!!!Cheap mortages!!!

ibuprofen · 30-06-2009 1:20pm #1

Just read this in the paper . Everyone's biggest expense is their mortage and over the course of the loan a quarter of a percent can represent tens of thousand of savings.

Found it incredible that interest rates vary from BOI AIB & EBS 2.65%-2.7% to Halifax's 4.45%. You would be paying a full 64.81-66.6 % extra on your mortage interest repayments with Halifax
and an extra 42-49 % on the Ulster bank mortage interest rate

Quote and link below...Hope this brightens up someones day...

''He said the best variable rate for a first-time buyer at the moment is around 2.65%-2.7% from Bank of Ireland, AIB and EBS.

"Compare that with 3.75%-3.95% at Ulster Bank and 4.45% at Halifax. PTSB is just off the pace from the other domestics at about 3%-3.15%, which no doubt reflects its desire to shrink its loan book slightly (but not too much) given funding constraints," he said. ''

http://www.irishexaminer.com/business/british-banks-hamstrung-in-ireland-95219.html#ixzz0Juix3RHR&D

Gumbo · 30-06-2009 1:33pm

glad i took the tracker in 2006 when i got my Halifax mortgage, now at 2.25%....but for how long

LouOB · 30-06-2009 2:24pm

ECB tracker 0.75%
FTW

Best bet is fixed rate of 2.48% from EBS 2 years
5yrs 3.15% - I think
If you get better snap it up but I dont think variable it a good option, currently.

Zynks · 30-06-2009 2:49pm

kceire wrote: »

glad i took the tracker in 2006 when i got my Halifax mortgage, now at 2.25%....but for how long

If you stay put I doubt they can change it. I am on ECB+0.6% with AIB and have a letter from them saying it will hold for the life of the loan. They can't get rid of me even if they beg.

LouOB · 30-06-2009 2:55pm

Zynks wrote: »

If you stay put I doubt they can change it. I am on ECB+0.6% with AIB and have a letter from them saying it will hold for the life of the loan. They can't get rid of me even if they beg.

I think he meant until ECB rate goes up

Samsung · 30-06-2009 3:33pm

LouOB wrote: »

I think he meant until ECB rate goes up

Yes, it has to be.

LouOB · 30-06-2009 3:37pm

There is talk of rate going up in the next monthly meeting
If not over the summer
Not surprised really

Dades · 30-06-2009 4:12pm

kceire wrote: »

glad i took the tracker in 2006 when i got my Halifax mortgage, now at 2.25%....but for how long

The last letter I got from Halifax (re my tracker) stated I'm being charged at 2% ! They're not getting rid of me!

Their fixed rates are crap though.

dubrov · 30-06-2009 6:08pm

LouOB wrote: »

There is talk of rate going up in the next monthly meeting
If not over the summer
Not surprised really

A bit off topic but I don't know where you heard that. There is pretty much zero chance that rates will increas over this summer and very unlikely until well into next year

There was a lot of talk a couple of months ago about a fast recovery followed by hyper-inflation. That seems to have died down quite a bit and it loooks like we are in for a very long slow recovery.

If anything there is pressure on the ECB to drop rates as deflation looms. Chances are rates will be at 1% for at least 6 months and probably for the next year

dotsman · 30-06-2009 7:57pm

dubrov wrote: »

A bit off topic but I don't know where you heard that. There is pretty much zero chance that rates will increas over this summer and very unlikely until well into next year

There was a lot of talk a couple of months ago about a fast recovery followed by hyper-inflation. That seems to have died down quite a bit and it loooks like we are in for a very long slow recovery.

If anything there is pressure on the ECB to drop rates as deflation looms. Chances are rates will be at 1% for at least 6 months and probably for the next year

This is correct. I haven't heard a single economist/banker predict that rates will rise this summer. A few of the most cautious think that there may be a rise towards the end of the year, but most are in agreement that rates will remain as is until at least next year. Beyond that, anyone is guessing.

