National Irish Bank - LTV Mortgage Query

T

timmy1

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Hi,
Does the NIB LTV variable rate/ECB tracker mortgage have any penalties for early repayment of the mortgage in any year?

If I take out a mortgage now and come into money in say 6 months can I put this money into the mortgage to shorten the term/repayment without any penalties/fees.

thanks in advance.
 
timmy1 said:
Hi,
Does the NIB LTV variable rate/ECB tracker mortgage have any penalties for early repayment of the mortgage in any year?
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It is illegal (under the [broken link removed] as far as I know) for any lender to charge penalties for (part or full) early redemption of the capital sum borrowed under an owner occupier variable (including tracker) rate mortgage. Note that this does not preclude them from placing a limit on the minimum capital repayment amount that they will accept (e.g. some lenders will only take unscheduled capital repayments of €1K or more).
 
There is no penalty for repaying a variable or tracker mortgage early, so feel free to pay off as much as you like - it will shorten your mortgage term and lessen the amount of interest you pay...

There would be a "redemption fee" for paying extra off a fixed rate mortgage though.
 
Hi,

I was just in with NIB yesterday about a new mortgage. Even with the variable mortgage, you can pay a lump sum off the mortgage but the amount payable each month remains the same for three years... Every three years you have the opportunity to get your house revalued and your payments recalculated.

I was hoping to start the new mortgage in March 2007. but i have a lump sum coming hopefully around June, so I think i may be better off waiting until June and getting a smaller mortgage i.e. with lower repayments. Otherwise I suppose I could leave the lump sum in a deposit account for three year and accumulate interest.


Milly
 
milly123 said:
I was just in with NIB yesterday about a new mortgage. Even with the variable mortgage, you can pay a lump sum off the mortgage but the amount payable each month remains the same for three years... Every three years you have the opportunity to get your house revalued and your payments recalculated.
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This makes absolutely no sense to me. Perhaps you can explain in more detail what they said and what you understand them to mean?
 
Hi Clubman,

Yes it has me confused also.

We were undecided about whether to go for a fixed or variable mortgage with NIB. I told the girl we were dealing with that I had a lump sum that I wished to pay off the mortgage in around June this year, so she advised us to go for the variable so that we could do this. I then asked if the payments would be recalculated so that our monthly mortgage payment was reduced after the lump sum was paid off - she said it was.

She called me a few mins ago, saying that she had been speaking to a colleague and the situation was different - the monthly payments (as quoted to us yesterday) remain the same for three years, even if a lump sum is paid off the mortgage within those three years. At the end of the three years we have the opportunity to get the house revalued and the payments recalculated.

I hope this explains it a bit better. I will have a look at their website to see if they have anything in print about it.

Milly
 
As far as I know the opportunity to have your LTV rate revised is only available every three years. So if your home increases considerably in value you do not automatically avail of their reduced rates but can do do this by having a valuation done but only every three years.
 
OK - the LTV can only be reviewed after three years but surely the monthly repayments are not fixed for three years as stated above?
 
ClubMan said:
OK - the LTV can only be reviewed after three years but surely the monthly repayments are not fixed for three years as stated above?
Click to expand...

I've just switched recently to the LTV product. It's just like any tracker/variable mortgage. When you pay a lump sum your payments are recalculated immediately as normal.
This three year thing is a completely different issue.
Every three years you can if you want get your property revalued at your own expense (c.€120) and avail of a better rate.
Or if prices collapse as many believe you get Eircom to block NIB's calls!
 
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