Key Post Effective fixed rates with cash back at a glance

Brendan Burgess

Brendan Burgess

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This is a Work in Progress to experiment with a new layout.
Suggestions and corrections welcome

upload_2017-7-19_12-39-46.png


Note: The effective rate is calculated as follows: (Using KBC €100k as an example)
Quoted rate :3.19%
- effect of cash back:1% ( €3,000/€100,000 = 3% /3 =1%)
Effective rate: 2.19%

This is not exact,because the cash-back up front would reduce the rate a little, but it's close enough to be a good guide.

There are so many combinations that it would be hard to catch them all.

Don't some lenders give cash back to switchers but not first time buyers?

I could do three separate sheets for FTBs, movers and switchers.

It would be very hard to keep it updated, if they keep changing their rates .

I presume that most mortgages are between €100k and €300k. Maybe put in one more column for €600k?
 

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If the rates are the same, does it matter if I go with KBC or Ulster Bank? (to be continued)

Brendan's views

Sarenco's counter argument:




Brendan
 
Used to have a UB 10 year fixed in the past .one of the biggest advantages was I knew cost of Mortgage and I could see I could pay for it. In the past Ulster Bank done fixed rate Mortgage when no other bank did.I paid over 16% variable rate around 1990,
 
I'd add 500k, rather than 600. It tends to be where the number of mortgages tapers off rapidly, particularly with FTBs.

Your table is a cleaner layout for this purpose.
 
Thanks Brendan, this is useful.

I'd agree with RedOnion re 500k and might also add 400k. Assuming 80% LTV's this would then cover house values of €625k, €500k, €375k, €250k and €125k.

I believe EBS will be moving on their fixed rates soon, more information on this may be known towards the end of the month.
 
Hi Brendan

That's a nice clean way of showing the effective, annualised cost of credit of various fixed-rate products for specific amounts, at a particular LTV, over specific terms.

I'm open to correction but I'm pretty sure all lenders currently have the same cash-back offers for FTBs, movers and switchers.
 
Sarenco said:
I'm open to correction but I'm pretty sure all lenders currently have the same cash-back offers for FTBs, movers and switchers.
Click to expand...

That would make it very easy, but I had it in the back of my mind that one of them has a "switcher deal"

Brendan
 
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