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First Time Buyers - advice needed please

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  • 17-02-2016 7:36pm
    #1
    davenusman
    Registered Users Posts: 5 ✭


    Folks
    Just wondering if anyone out there can give us some good advice going forward?
    We are on the verge of buying our first home hopefully in the next few weeks. I’ve done a good bit of reading online, this site is superb.
    - €280,000 is what we hope to buy the property for.
    - €60-70,000 is what we can afford to put towards the purchase. LTV is approx. 72-75%
    - €220,000 is the mortgage we want to get.
    - 25 Years Term of the mortgage.
    We have gotten mortgage approval for the above figure over the last two months from all the leading banks – AIB, BOI, Permanent TSB, KBC, Ulster Bank. We both have banked all our lives with AIB. We are both teachers so we will have a fair idea of what our income will be in the long term.
    - I suppose we really want to make the right decision re who to go with and under what terms
    - All of them seem mad keen and ring at least once a week enquiring as to whether we are ready?
    - Right now whats the best deal out there?
    - Should we go for a fixed or a variable mortgage?
    - Is it worth moving from AIB who seem to be competitive but don’t offer other incentives – some of the offers of cash back once the mortgage Is drawn down in tempting. But AIB have been very helpful so far and generally seem easy to deal with, no hassle, I have heard of some horror stories with other banks.
    Thank you in advance of any replies.


Comments

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    #2
    James Bond Junior
    Registered Users Posts: 5,137 ✭✭✭James Bond Junior


    I would go with whoever offers the lowest variable interest rate. However I would strongly advise you to steer clear of KBC. I've had a nightmare experience from loosing forms, overcharging me and numerous other indiscretions and incompetence. I'm moving to Ulster bank in the coming weeks as they offer just as low a rate but a far service.


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    #3
    MarkAnthony
    Closed Accounts Posts: 6,934 ✭✭✭MarkAnthony


    I found KBC an absolute joy to deal with re mortgages, an absolute pain in the arse for day to day banking. They never even got back to my wife when she applied for a credit card. Conversely AIB, pain in the arse for a mortgage, great (I mean superb) in relation to day to day banking.

    As we got a lower interest rate from KBC for banking with them we've ended up using the account for bills and continue our day to day with AIB.

    I personally would go for the lowest rate you can get. All the indicators are pointing to low interest rates in the medium term. Fix later and also don't be afraid to move lenders in the future if it makes financial sense.

    The very best of luck.


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    #4
    PaulM1977
    Banned (with Prison Access) Posts: 210 ✭✭PaulM1977


    The cash back offers are a nice up front option but you'll find that both lenders offering this are not great on rates. If you avail of the cash back deal you must stay with the lender for 5 years otherwise it will be clawed back. When you calculate the difference between the best rate and what the cash-back lenders are offering, you end up paying more in the first 5 years than if you went with a lower interest rate. As per James Bond Junior, go with the lowest rate available on the market rather than any deals offered elsewhere.

    Thanks,

    PaulM


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    #5
    Adoolan85
    Registered Users Posts: 100 ✭✭Adoolan85


    Use comparison site bonkers.ie

    It will give you a good idea of what is available out there.


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    #6
    [Deleted User]
    Posts: 24,714 ✭ [Deleted User]


    Adoolan85 wrote: »
    Use comparison site bonkers.ie

    It will give you a good idea of what is available out there.

    I don't think it's that realiable to be honest. I have been doing a few random searches and bonkers keeps giving Ulster banks 3.7% Apr as the lowest but kbc have a rate of 3.56% with the same details entered on their own calculator and bonkers isn't even suggesting them.


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    #7
    baldbear
    Registered Users Posts: 5,564 ✭✭✭baldbear


    Aleah Some Theatre wrote: »
    I don't think it's that realiable to be honest. I have been doing a few random searches and bonkers keeps giving Ulster banks 3.7% Apr as the lowest but kbc have a rate of 3.56% with the same details entered on their own calculator and bonkers isn't even suggesting them.

    I found bonkers pretty poor. They obviously weren't showing best rates. They must only show rates from banks who pay them?

    We went with AIB ourselves. Had a decent fixed & variable rate.

    Also, those BOI type cash back offers are a rip off. You pay thousands extra in interest over the life of the mortgage.


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