Mortgage Discussion

Victor

Mortgages can also be discussed here on the Accommodation / Property board

ismynametoolong

With Bank of Scotland and getting an extension so went to the bank to release some additional funds and i cant believe the hassle we have to go through a complete remortgage using solicitors and searches etc at our expense . Have done some research and found that most ( i mean the ones from which i have enquired of ) dont have any difficulty with amending your mortgage and no need for a solicitor . So now considering switching to another lender . Any suggestions

is_that_so

I am with First Active and while they are not the cheapest, it was just a matter of signing a form, proof of income etc. and pay for a quick valuation. Equity was approved straight away . The only catch is the requirement to stay within 80% which might not suit you. Needless to say I have been back to the well a few times .

ismynametoolong

Whats really annoying us is that our property is old and in need some work which we intend to do on a gradual basis our mortgage at present is less than 20% of our homes value and the remortgage would only bring us up to 25% and we have to go through a complete remorgage same as if we were new customers so our logic is why not switch and then at least in the future we wont be restricted if we need more funding as we go forward .

nlgbbbblth

ismynametoolong wrote:

With Bank of Scotland and getting an extension so went to the bank to release some additional funds and i cant believe the hassle we have to go through a complete remortgage using solicitors and searches etc at our expense . Have done some research and found that most ( i mean the ones from which i have enquired of ) dont have any difficulty with amending your mortgage and no need for a solicitor . So now considering switching to another lender . Any suggestions

nlgbbbblth wrote:

its ironic that people flock to MBNA because they 'shake up the market' / 'introduce a bit of competition to those greedy banks' and then discover that these short-term sweeteners can be long term pain.

cheapest deal is not always the best.

substitute MBNA with Bank of Scotland. Same comments apply.

daveg

Prima finance have a special on their website:

Free legal fees for those looking to re-mortgage existing loans (minimum re-mortgage amount of €100,000). Re-mortgage to get a better rate, consolidate loans or free up equity in your home. This special offer will again save on average between €1,500 and €2,000 in legal fees for those availing of this service.

http://www.primafinance.ie/PrimaFinance/specialdeals.asp

Plankmonkey

daveg wrote:

Prima finance have a special on their website:

Free legal fees for those looking to re-mortgage existing loans (minimum re-mortgage amount of €100,000). Re-mortgage to get a better rate, consolidate loans or free up equity in your home. This special offer will again save on average between €1,500 and €2,000 in legal fees for those availing of this service.

http://www.primafinance.ie/PrimaFinance/specialdeals.asp

There are no restrictions on these offers (aside from the re-mortgage minimum) so the clients can decide in a few years that they want to re-mortgage or sell the property without fear of a legal fee penalty, unlike Ulster Bank and others

Does this mean that they do not deal with Ulster Bank or do Prima just foot the bill?

This is a big plus. I'm looking to remortgage to find a better rate and Ulster Bank were, until now, top of my list because of their very attractive rates and no legal fees. The catch of having to pay a €770 fee if you move your mortgage within 5 years was a bit off putting though.

There will still be a 0.1% stamp duty to pay.

dmeehan

we are in the process of switching to ebs, whcih are the cheapest in the market. they pay for solicitors fees and searches etc.

be warned: you may need to pay stamp duty of 0.1% if your borrowings are over €254,000!!

daveg

daveg wrote:

Free legal fees for those looking to re-mortgage existing loans (minimum re-mortgage amount of €100,000). Re-mortgage to get a better rate, consolidate loans or free up equity in your home. This special offer will again save on average between €1,500 and €2,000 in legal fees for those availing of this service.

Prima Finance should be told that no Solicitor is charging that to begin with, so how they propose that one can save it is a joke. For a mortgage or remortgage, most Solicitor will only charge a few hundred euros.

Padraig Mor

Deleted User wrote:

. For a mortgage or remortgage, most Solicitor will only charge a few hundred euros.

You're kidding right??!! My solicitor charged approx €1300 altogether for my mortgage (being 850 + outlay + VAT). He was by far the cheapest I found. Most people I know paid their solicitors over two grand for standard mortgage procedures.

TabulaRasa22

Padraig Mor wrote:

You're kidding right??!! My solicitor charged approx €1300 altogether for my mortgage (being 850 + outlay + VAT). He was by far the cheapest I found. Most people I know paid their solicitors over two grand for standard mortgage procedures.

