Best rates out there at the moment for FTBs

H

Headachecity

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Hi,

We are closing on the sale of our house next week and we are still not 100% happy with the rate we are getting and we are wondering who is the best at the moment out there.
We are borrowing 95% of the house price which is €359,100 over 35 years off IIB and the rate we are on is a 3 year fixed rate of 4.9% APR. Therefore our repayments are €1,810 per month before TRS is deducted, but it's still pretty steep.
Does anyone think we can do any better than this, we know we can switch lender if we want before closing so we would need to move fast!.
Thanks in advance!.
 
Buy the Irish Times tomorrow and check the rate table in the property section. Only fix if you really need to otherwise look for a competitive tracker rate.
 
[broken link removed] and www.mortgages.ie have a fairly good overview of what is available at the moment.

As ClubMan says, tomorrow's Irish Times will have a fairly comprehensive list.
 
Thanks Clubman, we want to fix for a year allright but IIB have the 3 year fixed as a "condition" of our loan offer so we are a bit stuck there and even our broker was a bit confused as to why they stated that!. Joint salarys of €92k and €40k savings and we are clean with the ICB etc so it's a bit annoying to say the least!.
 
I'm a broker - You're doing pretty good. You may get better rates borrowing 92% but you are limmited with 95%. At this level IIB will have one of the better rates on offer.
 
Ebs 3 yar fixed is 5.08
Ptsb - 4.99
Ulster Bank - 5.04

It is a good rate but based on those salaties i dont know why they want you to fix although I would advise you to
 
As ever I believe that one should only fix if necessary - i.e. if meeting the mortgage repayments now or with a few percent increase would put you under pressure with regard to cashflow. Certainlt don't fix in an attempt to time the market and save money compared to a competitive tracker rate. If you can afford fluctuating repayments (and in particular rates going up by a few percent) then you should probably look for the most competitive tracker rate on offer for your circumstances. I don't really understand why you broker can only get this offer that requires you to fix.
 
If you are closing on your house next week and IIB are only offering you a mortgage on the basis you fix for 3 years, it may well be too late in the day to go looking elsewhere.

I have to say that I have never heard of a loan offer conditional on fixing a rate, but that's not to say it doesn't happen.
 
We were going to fix for the first year so we can free up the cash we have to furnish the house etc plus we have 2 small children to look after so we don't want to risk anything. I suppose at 95% 4.9% is not THAT bad but it's the 3 year fixed thing that gets me, broker is still shopping around apparantly and negotiating with the bank but we were in such a rish to sign the contracts we did sign the loan offer and send it back so we're stuck. I am not complaining, just thought there might be better rates out there but the way things are at the moment nothing is decreasing!!.
 
I too think it's unusual that the loan offeris conditional on fixing for 3 years.Wonder if it's IIB or your broker playing games? However that rate is v good for a 3 year fixed.
Good luck and enjoy your new home
Mary
 
You are on a 3 year fixed rate with IIB because you get more money that way. They assess your ability to repay at 4.99% (3 yr fixed) and not the 6.95% (variable +2%) they would.

It seems that if they did stress test you, you wouldn't get what you want.

Best 3 year fixed in the market is the Bank Of Scotland at 4.69%

The saving would be over €68 a month, €816 per year and €2450 over the 3 years that you are fixed.

Please note that BOS have a different criteria to IIB and you may not necessarily qualify for what you want if you take it to another lender.

If you want to either publish or pm me your income details, ages and any other information you might deem relevant, I am happy to advise you on what rates would be available to you.

Bob
 
Thanks Bob, which such a short time to go to closing we are afraid to rock the boat but €68 per month is a great saving.
I am 30, hubbie 33, both in permanent employment. I earn €45k per annum and hubbie earns €47k incl bonuses. I have a €2k bonus on top of my salary. Savings €40k, no loans or anything on our records at the moment. Anything in the past 5 years has been fine, we have 2 kids under 5 and pay €1600 per month in childcare and we've paid €1,200 per month in rent for years now without any problems. That's about it, would we be mad to go to BOS at this stage though?.
 
I think you should ask your broker what's going on, according to the details you posted and based on IIB criteria you should not have to take the 3 year fixed from them, on standard criteria alone, I'm getting you to a figure of €415,000

as you only want €359,100 you need to go back and ask, for the record BOSI discount €300 per child from your net monthly income, so I don't believe they would offer €359,100

DeirdreL

www.rea.ie
 
He is shopping around for us at the moment apparantly but I requested that he goes back to IIB also and queries the 3 year fixed rate....should be interesting!.
 
On the information you provided above, you are eligible for a variable rate with IIB.

Mind you on 95% finance, it's not a great rate either.

You would also qualify for the Bank Of Scotland loan as well easily enough.

Taking a 3 year fixed rate is not necessarily a bad idea due to the number of rate increases that have occured over the past few months and that are likely to happen in the near future.

Just make sure you get the best one available!

BOS are generally pretty slow, but if all the information is readily at hand, it could be turned around in a few days.

For a saving of €68 a month I'd give it a go.
 
There is no way you should have to take the three year fixed rate. Based on salaries all IIB rates should be available to you, in fact there is not a bank in Ireland that would not be happy to take you on. If they can not get you a better rate I think your broker is doing you a dis-service. Just because you sign contracts on an IIB laon offer doesn't mean you need to draw down the funds from IIB. Your broker has not shopped around for you as he should have. How many banks do they deal with?

The only way there may have been a problem getting your loan over the line is if you have other personal borrowings that may effect your borrowing capacity.

As I mentioned in a previous post I am a broker. Hope this helps.
 
Stephenkelly said:
There is no way you should have to take the three year fixed rate. Based on salaries all IIB rates should be available to you, in fact there is not a bank in Ireland that would not be happy to take you on.
Click to expand...


Not at 95% LTV
 
Our broker seems to be quiet loyal/friendly or whatever with IIB, and to be honest it might be best for us to take the 3 year fixed rate for security starting off and being able to perhaps save a few quid over the next 3 years when we can change.
I know we don't have to drawdown the mortgage cheque from IIB it's just we want to move into our house asap so it might be risky to move lender!. We only went for 95% recently to have more cash available to buy things for the house and change one of the cars!
 
It's not a bad rate with IIB and you could be very thankful for it when/if the rates continue to rise

Good Luck

Bob
 
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