Key Post Buy to Let Mortgage Rates

ronaldo

Frequent Poster
Messages
399
Further to Brendans helpful post on low LTV PPR mortgages, here are the BTL rates I can find. I don't know how to do tables so feel free to update or add information. Rates quoted are APR's, not necessarily initial rates.

Variable rates

BoI| <50%|5.1%
KBC||5.27%
Ulster Bank|75%|5.3%
ptsb |<50%|5.4%
AIB||5.47%
ptsb |50% - 60%|5.5%
BoI|50% -75%|5.7%
ptsb|60% -75%|5.7%
BoI|>75%| 5.8%
Fixed rates

1 year|AIB|5.49%
2 year|Ulster Bank (<75%)|4.8%
2 year|AIB|5.56%
2 year|BoI|5.8%
3 year|KBC|5.56%
3 year|AIB|5.67%
3 year|BoI|5.8%
4 year|AIB|5.81%
5 year|AIB|5.99%
5 year|BoI|6%
10 year|BoI|6.9%

Ulster Bank
KBC
PTSB
AIB
BOI
 

ronaldo

Frequent Poster
Messages
399
Note that the Ulster Bank rates above stand out amongst the crowd. This is because you can choose either:

  • SVR + 0.65% for the life of the mortgage; or
  • 5.5% Fixed for 2 years reverting to SVR
The second option looks to be the most appealing. It starts out higher but, because it reverts to SVR as opposed to sticking to SVR+0.65%, the overall APR is lower.
 

Brendan Burgess

Founder
Messages
38,406
Hi Ronaldo

That's great. Thanks very much.

I will put it in tables after a few days. I don't want to do it now as it's a bit complicated and difficult to edit.

You might get a few suggestions where you want to edit the original post.

Brendan
 

Brendan Burgess

Founder
Messages
38,406
Hi Ronaldo

Thanks for the update.

I have put the data in tables and updated them for ptsb.

Are you ok with the layout?
 

Brendan Burgess

Founder
Messages
38,406
On reflection

For fixed rates, the APR is misleading as it is the fixed rate by 5 years + their estimate of the SVR for the remainder so the quoted APR is much lower than you will actually pay for the fixed period.

I will edit them to the actual interest rates, if you are ok with that.
 

marathonic

Frequent Poster
Messages
123
Are my calculations correct for someone in this hypothetical situation.

Let's say someone has a BTL mortgage with BoI at the 5.8% rate for a LTV of > 75%.

That person would be allowed to write 75% of 5.8% off against rental income for tax purposes, or 4.35%. At 41% tax, 4% PRSI and 7% USC, this would result in a deduction in tax/PRSI/USC payable of 2.26% of total borrowings (4.35% * 52%). Therefore, the net cost of borrowings could be considered to be 5.8% - 2.26% = 3.54%.

Therefore, if that person had a residential mortgage rate of less than 3.54%, they're actually better overpaying the BTL mortgage as opposed to the residential mortgage.
 

ronaldo

Frequent Poster
Messages
399
The tables look good to me. I have no problem with you editing the rates - probably makes more sense that way. Thanks Brendan.
 

ronaldo

Frequent Poster
Messages
399
KBC changes:

3-year fixed reduced from 5.56% to 5.48% APR
5-year fixed introduced at 5.82% APR
 
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