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Mortgages - Who would you go with and why?

  • 01-07-2019 11:46pm
    #1
    Registered Users Posts: 2,994 ✭✭✭


    There’s alot of very different offers out there and regardless of what i’d go for, choosing one bank over another feels like a gamble. You can see what you’re getting up front but it’s hard to predict the future.
    I can understand fixing for a term for more stability or maybe gambling for a better rate by going variable.

    At the moment i’m looking at AIB’s 5 year fixed vs BOI. AIB is cheaper but BOI give 3% cashback. Boi would be better for me over 5 years as long as I switch afterwards but I know that none of them will take me in 5 years if the market goes bad in the mean time.

    So really i’m wondering what people are deciding and why? I know some people just go with whoever they bank with, but not giving it thought could be very costly for them (or they could be lucky and it may end better than what they chose if they thought about it 😊 )


Comments

  • Registered Users Posts: 661 ✭✭✭work


    Well done thinking it over. They are all vultures so avoid but if you need their facility consider the policy and not the lender. Also ideally you should be able to change provider with minimal penalties.


  • Registered Users Posts: 782 ✭✭✭Dolbhad


    Some banks gave me exemptions to policy, some didn’t. I chose the bank that would lend me the most.


  • Registered Users Posts: 3,205 ✭✭✭cruizer101


    You could potentially get the cashback offer and then change to AIB for better rate after a while. The fees for breaking fixed rates these days are quite small.


  • Registered Users Posts: 339 ✭✭TPF2012


    Ulster bank have the best rates and are more flexible than other banks if you are upgrading and are going to rent out your first house. They will put the rent earned from that property along with your salary to allow a higher loan amount. AIB didn't allow this with me anyway.


  • Closed Accounts Posts: 4,121 ✭✭✭amcalester


    I went fixed for 5 years with BOI, the rate was slightly higher than UB but with the 3% cash back it worked out cheaper over 5 years.

    I ignored the follow on rate when making my decision as who knows what it'll be in 5 years and I'd be fairly confident of being able to switch then anyway.

    The product is so heavily regulated that my only real concern when deciding was price, whoever was cheapest got my business.


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  • Registered Users Posts: 10,684 ✭✭✭✭Samuel T. Cogley


    It may also depend on who will give you the amount you need. In our case we were pretty much forced to go with KBC but it turned out handy enough as we fixed for ten years at below 3%.


  • Banned (with Prison Access) Posts: 4,691 ✭✭✭4ensic15


    It also depends on the property. Some banks are wary of particular kinds of properties or locations. Some won't lend on 1 bed apartments for example.


  • Registered Users Posts: 1,889 ✭✭✭SozBbz


    I have my first mortgage wtih BOI. its now fixed at 2.8% until Q2 2021. Original rate was something silly like 3.6% back in 2015. LTV is less than 50%.

    Sale Agreed on another property and looking like we will go with KBC - variety of factors at play but they're offering a good rate for a 5 year fix and while theres no cashback, their follow on rates look good. They commit to putting us on their lowest variable rate where as most banks say stardard variable rate. Taking the loan on the basis that LTV is less than 60%, and in 5 years, with making payments as well as lump sums, I'd hope to get us sub 50% and be able to negotiate a good renewal.


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