ECB Tracker Mortgages - Questions???

Dinarius

My wife and I are currently with EBS and paying 3.25% a.p.r. variable.

On enquiring the other day, EBS told me that their tracker mortgage is 1.25% over base, making their tracker 3.25% (ECB = 2% + 1.25% = 3.25%), the same as their variable.

I then contacted my own business bank, National Irish Bank, and was informed that their ECB tracker is 2.8% a.p.r. i.e. 0.8% over ECB.

They offer a switching package which includes:

€600 towards the cost of legal fees AND I can choose my own solicitor;

No arrangement fee;

No booking fee;

The only requirements are:

The loan must be over €100k and less than 60% of the value of the property. We qualify on both counts;

There may be a valuation fee. Though when I explained where we lived and what property costs here, I was told that the person I would be dealing with in the branch would be familiar with valuations here and that the valuation should be unnecessary.

I was told that there would be no other hidden costs or charges.

Finally, I was told that the 0.8% over base would be guaranteed for the duration of the loan.

Since the difference between the two rates is more than 50%, when one excludes the ECB cost of 2%, this seems too good to be true.

Where's the catch? It seems like a total no-brainer.

I love the EBS mutuality ethos, but money is money. And, as a wise man once told me, "NEVER get emotional about money!"

Comments please.

D.

spongebob

Dinarius wrote:

Since the difference between the two rates is more than 50%, when one excludes the ECB cost of 2%, this seems too good to be true.

Where's the catch? It seems like a total no-brainer.

1. Get onto EBS and see if they can better their offer, you may be pleasantly surprised.

2. The difference is .45% which is €450 a year on a €100k Mortgage

3. The cost of changing is probably only €1000 (- their €600) = €400

4. Payback time under one year , yes it IS a no brainer.

5. NIB have been doing keen tracker rates for at least 2 if not 3 years by now, I am not in the least surprised. Check T&C's on their €600 offer and get some quotes for the work, a solicitor should give youa flat rate for it and not charge a % as it is so simple. The biggest single cost will be some govt stamp or charge .

M

Dinarius

Muck wrote:

2. The difference is .45% which is €450 a year on a €100k Mortgage
M

Muck,

Thanks for that. Looks like I'm not dreaming then!

Who are T&C?

D.

Nuttzz

i'd say he means terms and conditions

Dinarius

Nuttzz wrote:

i'd say he means terms and conditions

Doh!

Of course he does!

I blame the office party.

Thanks.

D.

7mountpleasant

If I remember correctly I think that there is actually someone cheaper than NIB although I could be wrong. Check the "your money" section in the Sunday times Business Section

Victor

Dinarius wrote:

National Irish Bank

Remember direct bank to bank transfers, no new sterling Northern Bank notes.