Best mortgage rate

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lotus

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I have just come off a 2 year fixed rate with BOI at 4.49%. I am now on a variable rate of 4.5%. There is 28 years left on the mortgage.
The outstanding mortgage is about €270K.
The house is probably worth about €500K
Thus loan to value ratio is about 55%.

BOI have just wrote to me offering the following fixed rates (basted on a LTV up to 75%):
2 year fixed: 3.8% (4.3%APR)
3 year fixed: 3.85% (4.2% APR)
5 year fixed: 3.95% (4.2% APR)
10 year fixed: 4.5% (4.5% APR).

I am inclined to go with the 2 year fixed.

Im willing to change banks etc if there are savings to be made.....Which rate should I go for or shoud I change banks? Are further rate reductions anticipated soon?

All thoughts welcomed.
 
Lotus.
There are some good posts elsewhere in AAM on mortgage rates.

As a quick comment.

Your Loan to value (LTV) @ 55% makes you a prime customer for any bank.

Take your figures to AIB, PTSB, KBC etc, you may be pleasantly surprised.
From other posts BOI are in the business of always maximising rates and rely on customers reluctance to go to the bother of changing.
I think you can get better rates.
 
You can get 3.61% variable from KBC, so a saving of 0.9% on €270k would be €2,400.

It will cost around €1,700 to move, but KBC will give you €1,000, so the net cost of €700 will be recovered within 4 months.

Go for it.

I expect rates to fall further and you can switch again if you are on a variable rate. If you fix with BoI or anyone else, you won't be able to switch.

Brendan
 
Brendan Burgess said:
It will cost around €1,700 to move, but KBC will give you €1,000, so the net cost of €700 will be recovered within 4 months.
Click to expand...
A solicitor quoted me €1150 inc. VAT recently . . a valuation would add maybe €130 (or €65 if the bank accepts a drive-by). €1700 might be an overestimate.
 
Hi sahd

You are confusing mortgage repayments which include capital, with the real cost, which is just the interest.

You can get 3.61% variable from KBC, so a saving of 0.9% on €270k would be €2,400.

Brendan
 
Lotus, were you offered a Variable LTV rate for the bracket you are in? Or only Fixed Rates?
 
How do they figure out the APR on those fixed rates - do they assume e.g. 2 years @ 3.8% then 28 years @ 4.5%?
 
sahd said:
If the mortgage is a repayment mortgage (which it probably is) - then surely the best way to compare cost is to compare the monthly payments. If it was an interest only mortgage - then your figure would be right.
Click to expand...

No.

Which of the following is better off?

Johnny who pays €1,000 a month rent.

Paddy who paddy who pays €600 a month rent, but puts €500 into a savings account?

Paddy's outgoings are higher, so by your account, he is "paying more" than Johnny.

I used the figures in my example for the interest he was paying i.e. the true cost of the mortgage.
Your figures include capital repayments.

Brendan
 
Hi sahd
9/10. I am deducting 1 for the error of adding 2015 euros to 2043 euros as if they were interchangeable.

Brendan
 
Many thanks for the replies.

I contacted AIB and KBC.
Unfortunately, even though my LTV is very good (around 50%), their criteria re maximum amount loaned based on salary is obviously a bit stricter than BOI so I will have to stay with BOI for another while. KBC came near but not near enough. I would have to come up with €10K myself now and I don't think it would be worth the hassle.

It looks like the best option will be to go for the 2 yr fixed rate with BOI for 3.8% and then at that stage I should have enough paid down on my mortgage to meet the criteria of the banks with the more competitive interest rates. It is frustrating not being able to move the mortgage to a bank where I can get lower interest rates. I have an exemplary credit history, safe job, no other debt and have never missed a repayment!

On the flip side, I guess I was lucky to get the amount I got from BOI 2 years ago! Given the capital appreciation since it was worth the stretch.

I presume my best option is the 2 yr fixed LTV 75% at 3.8% is my best option for now.............
 
Guys similar situation, just looking for a fresh pair of eyes.
18 years left on mortgage circa 200k. Current provider BOI.
Offered 3.65% from KBC for 3 year fixed subject to usual T&C's.
Offered 3.85% from BOI or 3.95% 5 year fixed.
The .2% difference would save me circa €650 over three years which would just cover the switching costs after including the €1 k on offer from KBC.
My Q is should I go for the 3 year or 5 year fixed from BOI.
Thanks in advance.
 
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