Improving the variable rate best buys tables

DublinD

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Brendan,

Fixed rates Best Buys

this is a great idea as headline rates aren't always the best deals. Is it possible to have something similar for the SVR best rates incl cashback?
 
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But maybe I could revise it to include the cash back deals.

The difficulty with carrying out a similar exercise for variable rates is you have to make (pretty significant) assumptions that the rates won't change over the relevant periods.
 
I think that all I can do is to present the information for each lender

For someone who is organised enough to shop around, they should choose the best cash back deal and lowest variable rate and immediately switch.

Or choose the second best deal and immediately switch to the best deal or the one which is most likely to be the best.

And somehow incorporate the €3,000 cash back from KBC for switchers with the 2% cash backs from ptsb, EBS and BoI

I will play around with it a bit.

Brendan
 
Hi DD

It was easy enough to adapt the Fixed Rate Best Buys tables.

Are you looking at taking out a mortgage or switching? If so, does this table help?

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Maybe I should have three separate threads

<90% Best Buys - Fixed and Variable

60% - 80% Best Buys - Fixed and Variable

<60% Best Buys Fixed and Variable

If you are taking out a 90% mortgage, the rates on offer to people borrowing less than 60% LTVs isn't relevant. A comparison of fixed and variable might be.
 
I think it would make more sense to keep fixed and variable rates at various LTVs in two separate threads but to include a link between these two threads. Mixing fixed and variable rates together in a single "Best Buy" thread gets very confusing IMO.

It might also make sense to include a link to a third thread on factors to consider when choosing between a fixed and variable rate mortgage.

Also, as a practical matter it may not be possible to immediately switch between lenders - I gather most lenders will not refinance a loan that is less than 12 months old.
 
The way I am thinking of it, I would have everything relevant to a 90% LTV buyer in one thread, so they would not have to switch between threads.

I would have the key points of "fixed vs. variable" but link that to a separate thread.

Agree on the 12 months.

The further complication is that I would expect that cash backs will be banned within 12 months. So it's a good reason for choosing long-term value now.

Brendan
 
Something more indeed.

It's in the Fianna Fáil bill which has passed two stages.

The CPPC said that they should be reviewed.

So it would be unlikely that the government would oppose it.

Brendan
 
Interesting, I missed that.

If I've read the draft bill correctly now, they've made provision to allow a lender to make a one-off payment to cover legal costs and/or stamp duty on a vouched basis?

So we might still have cash backs, but on a different basis?
 
If I've read the draft bill correctly now, they've made provision to allow a lender to make a one-off payment to cover legal costs and/or stamp duty on a vouched basis?

That was also my memory of the relevant provision in the draft FF Bill. Frankly, I thought it was a daft proposal - it would be very costly to administer/police.

I was surprised that the Central Bank didn't prohibit cash backs deals when they introduced (or at least when they subsequently reviewed) their mortgage restrictions.
 
Good point - cash back effectively allows people to circumvent the LTV controls to a small extent.
 
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