Mortgage advice

Tusky

I have two questions that hopefully yea can help me with.

1/ I'm taking out a €270k mortgage with AIB. I had planned to do 1 year fixed (3.2%) and then variable. Current variable rate would be 3.1% but it should drop to 2.95% within a year as the increase in the value of the house will take me below the 80% loan to value threshold. Would anyone advice anything other than the above?

2/ I'm planning on availing of the six month moratorium. It means I don't have to pay the mortgage for six months but adds about €30 onto the monthly repayments after that. It will be a huge help in terms of doing up the house...but would I be better off getting a bank or credit union loan instead and not availing of the moratorium?

All help appreciated!

DubJJ

Are you expecting the value to increase over the next 12 months due to the market conditions or are you planning on carrying out any upgrades or a renovation?
If it's the former this is risky assumption.

Tusky

DubJJ wrote: »

Are you expecting the value to increase over the next 12 months due to the market conditions or are you planning on carrying out any upgrades or a renovation?
If it's the former this is risky assumption.

My current loan to value is something like 81% so even a tiny increase in value of a couple of per cent would get me onto the lower interest. However, I will also be renovating which could increase the value too.

levi

Tusky wrote: »

My current loan to value is something like 81% so even a tiny increase in value of a couple of per cent would get me onto the lower interest. However, I will also be renovating which could increase the value too.

Just to let you know that in order to drop LTV band you have to pay for a valuation by an estate agent. They issue a report with a value to the bank. With AIB I think the cost is €150.

DubJJ

I've just changed the LTV for mine with Ulster Bank, they didn't request a new valuation and I got a fixed rate of 2.6% for 5 years (LTV under 80%) so it might be worth shopping around. They also give €1500 cash back to new customers.

iluvfatfrogs

DubJJ wrote: »

I've just changed the LTV for mine with Ulster Bank, they didn't request a new valuation and I got a fixed rate of 2.6% for 5 years (LTV under 80%) so it might be worth shopping around. They also give €1500 cash back to new customers.

I see this "offer" is expiring next week.
I plan to speak with them soon about selecting the same conditions you did, was there any indication they will extend said offer?

DubJJ

I don't know, it was actually a couple of months ago that I switched.
Are you with UB at the moment? If so it only takes about a week to switch so you may still have time

iluvfatfrogs

DubJJ wrote: »

I don't know, it was actually a couple of months ago that I switched.
Are you with UB at the moment? If so it only takes about a week to switch so you may still have time

Mortgage with AIB, but have current acc with UB.
Will contact them today anyway.

I see a lot of the offers that are currently in place run out at 30.06.2018.
I wonder will we see new/original offers coming from all the banks next week?

Heres Johnny

Throw a few extra quid and start your mortgage below 80% if you possibly can since you are so close. Absolutely no guarantees house prices will go up.
Or try to get it now, never know you might get lucky.
I'm on that 2.95% rate.

mazza

iluvfatfrogs wrote: »

I see this "offer" is expiring next week.
I plan to speak with them soon about selecting the same conditions you did, was there any indication they will extend said offer?

I actually asked a contact in Ulster Bank on whether the 1,500e legal fee offer would be extended beyond the end of June. She said it has been in operation for a number of years and that it would be extended.

Hope that helps.

iluvfatfrogs

mazza wrote: »

I actually asked a contact in Ulster Bank on whether the 1,500e legal fee offer would be extended beyond the end of June. She said it has been in operation for a number of years and that it would be extended.

Hope that helps.

Yep they've had those 1,500 Balloons in branch for what seems like years now.

Its the 5-7-10 year fixed term interest rates I'm interested in!

spaceHopper

AIB will only let you change the LTV once so you'd be better off getting it below 80% now and then when it's 50% LTV changing

rsynnott

Tusky wrote: »

1/ I'm taking out a €270k mortgage with AIB. I had planned to do 1 year fixed (3.2%) and then variable. Current variable rate would be 3.1% but it should drop to 2.95% within a year as the increase in the value of the house will take me below the 80% loan to value threshold. Would anyone advice anything other than the above?

Have you checked that AIB actually allow this band switching? Last I heard they didn't as a general policy, though did it for some people who made enough of a fuss. I'm on the >80% band but would have an LTV lower than that these days; I haven't looked to switch bands because I didn't think it was generally allowed.

ted1

spaceHopper wrote: »

AIB will only let you change the LTV once so you'd be better off getting it below 80% now and then when it's 50% LTV changing

Really ? They wouldn’t let me change at all.

I stated in 2012 on 92% down to about 35% now