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LTV <50% Mortgage 1% less on a mortgage

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  • 19-08-2011 10:33am
    #1
    gar32
    Registered Users Posts: 1,024 ✭✭✭


    Hi all, I am trying to get the reduced rate on my mortage as it at 48K with property selling for about 100k. I have read that new business will at BOI & AIB give a 1% reduction for these loans.

    After asking BOI who I have my mortgage with for this rate I was told its only for new business. Should I change to AIB & get the 1% discount with them? I know it will cost about €800 for paper work etc. I would want a loan of 40K as have some savings.

    Would BOI give me that rate if I have an offer from AIB?

    Thank you :)


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    #2
    Victor
    Registered Users Posts: 78,399 ✭✭✭✭Victor


    AIB might not have the money to loan you.


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    #3
    gar32
    Registered Users Posts: 1,024 ✭✭✭gar32


    AIB have your tax money to loan me. So thank you :)


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    #4
    Raskolnikov
    Registered Users Posts: 10,148 ✭✭✭✭Raskolnikov


    Victor wrote: »
    AIB might not have the money to loan you.
    I don't buy that. There's no bother getting a mortgage from the likes of AIB or BOI.


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    #5
    variety
    Registered Users Posts: 152 ✭✭variety


    Permanent TSB actually have the cheapest fixed rates on the market (but they're only available to those with 50% LTV or less). So try them.

    But remember, it's not all about the equity. You need to have an income to show repayment ability above a Lender's standard variable rate (stressed at between 2% and 3%, depending on the Lender).


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    #6
    gar32
    Registered Users Posts: 1,024 ✭✭✭gar32


    variety wrote: »
    Permanent TSB actually have the cheapest fixed rates on the market (but they're only available to those with 50% LTV or less). So try them.

    But remember, it's not all about the equity. You need to have an income to show repayment ability above a Lender's standard variable rate (stressed at between 2% and 3%, depending on the Lender).

    Thank you,

    That a great idea. My wife who is working has her current acount with them. Mind you she has a job in a consturction company so maybe I need to think this one over. I am out of work now but hoping to start soon in a place. I know I have to wait 6months before I could get a loan.

    Seems BOI will have me for a few months yet.

    Thank you :)


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    #7
    smcgiff
    Closed Accounts Posts: 5,943 ✭✭✭smcgiff


    If you have savings and your mortgage is variable you should consider paying your savings into your mortgage anyway.

    You're most likely paying more interest on your mortgage than the net of tax interest you're earning on your savings.


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    #8
    Anyone
    Registered Users Posts: 3,376 ✭✭✭Anyone


    gar32 wrote: »
    AIB have your tax money to loan me. So thank you :)


    Most if not all the money gone into banks has been used to bulk up capital reserves and bad debt provisions. It cant and wont be lent.


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    #9
    gar32
    Registered Users Posts: 1,024 ✭✭✭gar32


    Anyone wrote: »
    Most if not all the money gone into banks has been used to bulk up capital reserves and bad debt provisions. It cant and wont be lent.

    Thats not what the banks are saying. Any way if you really want to see how the banks are going read Blank of Ireland :)


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    #10
    mrgaa1
    Closed Accounts Posts: 759 ✭✭✭mrgaa1


    its a joke that this is allowed to happen. The banks are there to provide services to the people who own it. For far too long the government has kept quiet about it. I'm going to dig a small hole in my house - get a safe - and withdraw all my money and put it in there.


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    #11
    The_Conductor
    Moderators, Society & Culture Moderators Posts: 32,285 Mod ✭✭✭✭The_Conductor


    BOI are 100% certainly *not* going to give to you a 1% reduction on a variable rate because you're under 50% LTV (though it would be a very interesting exercise trying to shake it out of them).

    They have written to all variable rate customers in the last week advising of a .5% rate increase from the first of September- and their chief executive is on record advising that all customers can expect more of the same.

    Keep in mind- for all intents and purposes- BOI are the only Irish financial institution who have managed to escape majority state control, however the cost of this is that they have to make a reasonable return for their investors- along with servicing their loans, whereas AIB etc have no such gun held to their heads.......

    If you're currently with AIB- talk to them, but its extremely unlikely in the current climate that BOI will match or better any rate that AIB is able to offer.......


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    #12
    StillWaters
    Closed Accounts Posts: 1,799 ✭✭✭StillWaters


    Getting or switching a mortgage these days is so much hassle that it may not really be worth it for a mortgage of €40k.

    I wouldn't throw your savings at the mortgage tbh, with only one income coming in, you may need access to cash for lots of unexpected expenditure,


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