With regards the interest rates amongst banks, I've been saying this for a long time now. The current situation is showing up the men from the mice. All the foreign/small banks (the previous darlings of the media) are now completely screwing their customers, while the big Irish banks are remaining competitive. Only 3 years ago, every single newspaper would have been encouraging all their readers to abandon the "rip-off" big Irish banks and do their business with Halifax/NIB/Ulster/PTSB etc. (not to mention the sub-prime lenders) who were offering free banking (nothing in life is free), introductory offers, 100% mortgages etc.

Now, we have a huge amount of people, deep in negative equity stuck paying whatever these banks decide (being in negative equity, they can't move their mortgage to any of the competitors). For many, the introductory offer has now expired, or for others, the fixed interest rate is over and they are at the mercy of a bank that doesn't couldn't care less. In the case of the foreign banks, they are mostly shut up for new business (many will have exited the Irish market over the next year or 2) and don't care what this government (or any consumer group etc) think, say or do.

Don't get me wrong. Unlike most, I don't take these things personally. I don't hate these banks or anything. These banks are merely doing what they are supposed to do (and what they were allowed do via poor regulation, and encouraged to do by our media/public)

marknoonan1974 · 30-06-2009 8:38pm

Anybody getting a mortgage at the moment needs their head examined. Anyway, the lads on QuoteClub update their rates every week.

http://www.quoteclub.ie/mortgagerates.php

marknoonan1974 · 30-06-2009 8:45pm

I bet these cheap rates are for 60% mortgages or something daft like that anyway.

Leprechaun77 · 30-06-2009 9:08pm

The cheaper the rate, the more difficult it will be to obtain approval. The margin that banks make on loans will inevitably be linked to the risk they are taking on, i.e. the lower the margin, the more of a 'brick' you need to be to get it. The banks seem to be advertising that they are 'open for business', but all the anecdotal evidence would suggest otherwise, and credit is very difficult to obtain at the moment.

dotsman · 30-06-2009 9:56pm

marknoonan1974 wrote: »

I bet these cheap rates are for 60% mortgages or something daft like that anyway.

Nope, the rates quoted above are for the highest LTV's. There are even lower rates (circa 2.25%) for the lower LTV's

Leprechaun77 wrote: »

The cheaper the rate, the more difficult it will be to obtain approval. The margin that banks make on loans will inevitably be linked to the risk they are taking on, i.e. the lower the margin, the more of a 'brick' you need to be to get it.

Also nope! The rates are based on LTV. A person who get's approved for the higher rates will equally get approved for the lower rates if their LTV is lower.

Leprechaun77 wrote: »

The banks seem to be advertising that they are 'open for business', but all the anecdotal evidence would suggest otherwise, and credit is very difficult to obtain at the moment.

That's very much the bank-bashing media's spin on things. The truth is actually the other way around. The lending criteria is pretty much the same as it was. The problem is that now, there's a lot less people matching that same criteria. ie, a person earning circa 50K in a secure job today will get approved the same as a person earning circa 50K 3 years ago. The problem is that, today, many people are earning less and many are in employment that can no longer be regarded as "secure". For example, many public servants are getting approved as they were before. On the other hand, very few private sector workers (even/especially those who, a few years ago, were seen as perfectly safe as Civil Engineers/Solicitors/Architects etc) can safely say that their jobs are secure.

Think about it. Of course the banks are open for business. They need all the business they can get. But they can only take on those who, given the data available on the day, are safe customers. And the data available today contains a lot of uncertainties for many:(

marknoonan1974 · 30-06-2009 10:08pm

Just checked the LTV's and there is a load of 95% ones. I still reckon prices have a good bit further south to go before committing to a mortgage. Re: the EBS product, its says 2.88% for a 95% LTV, that aint bad at all!!!!!

marknoonan1974 · 01-07-2009 2:13pm

Does anybody know if any of the banks offer better rates to switch an existing mortgage to them? I remember during the peak of the boom they were all going mad trying to get people to switch?

cruizer22b · 01-07-2009 8:10pm

marknoonan1974 wrote: »

Does anybody know if any of the banks offer better rates to switch an existing mortgage to them? I remember during the peak of the boom they were all going mad trying to get people to switch?

