Should I move mortgage providers?

E

edelmc

Guest
Hi,

I locked myself 5 year mortgage rate in march, got 4.29%. Mortgagt is 60% value of property. I know new mortgages have come to market since but can't work out would if it be worth getting something more like a tracker.
Any informed advice would be apperciated.
 
NIB ltv mortgage. you'd get 0.6 above the ECB,so 4.1%. Only catch is you're wage has to be paid into NIB a/c. As far as i am informed anyway.
 
edelmc said:
Hi,

I locked myself 5 year mortgage rate in march, got 4.29%. Mortgagt is 60% value of property. I know new mortgages have come to market since but can't work out would if it be worth getting something more like a tracker.
Any informed advice would be apperciated.
Click to expand...

Isn't there penalties for breaking your fixed rate deal?

Tis not a bad rate anywhichway
 
If the ECB rate goes up early 2007 by another 0.25 - then your fixed rate will be better than most - if not all - trackers on the market in Ireland. Unless rates start dropping (which is doubtful) if I was you I would stick with the fixed rate . There would probably be a penalty to pay to your current provider which would reduce any small savings you might make by going to NIB.
 
PermanentTSB sets out its rule as follows:
Whenever repayment of a loan in full or in part is made before the expiration of the Fixed Rate Period the applicant shall, in addition to all other sums payable, as a condition of and at the time of such repayment, pay whichever is the lesser of the following two sums:​
  • a sum equal to one half of the amount of interest (calculated on a reducing balance basis) which would have been payable on the principal sum desired to be repaid, for the remainder of the Fixed Rate Period, or​
  • a sum equal to Irish Permanent's estimate of the loss (if any) occasioned by such early repayment, calculated as the difference between on the one hand the total amount of interest (calculated on a reducing balance basis) which the applicant would have paid on the principal sum being repaid to the end of the Fixed Rate Period at the fixed rate of interest, and on the other hand the sum (if lower) which Irish Permanent could earn on a similar principal sum to that being repaid if Irish Permanent loaned such sum to a Borrower at its then current New Business Fixed Rate with a maturity date next nearest to the end of the Fixed Rate Period of the loan, or part thereof, being repaid.​
According to the first option you would have to pay a penalty of €14621 + costs for early redemption (by my calculations on borrowings of €200k) I think you are doing fine where you are. Well done.​
 
MortgageMate said:
NIB ltv mortgage. you'd get 0.6 above the ECB,so 4.1%. Only catch is you're wage has to be paid into NIB a/c. As far as i am informed anyway.
Click to expand...

This is incorrect. You have to open a current account and the mortgage must be paid from this account but that is all.
I recently switched to the LTV product and just transfer the money in to cover the mortgage. There are no charges on the account either.
 
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