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First Active Mortgage rate so high

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  • 17-04-2009 5:29pm
    #1
    IrishTonyO
    Registered Users Posts: 2,321 ✭✭✭


    I have a mortgage with First Active and the fixed term is about to expire however their variable rate is 4.2% where I can get 2.5% from others. Does anyone know why they are doing this to their customers? on 100,000 that is an extra E80 a month or almsot 15,000 over the term of the mortgage? Anyone know why they are forcing their customers away


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    #2
    3DataModem
    Registered Users Posts: 3,995 ✭✭✭3DataModem


    IrishTonyO wrote: »
    I have a mortgage with First Active and the fixed term is about to expire however their variable rate is 4.2% where I can get 2.5% from others. Does anyone know why they are doing this to their customers? on 100,000 that is an extra E80 a month or almsot 15,000 over the term of the mortgage? Anyone know why they are forcing their customers away

    Because they have estimated how many customers would leave, and feel 4.2% is the optimum rate from a profitability point of view.

    Because they know lots of people can't refinance with another bank due to negative equity, so are forced to stay.


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    #3
    adox
    Registered Users Posts: 19,017 ✭✭✭✭adox


    I`ve just moved from them to Halifax for that very reason, although my LTV is less than 50%.

    Move away from them if you can.


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    #4
    IrishTonyO
    Registered Users Posts: 2,321 ✭✭✭IrishTonyO


    Adox how much did it cost you moving, my ltv is also less than 50%


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    #5
    adox
    Registered Users Posts: 19,017 ✭✭✭✭adox


    IrishTonyO wrote: »
    Adox how much did it cost you moving, my ltv is also less than 50%

    It cost me nothing. Halifax will either pay €1000 towards your legal fees if using your own solicitor, or they will appoint a solicitors firm that they use(the option I took) and they cover that cost in full.

    I paid a valuation fee of €130 which was refunded by Halifax once I had drawn the money down, so basically it cost me nothing to switch.


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    #6
    IrishTonyO
    Registered Users Posts: 2,321 ✭✭✭IrishTonyO


    Cheers Adox thanks, reckon I'll give Halifax a call. When I called First Active the guy said their rates were out of a line and I could transfer and he even offered to give me the name of a solicitor to do it for me????


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    #7
    bobbbb
    Closed Accounts Posts: 507 ✭✭✭bobbbb


    Think of First Active as Rip-Off republic. Shop around :)


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    #8
    stepbar
    Closed Accounts Posts: 6,123 ✭✭✭stepbar


    First Active are owned by Ulster Bank who in turn are owned by RBS. It's no great suprise that they are trying to extract as much as possible from their loan book.


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