Id like to know that also, Im with Ulster Bank but was considering talking to AIB or BOI, seems there rates may be better. Although my tracker is quite low.

Soarer · 01-07-2009 9:20pm

cruizer22b wrote: »

Id like to know that also, Im with Ulster Bank but was considering talking to AIB or BOI, seems there rates may be better. Although my tracker is quite low.

STAY PUT!

You'll never get a tracker again. Even though AIB and BOI are low now, technically they can put their rates up by 5% in the morning. They won't like, but my point is they set their own variable rates. With the tracker, you're singing from the ECB hymn sheet (as you know).

dubrov · 01-07-2009 9:23pm

It all depends what mortgage rate you are on and the loan to value of your house. If you are on a tracker the answer is most likely no as these were given out at the height of the boom when spreads were very low

cruizer22b · 01-07-2009 9:53pm

Yeah im on the tracker but at 3.1% with ulster bank. Took it out in 2004.

dotsman · 01-07-2009 9:56pm

cruizer22b wrote: »

Yeah im on the tracker but at 3.1% with ulster bank. Took it out in 2004.

Is that 3.1% or ECB + 3.1%. Both seem really high (I'm on ECB + 0.75% - Total of 1.75%). Have UB being passing on the rate cuts from the ECB? If they haven't, then you may as well be on a Standard variable with them.

Soarer · 02-07-2009 12:05pm

marknoonan1974 wrote: »

Anybody getting a mortgage at the moment needs their head examined.

So without getting a mortgage, how do you suggest we buy a new house?

veryangryman · 02-07-2009 1:30pm

Soarer wrote: »

So without getting a mortgage, how do you suggest we buy a new house?

He said dont get one NOW. Wait, perhaps another year when market will proper bottom out. People being given notice in the past few months will finish up by then and there will be less money in the economy

Net result: Prices HAVE to come down to keep the market going

As a buyer at the peak of the boom, i do urge people to err on the side of caution. Things will slowly pick up (to an extent) again, but it will take time

Waiting another year will save you at least ~20K in my opinion. Youll hardly pay more than 5K in rent in that time.

And when you DO buy, haggle like crap. If they say the house is 200K, offer 150K and work your way up. Dont be afraid to walk out of the deal. Its a buyers market where cash is king and FOR THE LOVE OF GOD dont listen to an estate agent when they tell you that now is the time to buy. Remember their vested interests

I hope this is of help. Wishing you luck my friend :pac:

The Lone Ranger · 02-07-2009 1:47pm

i agree with veryangryman, we aint seen the bottom of the market by a long shot. just from my recent inquires i found the prices on daft where way above what venders where willing to take. estate agents are trying to keep 'asking prices' up while offering houses for alot less when you speak to them in one case asking price on daft was 40k higher than what they said on the viewing.
wait it out if you can

marknoonan1974 · 02-07-2009 1:57pm

House prices will continue to fall as unemployment rises, also consider wages are still being reduced all over the place.

Just as predicting the top of the market is difficult, predicting the bottom is also difficult. Dont listen to estate agents or banks, keep an eye on the pubs and shops and see how busy they are, use you own eyes and dont believe the spin of the vested interests.

nouveau_4.0 · 02-07-2009 2:42pm

LouOB wrote: »

ECB tracker 0.75%
FTW

Best bet is fixed rate of 2.48% from EBS 2 years
5yrs 3.15% - I think
If you get better snap it up but I dont think variable it a good option, currently.

Can you post a link please. I'm on the EBS site now and seeing 5yrs fixed for 4.35%. Big difference from 3.15%

Soarer · 02-07-2009 3:03pm

veryangryman wrote: »

He said dont get one NOW. Wait, perhaps another year when market will proper bottom out. People being given notice in the past few months will finish up by then and there will be less money in the economy

Net result: Prices HAVE to come down to keep the market going

As a buyer at the peak of the boom, i do urge people to err on the side of caution. Things will slowly pick up (to an extent) again, but it will take time

Waiting another year will save you at least ~20K in my opinion. Youll hardly pay more than 5K in rent in that time.