At least, the going rate for some of these guys is 1%. As usual, the main winners are the lawyers. I knew I should have gone to law school.

Kersh

So who is best to go with???
Currently looking to borrow 320,000 nice detached house near Kells. How much am i looking at paying back per month, say over 35 years (I have seen 1160eu), but surely some institution can beat that.
Im also looking at getting hit with 3% stamp duty too (10,500eu), the thieves....

Am I eligible for 1st time buyers grant or is the house too big...

utopian

mr_c wrote:

Pay a visit to a2z mortgages
www.a2zmortgages.ie
They are a mortgage broker, you dont have to pay them and they will get ya the best deal going.

The best deal going, as long as it is from PTSB, IIB or Start (!).

MortgageBrbr

Best advise would be to shop around..........I've personnally dealt with clients who were paying approx 200 per month to much for their mortgage.........

Always seek independent financial advise........

You should always shop around for the most competitive life cover too... Eagle Star are currently offering the most competitive life cover.

Try FBD for home insurance

kingcalvin

I agree. Shop, shop, shop.

MickJon

In my opinion the best solution to get more infos about this is to contact with Guardian Financial Services,because they gave me really good help and people there can always find time for u and talk about ur prob.I think they have a website like www.gfa.ie or sth like this where u can find plenty of usefull infos and financial tips.

Yorky

For someone with savings of in excess of €50k (some of which may be needed in the next year) and a mortgage of €215k, would a tracker or offset mortgage be best?

Currently with UB (ECB+.85%, mortgage term of 29yrs) but NIB tracker seems to be cheaper at 3.6%. Is it worth switiching to this or an offset mortgage considering the switching costs?
Do NIB offer any help with switching?

Jenga

When looking for a mortgage - here are my top tips...

1. ALWAYS use a mortgage broker - they get you a better service and don't charge a penny. You also get more product choice and therefore a better deal.
2. ALWAYS choose a well known mortgage broker. Some of the smaller brokers work out of their houses or out of a small office and do not deal with all of the banks. They may not be dealing with the bank that would give you the best deal so you lose out! Go for one of the big names e.g. Simply Mortgages, Blue Sky Mortgages, IFG
3. ASK your solicitor what it's going to cost, then get another quote ... and another until you've got a fair price for what is a pretty small amount of work
4. MAKE SURE your mortgage broker has the full range of life assurance products so that you get a good deal on the mortgage protection cover. Some are tied to just one life company so that can end up costing you €€€. See point 2 above...

It's a jungle out there...:)

Victor

Jenga wrote:

1. ALWAYS use a mortgage broker - they get you a better service and don't charge a penny.

So how do brokers put food on the table?

Dutz

the broker is given .9% of the total loan with which the customer is borrowing. this is paid by the lender to the broker. thats how the put bread on the table!!:D

Paraic

Bear in mind the commission paid to the broker does not cost the client any money and it is paid by the lender to the broker.

It is the Brokers job to act in the best interest of his client and get his client the best deal available.

advertising must be paid for
beruthiel

Victor

Paraic wrote:

Bear in mind the commission paid to the broker does not cost the client any money and it is paid by the lender to the broker.

It is the Brokers job to act in the best interest of his client and get his client the best deal available.


Regards
Paraic@obrienfinlay.ie
Mortgage Broker
O'Brien Finlay
Baggot St
Dublin 4
Ph:6601033

Yes it does ultimately cost the client money. There is no free lunch. Can I copy this to the relevant authorities?

Paraic

Hi
How does it cost the client money to go through a broker?
The client dosen't pay any fee to the broker and if he was to go directly to the lender himself he wouldn't be saving any money.
The broker though will go through all the lenders in the market.
So is it not better to have a choice of all the lenders in the market than limiting yourself to one bank?

Regards

Paraic@obrienfinlay.ie

Victor

This person has a little story about mortgage brokers. http://www.ambrand.com/2006/03/03/how-to-deal-with-irish-mortgage-brokers/

Now, will a bank give a customer the same rate if they go through a broker?

misty floyd

should a mortgage broker inform his clients of offers that banks may give such as AIB's €2000 for FTB's? As well as getting various rates, should these things be pointed out also? Cheers

Paraic

Yes
The Mortgage Broker should point out all the various offers given by all the lenders for that clients circimstances. One client might prefer the €2,000 initially another client might prefer the more competitive rate over the long term. The client should be given all the information for them to decide. One thing to bear in mind as well though is that there are significant differences between the lenders on the amounts that they are willing to lend and some lenders for instance will take room rental income into account while other lenders won't. If the client goes directly to the bank he will get the same deal as going through a broker with that bank.

