5 Year Fixed rate mortgage

mollyban2

I am just coming to the end of a five year fixed term, and I want to enter a new 5 year fixed rate. I got a letter from Bank of Ireland to inform me that the rate for a 5 year fixed rate is 5%. I went to their website and there I was informed that the 5 year fixed rate for an existing customer (I presume that means me since 1993) is 4.3% and the fixed rate for a customer transferring from one institution to BoI is 4%.

My question is this.....can I negotiate to get the 4% rate or whatever the equivilant lowest 5 year term rate is on the day I am negotiating? any advice on my choice of wording when I am discussing this?

All this bearing in mind if I renege on my mortgage under the new deal, I will have to pay off just a portion and the debt will be forgiven in x number of years with no black mark against me and just start afresh. I'm thankfully able to pay my mortgage but just want a fair deal

ravima

you can always ask.

try other institutions as well. Irish Nationwide were advertising on radio today seeking transfers of mortgages.

if you had info that another bank would take you, then BOI will more than likely match the deal.

BMD

BOI interest rates on their website are misleading...4.0% for new customers is actually 4.64% (see http://www.moneyguideireland.com/mortgages/5-year-fixed-rates), so its probably around 5% for their quoted rate of 4.3%

another stunt by a bank....they add in the variable rate that you will pay for the next 20 years into the APR rate...at the moment this is 3.35% hence why 4.64% comes down to 4.0%...sharks!!

dotsman

BMD wrote: »

another stunt by a bank....

I love the conspiracy theories. It's a regulatory requirement (and for very good reason). If you have a problem with it, take it up with regulator, various consumer agencies, the government and the EU, as all would have to be involved if you were to get it changed.

BMD

There is nothing conspiracy theory about it....rate is quoted as 4.0%...its actually 4.64%....work it out dotsman (SAPQ!!!)

BMD

And by the way...'its a regulated environment'.....wake up....it hasn't been regulated thats why we are in the mess we are in......have you seen the news in the last few years...they are still persisting with their lies

dotsman

BMD wrote: »

There is nothing conspiracy theory about it....rate is quoted as 4.0%...its actually 4.64%....work it out dotsman (SAPQ!!!)

It's called APR. It's a fairly basic concept in banking. The following should explain it.

With regards Regulation, the Systemic side of the house might have been lacking over the past decade. That doesn't mean there wasn't regulation or legal requirements on banks.

BMD

'might' have been lacking....no wonder the country is the way it is....when people can't see what is front of their noses....there is no might about it and if regulations are applied in one sector of the banking system what makes you think that they will be applied in any other sector......no meaningful change has happened yet to suggest otherwise

you can dress the rates up using APR to make them look better but why not quote both rates so the consumer can see what they are getting?

Answer me this....what fixed rate will the customer pay for the first 5 years? 4.0% or 4.64%

If you can answer that you 'might', just 'might' see what the problem is!!!

SAPQ Indeed

dotsman

BMD wrote: »

'might' have been lacking....no wonder the country is the way it is....when people can't see what is front of their noses....there is no might about it and if regulations are applied in one sector of the banking system what makes you think that they will be applied in any other sector......no meaningful change has happened yet to suggest otherwise

you can dress the rates up using APR to make them look better but why not quote both rates so the consumer can see what they are getting?

Answer me this....what fixed rate will the customer pay for the first 5 years? 4.0% or 4.64%

If you can answer that you 'might', just 'might' see what the problem is!!!

SAPQ Indeed

You obviously have issues, but they are not for here. This forum is helping people with banking queries. I'd try Personal Issues, Ranting & Raving and/or Conspiracy Theories.

With regards the OP, the rate of 5% being quoted is what they would pay for the 5 years, after which, it would revert to the standard variable of the day.

With regards negotiating down the price, there is no harm in trying. However, as with all forms of negotiation, it certainly helps to have the upper hand. If you have a low LTV and have found another bank willing to offer a mortgage cheaper, or have high value business accounts with the bank etc then you certainly have a strong position. If you are in negative equity and have nothing to bargain with, then I'd doubt the bank will move on it.

BMD

Which is exactly my point.....they will be paying 5% for five years...not the 4.3% advertised on the BOI website....its a pity it took you so long to kop on but at least you have seen the light

I don't think you should be on a forum helping people with banking queries as you spent two posts misleading the OP before admitting that the rate they were offering was 5% (not 4.3%)

take yourself off to the clowns forum