New reduced Mortgage rates?

Redgirl82

Ok sorry to be a bit vague. I was reading a news paper last week, Monday. I think it was Indo/Times and it mentioned about the Minister for Finance meeting with the banks to get them to reduce there rates further.

It mentioned he had met BOI and they would reduce to 3.5% and that he was meeting KBC next. It would be based on LTV <50%

Checking if anyone has heard anything about this? I can't find anything online.

I am in process of moving to KBC and just waiting for final sign off, might wait if there is reduced rates coming in pipeline.

Trish56

Redgirl 82,
KBC reduced their rates last week. Loan to value (ltv) now range from 3.45% for loan to value of 50% to 3.85% for ltv of 90%. If you open a current account with them they will offer a further 0.20% off these rates.

As far as I am aware BOI have not recently reduced their rates and both KBC and BOI standard Variable rate of 4.50% has still not reduced for existing customers who are unfortunate enough to be in negative equity.

Redgirl82

Trish56 wrote: »

Redgirl 82,
KBC reduced their rates last week. Loan to value (ltv) now range from 3.45% for loan to value of 50% to 3.85% for ltv of 90%. If you open a current account with them they will offer a further 0.20% off these rates.

As far as I am aware BOI have not recently reduced their rates and both KBC and BOI standard Variable rate of 4.50% has still not reduced for existing customers who are unfortunate enough to be in negative equity.

Sorry of course after I posted this I had quick look on KBC website and I seen the new rates....

Now if KBC would just get arse in gear and finalize my mortgage

Chris_5339762

Trish56 wrote: »

As far as I am aware BOI have not recently reduced their rates and both KBC and BOI standard Variable rate of 4.50% has still not reduced for existing customers who are unfortunate enough to be in negative equity.

...and also KBC won't let well paying (and overpaying) customers off the SVR of 4.5%. They can't switch to the new LTVs. KBC are having none of it.

Was waiting to see if Mr Noonans word with KBC was going to change this but it looks unlikely, so time to shell out some money to switch to PTSB and their nice little discounted MVR.

Redgirl82

Chris_5339762 wrote: »

...and also KBC won't let well paying (and overpaying) customers off the SVR of 4.5%. They can't switch to the new LTVs. KBC are having none of it.

Was waiting to see if Mr Noonans word with KBC was going to change this but it looks unlikely, so time to shell out some money to switch to PTSB and their nice little discounted MVR.

Correct me if I am wrong but the MVR is only for year 1 and then it jumps back up to 3.7%

You would be better to wait for Bank of Ireland who according to article have agreed to drop to 3.5%

Chris_5339762

Thanks. I'll give it a week or two maybe, and then see.

I have my regular banking with PTSB so that makes things easier in general, but I've no loyalty whatsoever and will go to whoever is cheapest! Switching incentives (legal fees etc) do matter though as I've probably got only 5 years left on this mortgage.

Redgirl82

Chris_5339762 wrote: »

Thanks. I'll give it a week or two maybe, and then see.

I have my regular banking with PTSB so that makes things easier in general, but I've no loyalty whatsoever and will go to whoever is cheapest! Switching incentives (legal fees etc) do matter though as I've probably got only 5 years left on this mortgage.

Same as yourself, banking with PTSB because it was free, KBC are offering lower rate if I move over current account so switching....whoever offers lower I go with them

Trish56

be careful to ask that if you initially choose a 1 year fixed will this revert to a loan to value rate or to their standard variable rate which is 4.50%. Get this is writing or on your loan offer as their is a huge difference.

Chris_5339762

Yes. Do NOT take out a fixed rate with KBC unless you are sure you have the bottle to move after it is over. You'll be dumped onto their 4.5% SVR after it and cannot move to a LTV rate which is over a % lower at this stage.

pasquale83

Chris_5339762 wrote: »

Yes. Do NOT take out a fixed rate with KBC unless you are sure you have the bottle to move after it is over. You'll be dumped onto their 4.5% SVR after it and cannot move to a LTV rate which is over a % lower at this stage.

But you can always go back to a fixed rate when a first fixed rate period is over. Or if you wan't to put a lump sum on the mortgage, you go on the SVR for 1 month, put the lump sum and go fixed straight after.

fiestaman

I received a letter from BOI who i have my mortgage with since 2009 and they are offering me rates as low as 3.6% based on LTV <60% fixed for 3yrs. i am only going to meet them next week to finalize a rate. I must also have my house valued by an auctioneer on their list which will cost between €120-€150. I was holding out to see if they would drop the variable rate but it isnt looking like it.