And when you DO buy, haggle like crap. If they say the house is 200K, offer 150K and work your way up. Dont be afraid to walk out of the deal. Its a buyers market where cash is king and FOR THE LOVE OF GOD dont listen to an estate agent when they tell you that now is the time to buy. Remember their vested interests

I hope this is of help. Wishing you luck my friend :pac:

The Lone Ranger wrote: »

i agree with veryangryman, we aint seen the bottom of the market by a long shot. just from my recent inquires i found the prices on daft where way above what venders where willing to take. estate agents are trying to keep 'asking prices' up while offering houses for alot less when you speak to them in one case asking price on daft was 40k higher than what they said on the viewing.
wait it out if you can

marknoonan1974 wrote: »

House prices will continue to fall as unemployment rises, also consider wages are still being reduced all over the place.

Just as predicting the top of the market is difficult, predicting the bottom is also difficult. Dont listen to estate agents or banks, keep an eye on the pubs and shops and see how busy they are, use you own eyes and dont believe the spin of the vested interests.

Thanks for all the advice above guys. Only problem is, as you can see from my sig, we're trying to sell in the current market too!

If we wait much longer, we'll be in negative equity (we're not yet luckily).

So for us, it's really is a case of now-or-never.

This is miles off topic at this stage. Apologies.

The Lone Ranger · 02-07-2009 5:43pm

try the house swap web site, people in your situation looking to move. hope it works for you, but for a lucky mistake i would be in the same boat:eek:

ibuprofen · 14-07-2009 9:52am

Just saw this .......Pretty important for anyone with BOSI , Halifax mortages...

http://www.examiner.ie/business/sngbmhaukf/

Have a quote here...

Lloyds, which owns Halifax, is understood to have got instruction from the British Treasury to cease lending in Ireland and repatriate assets.

http://www.examiner.ie/business/sngbmhaukf/#ixzz0LDpAUNUv&D

However an industry source said Halifax has been "effectively out of the market for some time and has stated as much with its excessive borrowing costs of 7% and greater".

ibuprofen · 14-07-2009 10:00am

cruizer22b wrote: »

Id like to know that also, Im with Ulster Bank but was considering talking to AIB or BOI, seems there rates may be better. Although my tracker is quite low.

Not sure of the tracker rates but it's as easy as walking into a bank or maybe even a quick call to a broker...you'd be mad not to check

ibuprofen · 14-07-2009 10:02am

cruizer22b wrote: »

Yeah im on the tracker but at 3.1% with ulster bank. Took it out in 2004.

You'll easily beat that. Just check online.

http://www.aib.ie/personal/mortgages/Owner-Occupier-Mortgage

ibuprofen · 14-07-2009 10:10am

veryangryman wrote: »

He said dont get one NOW. Wait, perhaps another year when market will proper bottom out. People being given notice in the past few months will finish up by then and there will be less money in the economy

Net result: Prices HAVE to come down to keep the market going

As a buyer at the peak of the boom, i do urge people to err on the side of caution. Things will slowly pick up (to an extent) again, but it will take time

Waiting another year will save you at least ~20K in my opinion. Youll hardly pay more than 5K in rent in that time.

And when you DO buy, haggle like crap. If they say the house is 200K, offer 150K and work your way up. Dont be afraid to walk out of the deal. Its a buyers market where cash is king and FOR THE LOVE OF GOD dont listen to an estate agent when they tell you that now is the time to buy. Remember their vested interests

I hope this is of help. Wishing you luck my friend :pac:

True the estate agent ,along with the ECB setting our interest rates were responsible for pushing the house prices up. I'd say the house prices will come to a level and probably go up a little. I'd say next year as the world economy recovers along with our exports....

The trick is to get the prices at the point where they've reached their lowest and just before they bounce back a little, I agree with your prediction of about a year and prices should change first in Dublin so that's something to watch out for if you're buying outside Dublin......

Best of luck to everyone thinking of buying.... . Anyone who buys at the bottom of the price range will have made the best economic decision of their life....

