dwayneshintzy wrote: » Plan for us is to buy in summer 2021 if we can, but won't be moving back to Ireland until 2024. We'd plan to let it out in the meantime......I thought we'd only qualify for an investor mortgage, meaning 5% interest rate and more like 50% deposit (instead of 35%). Told those guys on MyMortgages but they've told me to get an application in and see (application fee of 500 euro).
awec wrote: » You paid 500 euro for some crowd to advise you on a mortgage?! That's mad. Go directly to banks, or go to a broker, both are free. You will have to get a buy-to-let mortgage, as you won't be using it as your primary residence.
thewheel2.0 wrote: » When your initial fixed rate period expires, are the fixed options the bank offers the same as the rates available to new customers? Or is it a case that the rates for people "locked in" to a mortgage are worse? Trying to figure out why some people go KBC and Ulster Bank, yes their fixed rate is better over two years, however, ICS and AIB have a lower cost of credit over the full mortgage term. Is 35 year "cost of credit" a red herring cause people prioirtise the rate they can get today and if they see a better one when their fixed period expires they will switch?
guyfawkes5 wrote: » Banks may offer the same fixed rates for new and existing customers, but they don't have to. It's common but you should check with the bank first. The projections you get in your mortgage contract of your full mortgage term are more to present the best information as we know it from this point in time rather than being a red herring. Although you are correct that to get the best value for yourself, you should be switching as much as possible to prioritise better interest rates during the lifetime of the mortgage.
thewheel2.0 wrote: » Thanks @guyfawkes5, @awec and @Creamy Goodness. I was looking at AIB Green 5 year fixed at 2.45%, they have the 2nd best 35 year cost of credit in the country with only ICS beating them (due to better variable rate). But maybe I need to look at Ulster Bank, they offer 2 years at 2.3% and will pay €1500 in legal fees. So now my understanding is if I were to switch after two years, some banks offer to pay legal fees for switching. Or I could fix with Ulster again if they are still compeditive. Only disadvantage I can see is that the only Ulster Bank branch nearby is in the heart of Limerick city where AIB has various branches in suburbs and a nearby village. A small thing I suppose if theres long term money to be saved.
mimimcmc wrote: » Do ye know which banks you can get a mortgage with as a FTB without banking with them? Currently AIP with AIB as we both bank with them. Have applied to KBC but they said we would have to bank with them which turns me off..
tomgaa wrote: » Just wondering why there isn't more with KBC with their 2.3% mortgage rates? i got in touch with a broker in Mortgages.ie at it was KBC that they said gave the best deal, even considering that Ulster back were offering 2.2% fixed, but they bump up to 3%APRC after 5 years fixed, which long term works out paying back more than KBC. Whats everyones thoughts?
thewheel2.0 wrote: » Is it also fair to say though, that if the pandemic left lasting damage, in two years employment wise we may not be in a position to switch. Therefore trapping us with Ulster Bank and potentially stuck on their high variable rate (if they would not offer compeditive fixed rates). 5 year fixed with AIB on a close enough rate of 2.45% might suit us in that case. Is that a risk I should consider or am I over thinking this?
guyfawkes5 wrote: » To be honest you're a bit confusing to read in some parts there. The only thing I'll say is that the '3% cashback' banks give the remaining 1% cashback on year 5, which relies on staying with their uncompetitive rates for that long and is never, ever worth it in the extra interest you'll pay. You'll always be better off switching as soon as possible to another bank.
Dean91 wrote: » Hi myself and parnter are saving for a mortgage to build . but I am thinking of going back to college part time as i just want a better career , is it possible to get a mortgage if I go back to college part time . We are both on 30k , would are salary be enough for a mortgage?
Gael23 wrote: » AIB seem prepared to lend me slightly more than UB but at a higher rate so that’s a decision I have to make I suppose
Creamy Goodness wrote: » Only real problem I see - and will depend on the location - is 220k won’t build you a house and doubly so if you have to purchase the land too.
lomb wrote: » Not really. 3% over 5 years is .6% a year so the 2.9- .6 is 2.3% which is actually very competitive. The only downside is that it doesn't enable you to be overpay the loan other than a max of 10% per month. The solution is to take out 1 or 2 year fixed and pay chunks off in between fix periods. I took out a loan for 25 years which is ridiculous I would want to repay this in a maximum of 20 and a minimum of 15. I took out the 25 to provide flexibility. Overpaying 10% a month reduces the term from 25 to 20 years. The upside is if you bank with boi it's alot easier and timesaving and also having a mortgage with a mainline bank is safer. Theres less chance of vulture funds, bad resets where the interest rate is jacked up, mortgage deeds going missing etc, also many people like the 2% up front for furniture or legal fees etc.
guyfawkes5 wrote: » EBS allow 10% of the principal to be overpayed per year on fixed rates, not per month as BoI do. You should certainly overpay as much as you can, but you should also switch as much as you can too. With regards to cashback, the banks can't claw back what they give you so it makes no sense to stay with their worse longer than the absolute minimum.
lomb wrote: » That's very generous of ebsyou could repay it in less than 8 or 9 years if you want and can. With regard to switching I'm happy with boi. 2.9 fixed for 2 years with 3% cashback over 5 years . That's grand it's 2.3% per year average and they didn't load me as I was at 90% ltv. Yes your right after 5 years it's a slightly different story. I'm guessing rates will be lower then though due to competition, time and rates converging with European banks.
guyfawkes5 wrote: » I'm saying that if you left BoI or EBS after one year (or six months, or even a day, there's no minimum period you have to stay with them), then the 'worked out' interest after cashback would be far less than 2.3% and you could pick up a lower actual interest rate with someone else. The only thing that depends on is the entrance criteria other banks have for picking you up, as some have minimum periods that you have to have with be with your previous mortgage provider, but this will usually be no longer than a year and sometimes even less.
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