Chris_5339762

pasquale83 wrote: »

But you can always go back to a fixed rate when a first fixed rate period is over. Or if you wan't to put a lump sum on the mortgage, you go on the SVR for 1 month, put the lump sum and go fixed straight after.

Thats true of course. Wouldn't fit my situation (I'm overpaying) but may suit the OP. I'm just pissed off at KBC for stubbornly refusing to let good customers off the SVR onto a better LTV.

Trish56

Many lenders charge their existing customers higher fixed rates than new customers so you need to check first before fixing again. Also don't forget you can choose a split package i.e. 100k fixed over 25 years and 50k variable over 20 years. That way you know what your repayments will be on the fixed rate and you can pay off lump sums off the variable part of the loan to get rid of quicker.

pasquale83 wrote: »

But you can always go back to a fixed rate when a first fixed rate period is over. Or if you wan't to put a lump sum on the mortgage, you go on the SVR for 1 month, put the lump sum and go fixed straight after.

mcginty28

fiestaman wrote:

I received a letter from BOI who i have my mortgage with since 2009 and they are offering me rates as low as 3.6% based on LTV

I received the same letter but was waiting for their variable rate to drop which doesn't look like happening as boucher just seems to give the two fingers every time he's asked. Am now considering fixing for two years at 3.6 and seeing where I'm at then. possibly switch to another provider then at best rate and pay off a lump also.

Trish56

Be sure to ask them that when the 3 year fixed rate is up do you go back to their standard variable rate of 4.50% currently or to a loan to value variable rate and if you decide to fix again will you be offered the same rates as new customers. People should not readily agree to paying for a new valuation when the banks can refer to the property register to get an idea of the value.

fiestaman wrote: »

I received a letter from BOI who i have my mortgage with since 2009 and they are offering me rates as low as 3.6% based on LTV <60% fixed for 3yrs. i am only going to meet them next week to finalize a rate. I must also have my house valued by an auctioneer on their list which will cost between €120-€150. I was holding out to see if they would drop the variable rate but it isnt looking like it.

lulut

Got a letter from EBS yesterday saying they were dropping the variable rate which is now at 3.7%.

fiestaman

mcginty28 wrote: »

I received the same letter but was waiting for their variable rate to drop which doesn't look like happening as boucher just seems to give the two fingers every time he's asked. Am now considering fixing for two years at 3.6 and seeing where I'm at then. possibly switch to another provider then at best rate and pay off a lump also.

I am thinking the very same and am holding out since june, it make me wounder are they trying to hook you into the fixed term and then come november or december the drop the rate. Even still if they do i cant see them dropping it lower than 3.6 as the var is 4.3. I hate gambling on my mortgage.

Funnyonion79

Fiestaman and McGinty I'm in the same position. However I rang BOI the other day to arrange for one of their valuers to come and do a valuation and they told me I don't need to get this done now if my LTV is between 61-80%. This is completely different to what they told me last month.

I enquired what about if my LTV was below 60% and was told that I could pay for a valuation but they were offering the same rate of 3.6% whether I had a LTV of below 60% or between 61-80% so it would be a waste of money.

I got the letter today which I need to sign if I'm going to move onto the 3.6% fixed rate but need to read it carefully. I think I'll fix for 1 year and then see....it doesn't look like BOI are going to lower their SVR for existing customers anytime soon (I'm on 4.55%) so I'll save over €100 per month by movin to a fixed rate. And it's only for a year....

Need to check what rate I'll revert to at the end of the fixed period.

Redgirl82

I finally got offer and down to 3.25% from KBC on variable. In process of moving everything, solicitor is as slow as f**k....

It seems from thread alot of people are paying higher and staying with banks? any reason why you don't change?

fiestaman

Funnyonion79 wrote: »

Fiestaman and McGinty I'm in the same position. However I rang BOI the other day to arrange for one of their valuers to come and do a valuation and they told me I don't need to get this done now if my LTV is between 61-80%. This is completely different to what they told me last month.

I enquired what about if my LTV was below 60% and was told that I could pay for a valuation but they were offering the same rate of 3.6% whether I had a LTV of below 60% or between 61-80% so it would be a waste of money.

I got the letter today which I need to sign if I'm going to move onto the 3.6% fixed rate but need to read it carefully. I think I'll fix for 1 year and then see....it doesn't look like BOI are going to lower their SVR for existing customers anytime soon (I'm on 4.55%) so I'll save over €100 per month by movin to a fixed rate. And it's only for a year....