Ogham · 14-07-2009 10:19am

marknoonan1974 wrote: »

Just checked the LTV's and there is a load of 95% ones. I still reckon prices have a good bit further south to go before committing to a mortgage. Re: the EBS product, its says 2.88% for a 95% LTV, that aint bad at all!!!!!

Where are you seeing these rates for 95% LTV ? As far as I can see EBS max loan is 92%

Soarer · 14-07-2009 11:52am

Ogham wrote: »

Where are you seeing these rates for 95% LTV ? As far as I can see EBS max loan is 92%

We were in with EBS last week asking about mortgages, and were told that they no longer do the 95% LTV's.

gazzer · 14-07-2009 11:57am

Myself and my partner applied to AIB for a mortgage. We earn 92000 p.a between us and having savings of 45,000 (38,000 from the sale of our house and 7,000 saved over the last year). Have loans totaling 20,000 which we pay at 740 euro a month. We were looking for a max mortgage of 225,000. On top of this we had a house for 6 years which we sold last year, never missed a payment on this or on any of our loans.

The underwriters came back and said they would not approve us as we didnt have sufficient savings.

Soarer · 14-07-2009 12:15pm

gazzer wrote: »

Myself and my partner applied to AIB for a mortgage. We earn 92000 p.a between us and having savings of 45,000 (38,000 from the sale of our house and 7,000 saved over the last year). Have loans totaling 20,000 which we pay at 740 euro a month. We were looking for a max mortgage of 225,000. On top of this we had a house for 6 years which we sold last year, never missed a payment on this or on any of our loans.

The underwriters came back and said they would not approve us as we didnt have sufficient savings.

That's poor form.

Surely the fact that you've made all your repayments, and managed to save €7k, should be enough for them. IMHO, if you've never missed repayments, that should be akin to a saving record.

AIB are known to be "cherry-picking" applications at the minute. But, unless you're not telling us/them something, I can't see why they'd refuse you.

gazzer · 14-07-2009 12:24pm

Soarer wrote: »

That's poor form.

Surely the fact that you've made all your repayments, and managed to save €7k, should be enough for them. IMHO, if you've never missed repayments, that should be akin to a saving record.

AIB are known to be "cherry-picking" applications at the minute. But, unless you're not telling us/them something, I can't see why they'd refuse you.

No, not leaving anything out. We have never missed any loan payments. Our mortgage was 1200 a month (after TRS). Our rent is 800 a month at the moment. The mortgage we are looking for would cost 1000 a month over 23 years. We could have saved more money over the last year but we rented an unfurnished house so have spent around 4 grand over the last year buying furniture for when we do move. We have stored the furniture in one of the spare rooms. Also I spent 3000 on an evening course with the IPA.

marknoonan1974 · 14-07-2009 12:57pm

Ogham wrote: »

Where are you seeing these rates for 95% LTV ? As far as I can see EBS max loan is 92%

Sorry, that was a typo.....:(

ibuprofen · 14-07-2009 12:58pm

ibuprofen wrote: »

Just saw this .......Pretty important for anyone with BOSI , Halifax mortages...

http://www.examiner.ie/business/sngbmhaukf/

Have a quote here...

Lloyds, which owns Halifax, is understood to have got instruction from the British Treasury to cease lending in Ireland and repatriate assets.

http://www.examiner.ie/business/sngbmhaukf/#ixzz0LDpAUNUv&D

However an industry source said Halifax has been "effectively out of the market for some time and has stated as much with its excessive borrowing costs of 7% and greater".

It's in the indo as well. they've confirmed it and given the month of september as the closing date........Arn't Ulster bank owned by the same group....

