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How to decide on the best mortgage provider?

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  • 10-03-2004 11:23am
    #1
    Spocker
    Moderators Posts: 6,860 ✭✭✭


    My partner and I are currently in the process of purchasing a house and would be grateful for any assistance people may be able to give in choosing a mortgage provider.

    Le me make some generalisations first:

    Our combined salaries allow us to borrow 92% of the value of the property and we will have no problems in meeting the repayments. At this stage (one more to go after lunch today) every mortgage provider we have been to, both bank and building society have said "Yes, that will be no problem, how soon would you like the money", after us producing P60's, salary slips, etc etc. The term will be for 25 years.

    So really all is boils down to who can offer me the best rates (but how do I know which one is best?). We're both first time buyers and I assume not in the same type of negotation position as someone who is moving their mortgage (I read the articles in the Rip-Off forum).

    Is there an easy way to determine which is the best provider..? I'm going to rule out any favouritisim that either of us may receive from our respective banks and just keep the field level.

    So far I had just been basing my decision process on the information sheet the lender would give you at the end of the get-to-know-you session but after having a chat with my sister (who's on her second house at this stage) she says the the cost/€1000 value is the only one worth considering - a la Best Buys part in the Business section of the Sunday Times - in which case the AIB is the only one to go for.....

    Any comments/help would be appreciated...

    If this post is in the wrong forum please feel free to move.


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    #2
    Andrew Duffy
    Closed Accounts Posts: 540 ✭✭✭Andrew Duffy


    Try here:

    http://www.askaboutmoney.com/clubman/BestBuys.htm

    and also have a look at the various forums on the site:

    http://www.askaboutmoney.com


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    #3
    Victor
    Registered Users Posts: 78,387 ✭✭✭✭Victor


    I would seriously consider the options of fixed -v- variable. What are your options for switching in future and what fees will be involved?

    Consider what fees are involved.


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    #4
    Spocker
    Moderators Posts: 6,860 ✭✭✭Spocker


    Thanks guys - the askaboutmoney site has a lot of good info.

    Just to keep you up to date, I've rexamined the proposal of each lender on a cost per 1000 basis, which I have to say does give a better indication of how much each months payments will cost.

    To help I drew up a little spreadhsheet and worked out the figures for the life of the loan rather than the "enticing" first year offers - I can see that the entirety of the loan has to be taken into consideration.

    I haven't confirmed it fully yet, but we'll probably go with the EBS, based on the new rates that they are bringing in at the end of March. They have a good 1st Year Fixed New Business Rate: 2.65% (cost/1000 €4.56/25 years) and a decent Standard Variable of 3.25% (cost/1000 €4.87). At the end of the day it matters not a wit for two reasons:

    1. At some stage I have to choose at least one provider to get an Approval from them so I can actually sign the contract
    2. The funds won't be drawn down until early 2005 and who's to say what the rates will be then...?

    Thanks again


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