Are we paying too much on our mortgage?

B

Blossom

Registered User
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We have a mortgage of 260,000 and are paying 1,600 a month on a tracker rate (excluding insurances etc). We have 19 and a half years left on the mortgage. Any ideas if we are getting a good deal or should we shop around.

Any help would be appreciated. Thanks.
 
Without details on the original term of the mortgage, and the rate (as a tracker, the amount over the ECB rate), it's not really possible to answer the question.
 
Hi Dreamerb

The original term of the loan was 25 years. We paid in a lump sum of 30 grand last year and the rate will remain at 1.05% above ECB rate. Any thoughts would be welcome.
 
What is the value of the property now (for calculating your LTV - loan to value [€2600/€Value]) as this greatly changes the rates you may be able to recieve?
 
Hi there,
You should really have a look at switching mortgages - A good broker will help - You purchased the place about 6 years ago and I am sure you LTV will possibly be in the range of 40 - 60%.Check what houses have sold for in your area that will be a good guide as to what the LTV is.
 
Ok so you roughly have an LTV of 45% - you should be looking at swicthing to Bos or IIB (I think) - your broker will know - but they have a tracker of 0.95% for 2 years and then a tracker of .99% after that - your broker will confirm this.

What I would do if I was in your position is switch and try and keep the payements as they are - to reduce the term. SOme banks will also assist tworads legal and survey fees. In your situation certainly worth bearing in mind.
Mr. Bear and myself are planning to switch when he becomes permanant in April.
 
There are a number of fixed rate options also if you want to go down that road which work out cheaper in the short term but obviously will revert to the variable rate after a certain time. Although its worth talking to a broker who can give you a better idea.

Jacqueline
 
I would suggest looking at the NIB offer detailed here.
It provides 0.5% above ECB for LTVs < 50% (you would need to have a valuation done as detailed in the thread for them to calculate the LTV). Further details on the additional transfer costs also detailed in there.

As suggested, if you do switch do try and maintain current payment levels (or as high as you can afford) to reduce the term and the total cost of the mortgage.

[Possibly also investigate using guaranteed investments [regular monthly saver accounts] for your funds to return more than you'd save by the reduction in your mortgage. Previous AAM post by "Ronaldo" details some information on this (search for "mortgage" in posts by Ronaldo using the advanced search feature to find further details]
 
would suggest looking at the NIB offer detailed here.
Click to expand...

I have rang NIB on two occasions to get their info on the new product - last November - still no word - we spoke to a broker who has deals with all banks apart from NIB - he informed me that they are a very sloppy organisation to deal with - and whose lending criteria are very tight - 2.5 times your income!
He also said that you have to open a current account with them - and you pay charges on that - which in turn devalues what they are actually giving you in the mortgage.

He encourage us to look at Bos and (IIB -I think) but we have to wait until Mr. bear is permanent before we can switch..

Quick question for Jacqueline - would you fix your rate now - as in the short term I would have imagined fixing is slightly more expensive.
 
pinkyBear said:
I have rang NIB on two occasions to get their info on the new product - last November - still no word - we spoke to a broker who has deals with all banks apart from NIB - he informed me that they are a very sloppy organisation to deal with - and whose lending criteria are very tight - 2.5 times your income!
He also said that you have to open a current account with them - and you pay charges on that - which in turn devalues what they are actually giving you in the mortgage.

He encourage us to look at Bos and (IIB -I think) but we have to wait until Mr. bear is permanent before we can switch..

Quick question for Jacqueline - would you fix your rate now - as in the short term I would have imagined fixing is slightly more expensive.
Click to expand...

NIB don't deal with brokers so I am not surprised your one had negative views about them. No business for him if you go with them. The charges (if any) on the current account in no significant way devalues what they are giving you on the mortgage if you end up paying ECB +50bps which is miles better to what other banks are offering. Have heard on the grapevine that BOS (Halifax) are launching a new product today or on Monday which apparently beats everything on the market so will have to wait and see!
 
pinkyBear said:
I have rang NIB on two occasions to get their info on the new product - last November - still no word
Click to expand...
While I agree that really isn't good enough from the banks POV, the reason that they are so busy (and hence slow to get back) is that they currently have the best offer on the market (given the OPs situation - but only if they would give the amount so more investigation would be needed).

we spoke to a broker who has deals with all banks apart from NIB - he informed me that they are a very sloppy organisation to deal with - and whose lending criteria are very tight - 2.5 times your income!
Click to expand...
I'm not too surprised that a broker who doesn't deal with NIB was against you looking into the product. Any issues people (from AAM) have had with NIB (and there are a good few) are in that thread, for the possible savings available, it certainly wouldn't put me off.

He also said that you have to open a current account with them - and you pay charges on that - which in turn devalues what they are actually giving you in the mortgage.
Click to expand...
Think there were details of availing of the offer without having to pay for the banking, but could be wrong. If the OP was interested, again, the info is in the thread.

No connection with NIB or any experience of this offer or them in general. Just know that 0.5 + ECB is a VERY good rate.
 
Have heard on the grapevine that BOS (Halifax) are launching a new product
Click to expand...
- will wait with bated breath -

Getting back to the NIB thing -
have rang NIB on two occasions to get their info on the new product - last November - still no word - we spoke to a broker who has deals with all banks apart from NIB - he informed me that they are a very sloppy organisation to deal with
Click to expand...

What ever about the offer (which is a fantastic offer) it would help if I got the information - I rand a local branch and I rang the head office.

NIB don't deal with brokers
Click to expand...
Why wont NIB deal with brokers - from a business point of view - most people get mortgages from brokers - in doing so they are cutting out a huge market share -
 
Why wont NIB deal with brokers - from a business point of view - most people get mortgages from brokers - in doing so they are cutting out a huge market share -
Click to expand...

Because the broker gets a nice tidy lump of commission - somewhere in the region of 1% of the mortgage value. In NIB's case, it could be said that they are giving better value by passing on this 1% saving into the rate they offer.

Personally, I think brokers are most useful for first time buyers/upgraders who want to get the maximum amount of loan by any means possible. For people, who are looking for value/savings, such as just switching mortgage provider for better rate, a broker is next to useless. You can do the checking out of rates yourself - using such forums as AAM, or calculators such as www.jeacle.ie
 
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