EBS mortgage

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munsterman25

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Talking to EBS last week. One thing I was pleasently suprised at was this. They said, if I was approved for lets say a loan of 300k and only used 250K then on completion of either the self build or purchase then they would hold over the reamaining amount you havent used and make it available over the course of the term. But, and this seems to be the best part, they will offset that remaining amount 50k in above example against your capital amount for the calculation of interest, ie you will pay interest on 200K and not 250K.

Anyone have experience of this and also how do people find EBS???????????
 
Yeah - doesn't sound right to me either. Why would they give you €50K for free? Ask for clarification in writing and see what they say.
 
Ys didnt sound right to me either so I ask him to clarify it and from his clarification this seemed to be the case. Sounds to good to be true. Trying to weigh up my options.

Been to see a few banks so far and EBS seem good and are a little less tight with their money.

Whats the best tracker and var rate around at the moment?
 
As I say, get it in writing as I have received incorrect information from EBS staff in the past on various issues. Note that EBS are not the most competitive of mortgage lenders these days. They correctly claim to have the lowest standard variable rate but this ignores the fact that there are (non standard) variable tracker rates available elsewhere which are lower. See the best buys for latest rates - all of the variable rate mortgages listed are tracker rates.
 
Ya clubman I do notice that their trackers a re a bit dearer than some of the rest. I'll prob go for tracker but am concerned that if i need to switch from tracker to variable in the future (I know in reality if one goes up the other prob will too).
EBS do offer more money than most too though,

Also was at AIb last week. She offered me a tracker of 3.25% This is higher than that qouted in the best buys 3.1%. Anyone aware of which it is?
 
This sounds like silly maths to me. If they lend you 300K but you only draw down 250K to pay for the house surely they are just saying they wont charge interest on the 50K until/unless you draw it down. i.e. 300K loan less 50K untapped so they charge interest on 250K. munsterman25: If what you are saying is correct I'll eat my sombrero.
 
munsterman25 said:
Ya clubman I do notice that their trackers a re a bit dearer than some of the rest.
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Are you sure that they are even offering a tracker as opposed to a standard variable rate in this case?

I'll prob go for tracker but am concerned that if i need to switch from tracker to variable in the future (I know in reality if one goes up the other prob will too).
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I can't think of any circumstances in which one might switch from a tracker to a standard variable rate since the former is a variable rate with a guaranteed margin. If you are going for a variable rate then it makes sense to go with the most competitive tracker rate on offer. Are you sure that you're not confusing trackers with fixed rates or something like that?

EBS do offer more money than most too though,
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I doubt it - they are generally more conservative than other lenders in most cases.

Also was at AIb last week. She offered me a tracker of 3.25% This is higher than that qouted in the best buys 3.1%. Anyone aware of which it is?
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Some lenders offer different tracker rates depending on the size of the mortgage and hte loan to value ratio etc.
 
sounds to me that EBS intend to drawdown the remaining 50K and hold it on deposit for your "benefit" then they could offset the capital amount for the interest calculation. I have to say, as a broker I have never heard of anything like that, and I am therfore rather wary of it.
 
Clubman , ya I understand all your points. EBS's variable rate believe it or not is the same as their tracker rate 3.3%.

I know one wouldnt switch from a tracker to a variable. If the ECB changed upwards so would a banks/soceitys variable rate. He tried to spin me a yarn that they may not change their variable to remain competitve or were under pressure within the irish market not to change, but I wasnt having any of it.

Munsterdude, I havent heard of anythng liek it yet. I did query it and will do again
 
munsterman25 said:
EBS's variable rate believe it or not is the same as their tracker rate 3.3%.
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For what it's worth Brendan recently reported that his niece (?) managed to somehow get a 2.99% APR tracker from EBS. No harm in asking.

He tried to spin me a yarn that they may not change their variable to remain competitve or were under pressure within the irish market not to change, but I wasnt having any of it.
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Don't expect independent, objective, professional advice from somebody with a vested interest in selling you something - even if they are a mutual.
 
Ya I think PTSB over a tracker rate of 3.1% for LTV>90% and I believe they are quiet generous with their money. Proof will be in the pudding when I meet them I suppose
 
munsterman25 said:
Ya I think PTSB over a tracker rate of 3.1% for LTV>90% and I believe they are quiet generous with their money. Proof will be in the pudding when I meet them I suppose
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Most lenders don't go above c. 90-92% LTV in general other than for certain professions who may qualify for 100%. When trying to borrow the maximum amount don't lose sight of the fact that you need to be able to service the loan on an ongoing basis too!
 
ClubMan said:
For what it's worth Brendan recently reported that his niece (?) managed to somehow get a 2.99% APR tracker from EBS. No harm in asking.
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They offered it to me at the end of 2004 when I was leaving them for NIB's +0.79% tracker. The manager described it as their "Jumbo Tracker".

I do remember posting about it but can't find it now - they were very upset when I accused them (I wrote to everybody including the CEO) of keeping it a secret. I think it was the moment when the scales started to fall from my eyes about the much vaunted EBS mutuality promise.
 
munsterman25: The NIB ECB+0.79% tracker is for a LTV<60% (and a minimum mortgage of 100K I think).
 
Munsterman,

What was never entirely clear to me was whether the EBS "offer" was on the basis of my LTV (which would have been < 60%) or on the basis of the size of the mortgage (which was approx. €400k).

I didn't go into it that much because, even with switching costs, it was never going to be able to match my NIB offer.
 
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