Fixed rates Best Buys

[Brendan Burgess]

Update: I have changed my mind on this in the light of the comments by Red Onion and Sarenco on break fees. People should fix now. Brendan 18th December 2017

I don't think it's a good idea for anyone to fix at present. While ECB rates will rise at some stage, Irish mortgage rates are too high, and should fall before the ECB rates rise.

Having said that,
It may be much cheaper than you think to break out of a fixed rate early...

After Irish rates have fallen, fixing might well be worth considering.


So it seems to me that the best options at present are either an EBS variable rate with 2% cash back or the KBC mortgage with €3,000 cash back.

Then switch to another lender after a few months and get more cash back.

But as a lot of customers want to fix, here is a schedule of the Best Buys, after incorporating the cash backs.

 

[Brendan Burgess]

Effective fixed rates for mortgages between 80% and 90% LTV after taking any cash-back into account

Taking the first line as an example - Bank of Ireland - 3 year term

Notes:
AIB and Haven have the same fixed rates as AIB but don't give cash back, so there is no point in including them in the table.

 

[Brendan Burgess]

60% to 80% LTVs

Nominal rates and effective fixed rates after taking any cash-back into account

Lowest effective rates are highlighted in red.

Note: Ulster Bank is launching a 2.6% fixed rate for amounts over €300k and < 80% LTV in the coming week. But details are not yet to hand.

Taking the first line as an example to show how the effective rate is calculated:

 

[Brendan Burgess]

Low LTVs

 

[RedOnion]

@Brendan Burgess I think it'd be a good idea to throw in a line at the top with LTV variable rates for the same banks for comparison - the cash backs are also available there, and then we'd have a full view of comparable variable vs fixed rates.

 

[Brendan Burgess]

Hi Red

I had thought of that, but the table is huge already.

And how do I factor in the cash-back? I suppose I could treat it as a three year term.

I will play around with it.

Brendan

 

[Sarenco]

I think the phrase "effective fixed rate" may be causing some confusion.

Brendan's chart shows the effective cost of credit of various alternatives at a specific LTV over a specific term. And, yes, it takes account of any cash-back offer. The actual rate is shown in the second from last column.

 

[Brendan Burgess]

Hi Sarenco

Would this be a clearer layout?

 

[Sarenco]

That looks much clearer Brendan.

I also like the highlighting of the "best effective rate" in red in each different scenario.

 

[Brendan Burgess]

@Brendan Burgess I think it'd be a good idea to throw in a line at the top with LTV variable rates for the same banks for comparison - the cash backs are also available there, and then we'd have a full view of comparable variable vs fixed rates.

Hi Red Onion

Here is the revised table for <90% with the Variable Rates incorporated.

It's probably useful for you and me. But I think that it makes the table indigestible for most people?

 

[OkeyDokey]

Hi Brendan,

It would be great to see the effective 10 year fixed rates from KBC and BOI.

Could you share the formula you use?

Thanks

 

[Brendan Burgess]

Hi OD

 

[Horatio]

What a great resource, thank you for compiling & maintaining this. Hat's off!

 

[Jameson1]

Hi Brendan,

Is it possible to calculate/provide an 'effective mortgage rate' for the Ptsb offer of '2% cashback at drawdown and 2% cashback on your repayments each month' for comparison purposes?

 

[cpt_boom]

Hi Brendan,

Is it possible to calculate/provide an 'effective mortgage rate' for the Ptsb offer of '2% cashback at drawdown and 2% cashback on your repayments each month' for comparison purposes?

You can calculate this as below for 3 yr fix <90% LTV. Monthly payment is as per ptsb website.