Current Account Mortgage

B

Buddha

Registered User
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Hello,

This is probably in another thread but I've searched and can't find it so apologies for that.

I am starting to earn a little more than subsistence and I am looking into moving to a current account mortgage with the intention of reducing the term of my mortgage.

I know First Active (who I am currently with) have them but I want to know is there any competition from other companies?

Also has anyone any advice on what I should consider before moving to it?

Thanks!
 
Buddha said:
Hello,

This is probably in another thread but I've searched and can't find it so apologies for that.

I am starting to earn a little more than subsistence and I am looking into moving to a current account mortgage with the intention of reducing the term of my mortgage.

I know First Active (who I am currently with) have them but I want to know is there any competition from other companies?

Also has anyone any advice on what I should consider before moving to it?

Thanks!
Click to expand...

I haven't got the figures to hand but when I looked into it last year I worked out that unless you always had something like €38,000 or more in your current account these mortgages work out more expensive than tracker mortgages.
Put simply good if you're loaded, bad if you're not. There can be an advantage if you're self employed and have large amounts of money hanging around in advance of settling your taxes which can be worth considering.
 
Ah! So the interest rate is higher than a standard tracker then?

I wonder if the rate is negotiable? This all comes down to whether there's competition for this type of mortgage I suppose?

Someone suggested to me that Ulster Bank have a similar offering but I couldn't see anything on their website.
 
KalEl said:
I haven't got the figures to hand but when I looked into it last year I worked out that unless you always had something like €38,000 or more in your current account these mortgages work out more expensive than tracker mortgages.
Put simply good if you're loaded, bad if you're not. There can be an advantage if you're self employed and have large amounts of money hanging around in advance of settling your taxes which can be worth considering.
Click to expand...

I just looked at the figures there KalEl - it depends on how big your principal is but the interest rates are 5.3% V 4.9% on the First Active tracker. That would leave me at building up around 12,000 before I break even.
 
Buddha said:
I just looked at the figures there KalEl - it depends on how big your principal is but the interest rates are 5.3% V 4.9% on the First Active tracker. That would leave me at building up around 12,000 before I break even.
Click to expand...

Also remember you'd have the cash on deposit anyway so that has to be considered.
 
The only competition is from National Irish Bank - they call it the Offset Flexible Mortgage.

If you get your salary mandated into the account every month it can also have an effect, as interest is calculated daily so at the start of the month your offset account will have the full amount of your salary in it.

Liam D. Ferguson
www.ferga.com
 
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