First Active - Variable Rates - Why so high?

D

damoz

Registered User
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I have a mortgage with FA. Coming to the end of my fixed period. I would like to move to a tracker/variable rate mortgage with the option to put lump sums in from time to time. However, from looking at the rates on [broken link removed] they seem very uncompetitive ( eg Lowest tracker @ 6.6% Vs AIB @ 5.1%)

Am i missing something ? At those rates surely it would be wiser for me to move to a new bank?

Any advise would be appreciated.
 
Thanks for the reply.

ClubMan said:
Because they can?
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I suppose i expected the banks to be much closer in APR terms, as surely they would want to retain or attract business.

ClubMan said:
You can estimate the possible savings on offer elsewhere and then factor in switching costs to see if it's worth it. See Karl Jeacle's mortgage calculator.
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Thanks for this.

So - reading between the lines, i will actively look for a better deal and weigh in the cost of switching ( approx €1,000?? ) before making a decision.

As my decision date is coming up at end of month can i switch at any point thereafter as the process may not be complete before the end of my fixed period?
 
damoz said:
I suppose i expected the banks to be much closer in APR terms, as surely they would want to retain or attract business.
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If this were the case then some people would accuse the banks of operating a cartel.
So - reading between the lines, i will actively look for a better deal and weigh in the cost of switching ( approx €1,000?? ) before making a decision.
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Yes - but get a more accurate idea of the remortgaging costs rather than assuming €1K.
As my decision date is coming up at end of month can i switch at any point thereafter as the process may not be complete before the end of my fixed period?
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There will be no penalty if you are on a variable/tracker rate and switch to another lender.
 
damoz said:
I have a mortgage with FA. Coming to the end of my fixed period. I would like to move to a tracker/variable rate mortgage with the option to put lump sums in from time to time. However, from looking at the rates on [broken link removed] they seem very uncompetitive ( eg Lowest tracker @ 6.6% Vs AIB @ 5.1%)

Am i missing something ? At those rates surely it would be wiser for me to move to a new bank?

Any advise would be appreciated.
Click to expand...

Hi Damoz
Check out your original loan offer. It may have had stated that you can opt into a tracker rate once the fixed rate period has ended. If so this tracker may be better than what the bank are offering now. I'm only clutching at straws that the bak may have had an oversite of this.
Your broker or solicitor may have a copy of your loan offer.

Let me know how it goes.
 
Depending on when you took out your fixed, especially if it was past few years you might find you are moving to ECB + 1.15% which these days would not be too bad. Standard variable is actually cheaper than the tracker these days so check the conditions on your loan offer to see what it said would happen when fixed rate was up.
 
Do a shop around for remortgaging. Get the best offer and go back to First active and ask them to match. If you are a good customer they will not want to lose you.
I did that with Ulsterbank and got ECB+0.7% tracker for the remaining life of the mortgage - 30yrs on 80% LTV
 
damoz said:
I have a mortgage with FA. Coming to the end of my fixed period. I would like to move to a tracker/variable rate mortgage with the option to put lump sums in from time to time. However, from looking at the rates on [broken link removed] they seem very uncompetitive ( eg Lowest tracker @ 6.6% Vs AIB @ 5.1%)

Am i missing something ? At those rates surely it would be wiser for me to move to a new bank?

Any advise would be appreciated.
Click to expand...

From today's Indo

A spokeswoman for First Active denied the lender was exploiting trapped first-time buyers.
She added: "First Active customers who roll off a fixed rate and do not choose another product will automatically default in to a standard tracker rate at ECB plus 1.15pc, currently a rate of 5.4pc.
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http://www.independent.ie/business/...ught-in-negativeequity-loan-trap-1438632.html

So buy a copy of todays Indo and keep it handy would be my advice ;)
 
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