

I am going to ask again once I get under 12 months.

Spider Rico

Spider Rico wrote: »

Only have the option to fix for 5 years at ptsb at 4.2% so still don’t see a reason to stay for that. Though fully expect interest rates to have gone up a lot by the time I shop around again in 5 years time ðŸ™

Apologies ......... what I mean is.

Let's say your current mortgage is €1000/month.
move to BOI and it's now €890/month as the interest rate is lower.

I was suggesting that you consider making your payment with BOI what it currently is, so you are overpaying a tad as well as benefitting from the lower rate.

when the time comes to shop around again you'll be better off

Mantis Toboggan

Augeo wrote: »

Apologies ......... what I mean is.

Let's say your current mortgage is €1000/month.
move to BOI and it's now €890/month as the interest rate is lower.

I was suggesting that you consider making your payment with BOI what it currently is, so you are overpaying a tad as well as benefitting from the lower rate.

when the time comes to shop around again you'll be better off

You can only overpay by 10% on a fixed rate mortgage.

Tyson Fury

Tyson Fury wrote: »

You can only overpay by 10% on a fixed rate mortgage.

You can agree a monthly payment that includes an agreed over payment when moving to the fixed rate. You can then overpay up to 10% of that agreed amount going forward if it tickle your fancy

Spider Rico

Tyson Fury wrote: »

Augeo wrote: »

Apologies ......... what I mean is.

Let's say your current mortgage is €1000/month.
move to BOI and it's now €890/month as the interest rate is lower.

I was suggesting that you consider making your payment with BOI what it currently is, so you are overpaying a tad as well as benefitting from the lower rate.

when the time comes to shop around again you'll be better off

You can only overpay by 10% on a fixed rate mortgage.

Ah yes. We are keeping the payments the same and reducing term by 4 years

Irish_rat

dubrov wrote: »

You can break a fixed rate for a breakage fee.
The breakage fee is mostly based on the banks rate of funding at the time you took out the loan to their current rate of funding. It does not matter what their current fixed rate is.

The cost of funding for Irish banks has decreased a lot over the last few years so I suspect there is little/no breakage fee for most people.

Thanks I'll definitely check it out with them.

poolfandar

Irish_rat wrote: »

Thanks I'll definitely check it out with them.

Just broke out of a 7 year fixed with Ulster Bank ( 5 years left ) and went on a 5 year fixed (3.7% vs 2.95%). They Initially wanted €3000 but ended up being 0 in line with the new European Central Bank directive!

Dublingirl80

That's interesting about fixed rates. Part of me would be reluctant to sign one for too long but it's great if they're not charging. I was told it would depend on the day the change goes through and so I'd have to take a risk and break out of it not knowing the charge. I think I may call again. I wish the banks would just be more in line with each other, switching is just expensive and a hassle though I suppose with ulster bank offering legal fees it's not really.

zl1whqvjs75cdy

Is there much legal leg work involved? Or hammer it all off to the solicitor and let them at it?

Cyrus

Dublingirl80 wrote: »

switching is just expensive and a hassle though I suppose with ulster bank offering legal fees it's not really.

it really isnt and most cover the legal fees