''THE Halifax Bank in Ireland is set to close its retail division following an instruction from the UK Treasury to repatriate assets back to the UK.
The 'Sunday Tribune' reported that Bank of Scotland Ireland is preparing to shut the Halifax starting in September following an instruction from the UK Treasury to cease lending here and repatriate £20bn of the £35bn in Irish assets.''

http://www.independent.ie/business/irish/halifax-set-to-close-retail-division-here-after-order-by--uk-treasury-1818866.html

marknoonan1974 · 14-07-2009 1:01pm

Ogham wrote: »

Where are you seeing these rates for 95% LTV ? As far as I can see EBS max loan is 92%

I did see a few 95% on the quoteclub site i posted above, click on the "loan to value" in the heading to sort them, ulster bank have 2 products at 95%. I'd say actually getting that might be difficult though....

ibuprofen · 14-07-2009 1:06pm

http://www.mortgages.ie/index.cfm/spKey/home.mortgage_rates.html?orderby=product&orderdir=asc&product=&lender=

This is a decent link here . You can choose a product and a lender or all lenders....

marknoonan1974 · 14-07-2009 1:29pm

ibuprofen wrote: »

http://www.mortgages.ie/index.cfm/spKey/home.mortgage_rates.html?orderby=product&orderdir=asc&product=&lender=

This is a decent link here . You can choose a product and a lender or all lenders....

Cant sort by APR or LTV

Useful info though.

The Lone Ranger · 14-07-2009 2:09pm

gazzer wrote: »

Myself and my partner applied to AIB for a mortgage. We earn 92000 p.a between us and having savings of 45,000 (38,000 from the sale of our house and 7,000 saved over the last year). Have loans totaling 20,000 which we pay at 740 euro a month. We were looking for a max mortgage of 225,000. On top of this we had a house for 6 years which we sold last year, never missed a payment on this or on any of our loans.

The underwriters came back and said they would not approve us as we didnt have sufficient savings.

i think it may be your oustanding load that caused you the problem. ask them if you clear your loan with your saving would they have a different position.
they dropped their original morgage quote to me by 50k when i told them i had a car loan even though my saving where more than double the loan amount.

that said i heard on news today this whole 'green shoots' thing was way off for early 2010 and its now looking like mid 2011.
house prices WILL drop further and remembering prices will over shot in bubble burst sitituation, like in the boom, i'll be holding on to my cash for a good while yet.

ibuprofen · 14-07-2009 2:22pm

marknoonan1974 wrote: »

Cant sort by APR or LTV

Useful info though.

Personally I'd use the site as a starting point. Then ring the relevant banks.......

The APR is listed on the far right column.......I think the LTV is incl. in the listings as >50%<80% (greater than 50 % and lower than 80%) or >80% (greater than 80%)

Here's a link on the same site to see how much above 80 % can be borrowed (usually to a max of 92%) http://www.mortgages.ie/index.cfm/spKey/moving_house.how_much_can_i_borrow_.html

Here's a stamp duty calculator.
http://www.mortgages.ie/index.cfm/spKey/moving_house.stamp_duty_calculator.html

marknoonan1974 · 14-07-2009 3:37pm

ibuprofen wrote: »

Personally I'd use the site as a starting point. Then ring the relevant banks.......

The APR is listed on the far right column.......I think the LTV is incl. in the listings as >50%<80% (greater than 50 % and lower than 80%) or >80% (greater than 80%)

Here's a link on the same site to see how much above 80 % can be borrowed (usually to a max of 92%) http://www.mortgages.ie/index.cfm/spKey/moving_house.how_much_can_i_borrow_.html

Here's a stamp duty calculator.
http://www.mortgages.ie/index.cfm/spKey/moving_house.stamp_duty_calculator.html

I presume they are brokers?

Oral Slang · 14-07-2009 11:21pm

The Lone Ranger wrote: »

i think it may be your oustanding load that caused you the problem. ask them if you clear your loan with your saving would they have a different position.
they dropped their original morgage quote to me by 50k when i told them i had a car loan even though my saving where more than double the loan amount.

Yeah, we were the same when we bought our 2nd house. I had a load of €2k or something ridiculous on my car with the credit union & my savings were more than what I owed. We were buying a house worth over €400k at the time (god knows what it is worth now ) & had equity of €120k from our 1st house, but they wouldn't approve a mortgage until I cleared my loan.

dotsman · 14-07-2009 11:45pm

gazzer wrote: »

Myself and my partner applied to AIB for a mortgage. We earn 92000 p.a between us and having savings of 45,000 (38,000 from the sale of our house and 7,000 saved over the last year). Have loans totaling 20,000 which we pay at 740 euro a month. We were looking for a max mortgage of 225,000. On top of this we had a house for 6 years which we sold last year, never missed a payment on this or on any of our loans.

