Mortgage advice needed...?

drunkmonkey

Is 5.6% an ok intrest rate on a mortage at the moment, The loan to value is less than 30%, could I get a better rate, is it the wrong time to be borrowing money, the amount is 200k...

tks

Jet Black

Is that a fixed rate? Whos that with?

drunkmonkey

heymcflyx wrote: »

Is that a fixed rate? Whos that with?

No it's Variable with AIB

PoolDude

I'd suggest a Tracker mortgage at .75% above the ECb if you can get it.

kaiser sauze

PoolDude wrote: »

I'd suggest a Tracker mortgage at .75% above the ECb if you can get it.

Although this will probably be a little higher than your 5.6% rate, I agree.

Variable rates are an inadvisable lottery at the moment.

drunkmonkey

PoolDude wrote: »

I'd suggest a Tracker mortgage at .75% above the ECb if you can get it.

where would you get one of them, that would be around 4% no?

CDfm

You have a lot of equity there so getting finance should not be a problem whatsoever

you need to find and independent specialist mortgage broker someone sophisticated who can get you a capped rate and knows who to go to

would be careful of the arrangement fees /legal fees

also- would check out penalties -early repayment clauses

I am not a broker but I have come accross only a few irish brokers who offfer this kind of service

Thoie

Using the LTV mortgage calculator on www.nib.ie with the following settings, I get a tracker rate of 5.28%

Value of property: 700k
Amount to borrow: 200k
Term: 20 years

Given that the ECB rate has just dropped a few hours ago, I'd imagine that the rate might be slightly lower than that.

Most of the banks have online calculators - spend some time going to each one with your exact figures and seeing what they come out with for an initial comparison.

Ogham

If yor LTV is 30% (i.e the house value is over 600k) - you could get tracker rates as low as ecb plus 0.9% from NIB (i.e currently 5.15%) With todays announced ECB rate cut to 3.75% - this tracker rate will soon be 4.65%. It would be worth moving. Halifax also have a slightly higher tracker - and they will pay towards legal fees for switching.

drunkmonkey

I wonder why AIB aren't offering or telling me about the tracker rate, are there certain "critera" you must meet to qualify?

Why dosen't everyone go for a tracker? A possible 4.65% rate seems very appealing...

CDfm

you need an IFA to do it for you on a fee basis

for them you are a profit centre why would they tell you they make less money

drunkmonkey

CDfm wrote: »

you need an IFA to do it for you on a fee basis

for them you are a profit centre why would they tell you they make less money

I presume the fee is fixed not a precentage of the mortage, so I need to talk to a finanical advisor to arrange it? Would the guys in Blue Sky be considered advisors, there just down the road....

As for the bank not telling me, that will backfire on them:)

Ogham

drunkmonkey wrote: »

I wonder why AIB aren't offering or telling me about the tracker rate, are there certain "critera" you must meet to qualify?

Why dosen't everyone go for a tracker? A possible 4.65% rate seems very appealing...

AIB have a tracker rate of ECB plus 1% for your LTV - but maybe it's for new customers only? That will be 4.75% in a week or 2. If they don't let you go on that rate - threaten to move.

drunkmonkey

Ogham wrote: »

AIB have a tracker rate of ECB plus 1% for your LTV - but maybe it's for new customers only? That will be 4.75% in a week or 2. If they don't let you go on that rate - threaten to move.

Thanks for the Tip, bank manager is going to have to do some fancy explaining tomorrow to convince me I don't need a tracker mortage...

What are the pitfalls of a tracker mortage? I understand that if the ecb rate goes through the roof it will hurt but are there any other things I should be aware of with a Tracker?

kaiser sauze

drunkmonkey wrote: »

Thanks for the Tip, bank manager is going to have to do some fancy explaining tomorrow to convince me I don't need a tracker mortage...

What are the pitfalls of a tracker mortage? I understand that if the ecb rate goes through the roof it will hurt but are there any other things I should be aware of with a Tracker?

Check the small print (or ask categorically) that the tracker product does not allow the bank to change their mind and refer to another rate they choose, such as the LIBOR.

Check for escape clauses such as this.

Ogham

All but Halifax have now withdrawn new tracker mortgages - so you may have to go with the variable. Halifax are still offering money towards legal fees if you switch - but that offer will probably end soon.