Tracker, moving house

Darc19 wrote: »

Calculation has changed again.

Avant are now offering 2.25% 10 year fixed with current roll off rate of 2.5%

This is possiblity a better option.

To give an idea of cost, €300,000 over 20 years on LTV of 70% will cost €1553 per month. Fixed for 10 years.

I'm assuming 70% LTV and 20 years as if you have a tracker, you have had current mortgage for about 15 years, so a 20year term is probably the best option.

Finance Ireland have a 20 year fixed rate of 2.75% giving monthly payments of €1626 and never ever changing.

We’ve seen that alright. We may end up with ltv slighlyu over 70%, depends on what we get for the house vs purchase price, it’s around the 70 but might be higher so then the 2.25/2.75 etc.

We’ve talked to the broker, still slightly undecided but leaning even more at sticking to Tsb. We were torn between a 20 or 25 year loan, our current one is 20 and obviously 25 gives us lower monthly (we really don’t want to over stretch monthly and impact quality of life day to day). But we’ve realised that if we keep the tracker effectively half the mortgage would be 20 years as that’s what’s left on the tracker, and half at 25. And if we forgo cashback from Tsb which we don’t overly need, then we’d get their 4 year fixed 2,25. So for now the whole thing is 2.25.

We had hoped to be retiring in 20 years, so having half the mortgage gone then and the payments dropping in half for the last 5 years would be a good backup. At that stage we may even be able to use retirement lump
Sums to pay off the final 5 years.

If we go for Avant or refinance Ireland we’re looking at longer fixed, but also the full loan at 25 years and probably less chance of retiring at the 20 year mark.

I presume if we fix now for 4 years, and after that if there are better products or we’re in a better position to reduce our term we could then look at switching and moving off the tracker to a longer fixed at that stage?

Phishnet wrote: »

Hi Darc19,

We now have the highest mortgage interest rates in the Eurozone. The relatively slow rate of repossession probably saved a good proportion the 50,000 or more families who were overcharged on their mortgage payments due to the Banks unreasonably removing them from their Tracker Mortgages.

We all know that the slow rate of possession is a component part of the high mortgage lending rates we pay in this Country, but still does not account for the exceedingly high interest rates the banks charge! Other factors include that banks operating in Ireland are required to keep higher reserve capital ratios on each mortgage they lend out than their European counterparts. This is as a result of ECB requirements. The ECB found that Banks operating in Ireland lent recklessly, particularly to commercial borrowers. This is the price we, as Irish citizens, pay for the conduct of the banks. Let’s give a balanced factual view and not a view that is skewed from the bank’s perspective.

The higher capital requirement is an extra burden, but it is the strategic defaulters who pay not a cent of their mortgage that are costing millions.

There are huge protections for mortgage holders, so anyone with a genuine issue and pays something will always and should always be able to work things out.

But strategic defaulters number in excess of 25,000 mortgage holders (some estimates are over 40,000)

Remember a strategic defaulter is one that does not pay ANYTHING and does not engage and enjoys free living complements of variable and fixed rate mortgage holders.

Put the query on AAM.