The underwriters came back and said they would not approve us as we didnt have sufficient savings.

The Lone Ranger wrote: »

i think it may be your oustanding load that caused you the problem. ask them if you clear your loan with your saving would they have a different position.
they dropped their original morgage quote to me by 50k when i told them i had a car loan even though my saving where more than double the loan amount.

that said i heard on news today this whole 'green shoots' thing was way off for early 2010 and its now looking like mid 2011.
house prices WILL drop further and remembering prices will over shot in bubble burst sitituation, like in the boom, i'll be holding on to my cash for a good while yet.

Oral Slang wrote: »

Yeah, we were the same when we bought our 2nd house. I had a load of €2k or something ridiculous on my car with the credit union & my savings were more than what I owed. We were buying a house worth over €400k at the time (god knows what it is worth now ) & had equity of €120k from our 1st house, but they wouldn't approve a mortgage until I cleared my loan.

Yup, it is the loan that is the problem. The most important figure for a lender is the DSR (Debt Service Ratio). This percentage is the percentage of your monthly (or any other frequency) salary that is used to service a loan.

So, for example, if your monthly income is €3,000 and the highest DSR the lender is willing to lend at is 35%, then the most you can use to pay off all your loans is €1,050. If you have an outstanding car loan of €300 per month, then the most your mortgage repayments (after stress test of, say, 2.5% extra), is €750 per month.

gazzer · 15-07-2009 11:19am

dotsman wrote: »

Yup, it is the loan that is the problem. The most important figure for a lender is the DSR (Debt Service Ratio). This percentage is the percentage of your monthly (or any other frequency) salary that is used to service a loan.

So, for example, if your monthly income is €3,000 and the highest DSR the lender is willing to lend at is 35%, then the most you can use to pay off all your loans is €1,050. If you have an outstanding car loan of €300 per month, then the most your mortgage repayments (after stress test of, say, 2.5% extra), is €750 per month.

Thats interesting. Well in our case we have a net monthly income of €5028 and our loan repayments each month are €801 which would leave €4227 a month. The mortgage we were looking for would cost €1026 a month which is around 24.5% of our remaing disposable income so we would fall well within the guidelines I would have thought. AIB's DSR must be quite low.

ibuprofen · 16-07-2009 2:55pm

marknoonan1974 wrote: »

I presume they are brokers?

Say so ......No doubt......They're making money off it somehow.....

Found another link for mortage rates here..........

http://www.moneyguideireland.com/mortgages

Strangely enough there'e no more tracker mortages available in Ireland according to this......;) hang onto it if you've got one....:)

ibuprofen · 17-07-2009 3:40pm

This is a great article and spells out the savings that can be made......

There really is a crazy amount of money spent on your mortage interst as shown below.........you could end up almost halving your repayments....:)...nice to have that extra money now....

Really shows what a massive difference the interest percentage on your mortage can make.....

Not only for first time buyers

which has been the big topic of discussion on this thread

but as is shown below transferring your mortage could save you a lot of money .......
Not many houses around Dublin for €250,000 as shown in the example below.......

Quote below

''HOMEOWNERS could be paying as much as €835 extra a month by not shopping around for the best mortgage rate.

The lowest mortgage rate on the market is the 2.25% standard variable rate from AIB while the highest is 7.75% on afive-year fixed deal from Bank of Scotland (Ireland), according to the Irish Mortgage Corporation.

Monthly repayments on a 30-year €250,000 mortgage at 2.25% are €955.62 per month while a person on a rate of 7.75% on the same terms would be €1,791.03.''

Read more: http://www.irishexaminer.com/business/homeowners-may-be-paying-835-extra-per-month-on-mortgage-96568.html#ixzz0LWjrKxXd

has anyone swopped yet....

!!!Cheap mortages!!!

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