Best Mortgage Rates

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serotoninsid

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It's been a few years since I was up to speed as to what the going rates were for standard variable rate mortgages. Can anyone give me an idea of what would represent the best interest rate s.v.r. mortgage on the market right now?

Perhaps there's a key post on this somewhere? (if so, I have not found it).
 
I believe BoI are still offering 3.00% for LTV less than 50% new business, however they have not increased it since early last year, so I suspect an increase is inevitable. On the other hand their political masters may have told them they can't increase rates. Also, the credit assessment may be making it almost impossible to avail of the offer, so it may be illusory.

There used to be a mortgage best buy thread but no-one's updated in quite a while. Maybe if it was updated, some people would asses their cost of borrowing and maybe even try buying some houses!
 
Can anyone give me an idea of what would represent the best interest rate s.v.r. mortgage on the market right now?
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This has been recently updated...

http://www.*****************.com/mortgages
 
Hmm... hard to compare with my existing ECB + 0.57%! - but nothing I can do about that!

Thanks to you both for posting.

Is it likely that the banks could possibly increase their margins on variables any further (other than the increases the ECB will be passing on in due course)?
 
serotoninsid said:
... could possibly increase their margins ...
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You mention increase margins - that would imply increasing the rates on their loans at a greater pace than their funding costs are increasing. That is just not happening. How AIB and BoI can justify not passing on even the last ECB rate hike, never mind their other components of funding cost beggars belief. As was illustrated in their most recent financial accounts, their margin has actually been falling not increasing!

However I suspect your question was really meant to be "could possibly increase their RATES..." and the answer is yes - they COULD, and most likely will if they want to repair their balance sheets. New lending should be at higher rates in order to cross-subsidise the high funding cost of retail deposits as well as low-margin ECB trackers.
 
marksa said:
However I suspect your question was really meant to be "could possibly increase their RATES..." and the answer is yes - they COULD, and most likely will if they want to repair their balance sheets. New lending should be at higher rates in order to cross-subsidise the high funding cost of retail deposits as well as low-margin ECB trackers.
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Yes, rates as opposed to margins was what I mean't. Isn't this something that simply reaches a point whereby it's counter-productive? ie. if there are currently stats showing that X,000 folks can't keep up with mortgage repayments....??
Is there any standard 'rate' above european bank borrowing rates at which banks apply their own rate???
 
Are the banks even giving (i.e. selling) mortgages any more?

I thought they had no capital?
 
serotoninsid said:
Is there any standard 'rate' above european bank borrowing rates at which banks apply their own rate???
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No - depends on individual bank's funding costs, their local markets, product cost (including cost of regulation!), average credit risk of the customer segment etc etc.

And that's before looking at profit - yes that bad word that no-one in Ireland seems to think bank's should be making. Yet how else can a bank build up the reserves of capital to put away for the rainy day (recessions etc) when default rates rise above average.

You also talk about how high rates can go before default/arrears rates rise... and yes that will be a consideration for some banks. However, that only alludes to the original problem... Irish consumers (helped by the samy banks) way-over-leveraged themselves on cheap credit never thinking that rates were going to rise. But heck, that's a story that has had more discussion over the last 3 years than almost any other. It's up to individual banks to look at individual cases if their customers cannot afford the higher rates if rates rise. If all rates are kept artificially low, then those that can socialise the burden don't pay their part in returning the banks, and indeed the country to a stable footing
 
cremeegg said:
I dont think there is anything available at the moment that even comes close. If there is please let me know
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No - there isn't and there won't be. I just mentioned it in passing - it's one of the few upsides of the last few years - and when compared with current rates, it really puts the 'cost of money' into perspective.
 
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