Regards
Paraic@obrienfinaly.ie

Sarah W

There has always been a lot of confusion and mistrust of why brokers offer the same rate for lenders as the lenders offer for 'direct' applications. Hopefully this will explain the process.

For a lender to attract a mortgage application they have to first get the client to want to approach them by way of marketing - for which there is a cost.

They then have to have a premises for the client to visit to discuss the application and complete the application - another cost.

The personnel to advise the clients have to be paid, trained, uniformed, etc - more costs.

With an application submitted via a broker all the upfront marketing and processing costs are born by the broker and the application goes straight to the underwriter hence the lender is able to pay the broker without affecting the lender's margin.

Sarah

www.rea.ie

vector

advertising must be paid for
beruthiel[/QUOTE]

I was just reading this thread and saw that beruthiel removed "advertising", however it still appears in a quotation

Eazy Mortgages

EDIT: Advertising must be paid for

Eazy Mortgages

Dutz wrote: »

the broker is given .9% of the total loan with which the customer is borrowing. this is paid by the lender to the broker. thats how the put bread on the table!!:D

Thats not true brokers can get as little as 0.5% or as much as 1.5%! Its true that it is paid for by the lender!

MortgageBroker

the single best bit of advice on anything to do with mortgages is do your homework, if you make at least some effort to become knowledgeable in the area of mortgages then you'll know the difference between good value and bad value.

the second thing: deal with a professional whom you are happy with, if this involves paying a fee but you trust them totally then the fee is worth it, if you don't trust the person you are dealing with then even a price tag of 'free' is too much. shop around, ask questions, the decision you are making is big so put in a relevant amount of effort.

TheUnicorn

Good morning,
I have one question to all mortgage brokers on this forum. What is the math / formula used for assessment of customers willing to get mortgage?
I assume we need following data:
1. Average Interest Rate (where to get it form to make sure it's always up-to-date?)
2. Mortgage value (ie. €250000)
3. Applicants salary (summary of salaries if more, ie. €6000)
4. Applicants expenses (montly expenditure ie. €2500)
5. Mortgage period
Having that information most websites I found provide some calculation saying:
"Your monthly repayments would be €YYYY and you have a chance of getting mortgage like that."
or
"Your monthly repayments are higher than required level of income, you suck, good bye."
I need to know the formula and limits you use for approving / refusing people who want the mortgage or personal loans. Thank you in advance for any help from your side,
TheUnicorn

MortgageBroker

Hi Unicorn,

Each lender has a Calculator and a Credit Scoring process, the calculator looks at numbers and hte credit scoring process assesses your credit worthiness, sometimes this just means having a clean ICB (irish credit bureau) sheet other times it has to do with having positive balances etc. but basically some combination of the two is what is used.

average interest rates at the moment are about 5.1%, there are much better and much worse rates available but if I was to look at an average across prime lending around that mark would be a 'median' amount.

there are plenty of sites that have up to date rates on it, but one that is not broker owned would be FinFacts.com and they have all the up to date irish lending rates

I think the answers you are looking for may be best and most comprehensively answered by a human rather than by the web, do you have a broker? if not why don't you look one up and as mentioned before get a feel for what they have to say and if you are happy with it. Not all brokers charge fees and in any case nobody in the industry charges for an exploratory call.

my personal view is that if i have a toothache i might look it up on the net but i still go to a dentist, i would advise you to find a financial advisor you are comfortable with and ask them these questions.

antog86

Is there any sign of the interest rates for mortgage repayments going down after the ECB cut its interest rates by 0.5%. I have not seen any savings yet......

MortgageBroker

the change in rates only kicks in during the following month so you wouldn't not have seen any change yet - are you on a tracker rate? if not then you might not see the full change anyway

banks are only starting to take october payments now - bank of scotland is the earlies with payment generally being made on the 20th of each month.

Heisenberg.

This post has been deleted.

franco25

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Benny122

Hi I am earning €27k a year and my partner is on a Social Welfare Scheme is there any institution that will take his earning into account for a mortgage?