masterboy123 wrote: » We have mortgage approval for a year to a max value we can afford. However we would be taking out 2/3rd of max value. The bank didn't highlight the APR rate or if its fixed or variable. They told us to come back when we have found a property. We are hoping to get variable mortgage, in that case: 1. is it possible to pay lumpsumps of few grands every now and then, to reduce the total interest rate? At present total interest rate is in the region is 65,000e. We were hoping if we pay 10,000 at after 5 years, would it bring down 65,000e? 2. And also if mortgage is for 25 years, can we finish off in 20 years without any excessive penalty? Overall, I have read people prefer variable rate over fixed rate currently, correct me if I am wrong.
VW 1 wrote: » If you're in a position where you know you will be overpaying regularly ie. monthly or annually, go for the variable. It'll be a slightly higher rate compared to a fix. If you're going to go with paying off once every three or five years, you'll get a lower rate and obviously fixed payments without being affected by interest rates for the period you've fixed for. At that point you can pay your lump sum off when you transition from the fixed to the variable. If you aren't on a fixed rate after 20 years, you can pay the balance without penalty. Just to make sure you are aware, you can fix for a period, go variable for a period, back to fix etc. Nothing is set in stone apart from the length of the period you may choose to fix for.
masterboy123 wrote: » Thank you so much. Another tricky Q if anyone has the answer please. Given HTB covers 5%, for mortgage upto 70%, say I pay extra 10% lump sum after 2 years, will I be breaching HTB scheme?
GingerLily wrote: » Your LTV will fall below 70% regardless of you paying a lump sum if your original LTV is 70%, so revenue won't mind you paying back early. You do have to live there for 5 years though nor they'll look to claw back a proportion of the tax relief. There's a pdf on their site with more information. The help to buy to thread might be more useful for you if you have various questions about the scheme.
Q&A wrote: » What bank are you going with? Most banks allow some form of overpayment before a break fee is incurred. There are also EU rules governing how break fees are calculated. In very simple terms of you fix now and interest rates go up you should not incur a break fee. In this situation you can pay back a bit or all of what is fixed. There is a difference between mortgage duration and fixed rate period. The longest fixed rate on offer from commercial mortgage provider is 10 years.
Grumpypants wrote: » You won't fix for the full term of the mortgage, just a few years. I've fixed for 4 years at 2.6% the saving was €140 a month plus it's some stability, then after that i get to choose to fix again or go variable or move bank. Generally they will let you pay a lump sum once a year. But if not, just save it and pay it off after the fixed period. To be honest very few banks will refuse your money.
masterboy123 wrote: » I am with AIB. What's the break fee like? Say it's 20 years mortgage, but I pay off everything by 15 years. In this case, will I be able to get house documents, etc. at end of 15 years?
masterboy123 wrote: » How come you paid less for getting a Fixed term mortgage and managed to save 140 a month? Usually a Fixed interest rate is higher, than variable rate. AIB : Fixed is 3.20; Variable 2.95 at present.
donkeyoaty0099 wrote: » My variable was 3.15 and new fixed is 2.65. Switched bank though.
Grumpypants wrote: » Ulster bank have a 2.6% fixed for 4 years rate. I was on 3.9 i think. Payments went from 1090 to 950. Think KBC have a 2.5% fixed rate too.
masterboy123 wrote: » Kbc got fixed rate for 1 year only. I think afterwards their rate may go high.
donkeyoaty0099 wrote: » I fixed for 5 years with kbc at 2.65 %