Need to check what rate I'll revert to at the end of the fixed period.

Yes they told me that 60% was the best they would do. I think even if they do lower it i cant see them dropping it 1%. Maybe .5%. If things pick up in europe and america then there is no hope of it dropping at all, it could rise and we all know by now that the government have no say. ~I think i will go for the 2year but id say it will be back to whatever the variable rate is then at the time when the term is up. I did threaten to leave them and they said OK and were letting me go.

fiestaman

Redgirl82 wrote: »

I finally got offer and down to 3.25% from KBC on variable. In process of moving everything, solicitor is as slow as f**k....

It seems from thread alot of people are paying higher and staying with banks? any reason why you don't change?

I inquired off KBC if they would take me and they would. i asked how much would it cost and they said that they would pay €2000 toward the fees, so i said what if the fee is €1000 and they said then you have €1000 for yourself. I would be afraid in case the fees could be €4000 which it could knowing a solicitor. Plus i wasnt saving much by moving.

Redgirl82

fiestaman wrote: »

I inquired off KBC if they would take me and they would. i asked how much would it cost and they said that they would pay €2000 toward the fees, so i said what if the fee is €1000 and they said then you have €1000 for yourself. I would be afraid in case the fees could be €4000 which it could knowing a solicitor. Plus i wasnt saving much by moving.

I got solicitor for circa 1,000....you need to pay for valuation of 120 as well. So I end up with more or less 900 in the pocket after the move and reduction in interest

I overpay anyway so I went with KBC as they allow overpayment to finish up quicker......

Funnyonion79

I can't switch to another bank because I'm on a career break so we are only a one income household now - as opposed to when we first took out the mortgage, both of us were earning at the time.

Chris_5339762

KBC have finally reduced their SVR... from 4.5% to 4.25%. A bit meagre.

Time to run the numbers and finally decide whether its worthwhile moving or not, in my situation!

Damiencm

Trish56 wrote:

Many lenders charge their existing customers higher fixed rates than new customers so you need to check first before fixing again. Also don't forget you can choose a split package i.e. 100k fixed over 25 years and 50k variable over 20 years. That way you know what your repayments will be on the fixed rate and you can pay off lump sums off the variable part of the loan to get rid of quicker.

Not sure about this..as far as I know there are no irish banks fixing rates for more than 7 years.

If BoI are offering 3.5% to lock in for 3 years then you can bet their variable rate will follow suit...just think it through..why would they take a hit for 3 years if they didnt need to.

Aib rates as of octomer 1st: standard variable (ltv+80%) = 3.65% or 3.55% (ltv less than 80%)

Mellowbird

lulut wrote: »

Got a letter from EBS yesterday saying they were dropping the variable rate which is now at 3.7%.

Me too - that makes it the third reduction in my variable rate in a year - Nov 2014, May 2015 and now Oct 2015. Everyone needs to include EBS variable rate in your mortgage research!

fiestaman

Funnyonion79 wrote: »

Fiestaman and McGinty I'm in the same position. However I rang BOI the other day to arrange for one of their valuers to come and do a valuation and they told me I don't need to get this done now if my LTV is between 61-80%. This is completely different to what they told me last month.

I enquired what about if my LTV was below 60% and was told that I could pay for a valuation but they were offering the same rate of 3.6% whether I had a LTV of below 60% or between 61-80% so it would be a waste of money.

I got the letter today which I need to sign if I'm going to move onto the 3.6% fixed rate but need to read it carefully. I think I'll fix for 1 year and then see....it doesn't look like BOI are going to lower their SVR for existing customers anytime soon (I'm on 4.55%) so I'll save over €100 per month by movin to a fixed rate. And it's only for a year....

Need to check what rate I'll revert to at the end of the fixed period.

I got that letter today now too, i don't need a valuation now but just tick a box for what rate i want. Mind you i cant get the new variable rate, only fixed rates are available to me.

What did everybody else go for??

mcginty28

after weighing up everything I decided on fixing for 5 years at 3.95% which is still saving me €90 per month on what I'm currently paying on my variable rate. hard to know what to do and how long to fix for but you need to factor in all your circumstances. I have an 8 month old baby and all going well another next year, in a year's time I'll have child care costs on top of my mortgage but this way I know what my bills will be roughly for next 5 years. when I looked at the repayments there wasn't a huge difference in the 3 year and 5 year rate.