10 year fixed rate?

witchgirl26

TheShow wrote: »

LTV - Non Account holders.

Fixed Rate - Up to 60% LTV 2.90% 4.30% SVR* 3.7%
Fixed Rate - Up to 80% LTV 2.95% 4.30% SVR* 3.7%
Fixed Rate - Up to 90% LTV 2.99% 4.30% SVR* 3.7%

That agrees to what I said. However if you quickly set up an account with Ulster Bank & get salary paid into it then it becomes:

LTV Initial Rate Rate at end of term APRC
Loyalty Fixed Rate - Up to 60% LTV 2.80% 4.30% SVR* 3.7%
Loyalty Fixed Rate - Up to 80% LTV 2.85% 4.30% SVR* 3.7%
Loyalty Fixed Rate - Up to 90% LTV 2.90% 4.30% SVR* 3.7%

TheShow

if i'm not mistaken, they offer 3.2% fixed for 10 years if you open an account with them.

TheShow

witchgirl26 wrote: »

That agrees to what I said. However if you quickly set up an account with Ulster Bank & get salary paid into it then it becomes:

LTV Initial Rate Rate at end of term APRC
Loyalty Fixed Rate - Up to 60% LTV 2.80% 4.30% SVR* 3.7%
Loyalty Fixed Rate - Up to 80% LTV 2.85% 4.30% SVR* 3.7%
Loyalty Fixed Rate - Up to 90% LTV 2.90% 4.30% SVR* 3.7%

yep, nothing is quick with UB though!

witchgirl26

TheShow wrote: »

if i'm not mistaken, they offer 3.2% fixed for 10 years if you open an account with them.

I still wouldn't go for a 10 year fixed rate though for the reasons I noted above.

TheShow wrote: »

yep, nothing is quick with UB though!

Fair enough - I know people who had the opposite experience but that was switching a mortgage to them as opposed to applying. They set up an account and all went very smoothly.

cookie1977

witchgirl26 wrote: »

2.6% with Ulster Bank for 4 years and you can reassess after that. 5 years fixed range from 2.9% up to comparable with what the OP has offered.

OP bonkers.ie shows a good comparison of the rates which I found helpful when I was looking.

I suppose I'm trying to insulate myself against "possible" future rises at a price I can afford now and into the future. I suspect (possible wrongly so) that rates wont drop much more. Hey, we can come back in 10 years and review the decision

cookie1977

TheShow wrote: »

if i'm not mistaken, they offer 3.2% fixed for 10 years if you open an account with them.

I'm with PTSB and have free banking. The monthly cash difference between 3.3 and 3.2 is minuscule for me and that doesn't include having to move.

TheChizler

stimpson wrote: »

KBC allow you to overpay 10% of the principal on a fixed rate.

That must have been it, KBC, BoI and UBL limit to 10% and penalise for going over.

TheChizler

TheChizler wrote: »

That must have been it, KBC, BoI and UBL limit to 10% and penalise for going over.

Upon moving to the fixed rate you can agree an overpayment with BOI far in excess of that. I'm overpaying about 66%/month with BOI.

grogi

Augeo wrote: »

Upon moving to the fixed rate you can agree an overpayment with BOI far in excess of that. I'm overpaying about 66%/month with BOI.

But that's not overpayment. That's simply shortened term.

.... I still have the same amount of years remaining on my mortgage.... once my fixed rate term is up the amount owed is spread over the remainder of the original term, that will be the basis of my future normal payment.

Now I'm overpaying to reduce the effect of the loan interest .... that might well result in a shortened term.

I've an agreed monthly overpayment... how you reckon it's not an overpayment is strange but I'm not overly bothered

https://personalbanking.bankofireland.com/borrow/mortgages/articles/mortgage-overpayment/

BOI call it overpayment too

Shefwedfan

grogi wrote: »

But that's not overpayment. That's simply shortened term.

I would say overpayment


KBC for instance have 2 methods.



Overpayment: I fill in document to say over the next 12 months I am going to pay let says 1500 per month instead of my 1000 per month. They put this into writing for 12 months and is overpayment, every 12 months I send in new document to continue


Reduction of term: again fill in document but you confirm how many years you want to reduce and the bank then works out your repayments...


KBC said they preferred the overpayment because you could change it around. Reducing by the set term can get messy i f you want to change

grogi

Shefwedfan wrote: »

KBC said they preferred the overpayment because you could change it around. Reducing by the set term can get messy i f you want to change

Wasn't it me who told you that? :] https://www.boards.ie/ttfpost/105871005

grogi

Augeo wrote: »

https://personalbanking.bankofireland.com/borrow/mortgages/articles/mortgage-overpayment/

BOI call it overpayment too

I'm actually surprised they would allow such big over-payment.

