Choosing between two lenders APR

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ccmurf

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Hi all,

I am a FTB and went sale agreed last week. I have been shopping around for the right mortgage and have narrowed it down to two lenders. I am looking for 3 year firxed rate. BOI offers a rate of 4.69% which would cost me €982 with an APR or 4.2%. The Irish Nationwide are €10 cheaper at €972 and have an APR of 4.46%. This may seem like a silly question but which is the best option. Advice needed urgently.

Thanks
 
The one with the lower APR is the better deal. It does sound counter-intuitive given that it is more expensive per month, but if you asked both lenders how much remained outstanding at the end of the fixed 3 years, you will find that it will be less on the loan with the lower APR.

But your focus may not be on long-term value, just getting lowest repayment possible in the short term. Your choice.
 
ccmurf said:
Hi all,

I am a FTB and went sale agreed last week. I have been shopping around for the right mortgage and have narrowed it down to two lenders. I am looking for 3 year firxed rate. BOI offers a rate of 4.69% which would cost me €982 with an APR or 4.2%. The Irish Nationwide are €10 cheaper at €972 and have an APR of 4.46%. This may seem like a silly question but which is the best option. Advice needed urgently.

Thanks
Click to expand...

Any further details, such as LTV, Mortgage amount and Term.

Have you checked with NIB, [broken link removed].

Their 3-yr fixed is 4.55% (4.44% APR).

Also, you could check Karl Jeacle's Mortgage Calculator
 
Thanks for your help . I think I'm going to go with the BOI.
Any advice on mortgage protection and critical illness. Got a quote form BOI of €58 for critical illness and mortgage protection. It seems a little pricey considering I'm a non- smoker in my early twenties. Any advice.
 
Both institutions rates are influenced by what the "floating"/variable rate is for the remainder of the mortgage -e.g. 27 years on a 30 year mortgage. If the fixed rate is lower on one than the other then focust on that. Ask what the APR is for the 3 year period only.

You will find that the variable rate in one case is higher than the other. BOI's appears to be much lower than INBS, while the INBS fixed rate (which you have not quoted) is higher than BOI.

In any case, once the fixed period is over, you do not have to stay with either company. Shop around again once the fixed period is up.

Agree that you should look at the 4.55 with NIB, as Tesco say Every little helps!
 
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