The idea behind fixed rates is that both parties take a risk - but if you are freely allowed to increase/reduce the amount you're paying, you are reducing your risk exposure: if the free-market rates drop, you could potentially borrow money somewhere else and overpay your higher fixed rate while benefiting from fixed rate when market goes up.

Unless of course you cannot freely increase/reduce your payment and it simply was agreed you'd pay extra 66% of the principal for the whole fixed term. That is reducing the mortgage period (you would pay it back earlier). It also seems it was also agreed to substantially reduce the principal payments when the fixed period is over, to keep the time in line with original figure.

grogi

grogi wrote: »

I'm actually surprised they would allow such big over-payment.

The idea behind fixed rates is that both parties take a risk - but if you are freely allowed to increase/reduce the amount you're paying, you are reducing your risk exposure: if the free-market rates drop, you could potentially borrow money somewhere else and overpay your higher fixed rate while benefiting from fixed rate when market goes up.

Unless of course you cannot freely increase/reduce your payment and it simply was agreed you'd pay extra 66% of the principal for the whole fixed term. That is reducing the mortgage period (you would pay it back earlier).......

You seem to presume a great deal.

It's an agreed over payment. I can revert to my normal payment at any time but can't pick and choose any other overpayment amounts.

grogi wrote: »

It also seems it was also agreed to substantially reduce the principal payments when the fixed period is over, to keep the time in line with original figure.

Nope, you are incorrect again.

When my fixed term is over the balance of the mortgage goes onto whatever the SVR is at that time and of course to the remainder of the original term. why would I agree to doing something for when my fixed term is expired? How could you do such a thing? Sure that would be simply agreeing to fix again far in advance. LOL

This is all basic enough stuff but you seem to want to shoehorn it in to your strange ideas/theories.

grogi

Augeo wrote: »

why would I agree to doing something for when my fixed term is expired? How could you do such a thing? Sure that would be simply agreeing to fix again far in advance. LOL

You agreed to those terms when you signed the contract

grogi

grogi wrote: »

You agreed to those terms when you signed the contract

No I didn't. ... you are claiming "It also seems it was also agreed to substantially reduce the principal payments when the fixed period is over, to keep the time in line with original figure" .............. when the fixed term is over I'm on a variable rate.

The principal payment will be reduced as I've overpaid.... you call this term reduction a few posts ago. You can't have it both ways.

As with anyone on a fixed rate I've agreed to fix for x amount of time and when that expires I'm back on the SVR that's applicable at that time.

HTH

You don't seem to understand how overpayment works. Two people have offered guidance to you but you keep digging, it's OK to admit you were wrong but you don't need to

grogi

Augeo wrote: »

No I didn't. ... you are claiming "It also seems it was also agreed to substantially reduce the principal payments when the fixed period is over, to keep the time in line with original figure" .............. when the fixed term is over I'm on a variable rate.

If interest rates are high in 5 years time how would the principal payments be reduced?

They will be reduced compared to what you're paying right now. You said it yourself: "When my fixed term is over the balance of the mortgage goes onto whatever the SVR is at that time and of course to the remainder of the original term. why would I agree to doing something for when my fixed term is expired? How could you do such a thing? Sure that would be simply agreeing to fix again far in advance. LOL".

Shefwedfan

grogi wrote: »

Wasn't it me who told you that? :] https://www.boards.ie/ttfpost/105871005

you have some memory....I can hardly remember the day of the week

I'm overpaying for a clear reason.
Are you still disputing I'm overpaying or have you moved on to critiquing the term "principal"?

I'm not agreeing to anything beyond my fixed term except that I'll be on the SvR applicable at the time.

There are benefits to overpaying.... you didn't think I could overpay to the extent I am & you also think it's term reduction and not overpaying.

grogi

grogi wrote: »

...

Unless of course you cannot freely increase/reduce your payment and it simply was agreed you'd pay extra 66% of the principal for the whole fixed term. That is reducing the mortgage period (you would pay it back earlier). It also seems it was also agreed to substantially reduce the principal payments when the fixed period is over, to keep the time in line with original figure.

Also not the case btw

cookie1977

I rang BOI again and I got it down to 3.2% on 10 years and 2.6% for 3 years (previously 3%) and 2.8% (previously 3%) for 5 years.

grogi

Augeo wrote: »

Also not the case btw

I admit I was wrong here ;P