Interest rate on Irish Nationwide investment loan

P

paulkeano

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Hello,

I have an Investment mortgage with Irish Nationwide Bank. I took out the mortgage with them 2 years ago as they were the only bank that would approve me at the time. Basically I was buying a new home and keeping my existing one therefore requiring an investment mortgage. INBS approved me for boh and took over my mortgage at pretty high rates. since they were the only bank that would approve me and I was getting a good enough deal on the house, I decided to proceed.
Anyways, my current interest rate on the investment property is 4.48%
Looking at their website, the Residential Investment Rate is 3.98% for properties where LTV is < 70%
When I took out the loan, the propert value was quoted at 350,000 and the mortgage was 240,000. I have rang the Nationwide and they tell me that I can write and apply for a review of the rate. My question is as follows: Can the bank quote fifferent rates to different customers ar are they obliged to give me the publicly quoted rate at the very minimum.
Any help here would be greatly appreciated.
Thanks,
PK.
 
You have two mortgages.

Home Loan
The Irish Nationwide stated public policy is that they give their standard variable rate to all new customers. If they are in breach of this policy, let us know. Their Standard Variable Rate is 4.1% APR and this is the rate that your home loan should be on.

Residential Investment Loan
Despite what their website says, their policy is to "negotiate each loan separately". They can charge you what they like. Between 1993 and 2003, general rates fell by 10%, but the Irish Nationwide passed on only 5% to existing customers.

You can make a case for a reduction, but they can refuse you if they wish.
Be very careful that the Home Loan is classified as such. If it's not, you will not get the windfall when the society demutualizes.

Brendan
 
Hi Brendan,

at the time of taking out the loan, the bank insisted that the Home Loan be taken on a 3 year fixed rate of 4.2%. With interest rates as they are now, it may not have been too bad an option. I asked at the time was it possible to stay on a variable rate and this request was turned down. At the time, I do not believe the bank was offering any type of discount for new business for any period.

Thanks for the information and I will write them in any case in regards to the Residential Investment Loan.
 
Hi Brendan,
Can you tell us a bit more about these classifications you're talking about. Should this be specified somewhere in the mortgage contract?
You say you should have 'home loan' classification. What are the other classifications?
Commercial? Any others?
 
They have home loans and non-home loans.

Home loans have a standard variable rate. Non home loans can be charged whatever the Irish Nationwide likes. They say that there are no standard rates and no schedule of rate changes.

Brendan
 
Just to be extra clear Brendan... is it possible to have a residential investment loan be classfied as a "home loan" and therefore qualify for the windfall?
 
Hi Yanklink,

I suppose another way of finding out if people with a residential investment mortgage are going to qualify for a windfall is find out do any of these people get invited to the agm each year. If they do they are shareholders and therefore qualify for a windfall.
So is there any people out there who only have a residential investment mortgage with INBS annd no other savings accounts or mortgages.
If so do you get invited to the agm each year?
 
I have 2 mortgages with them.
1. Residential Investment Mortgage
2. Home Loan

I have not been invited to the AGM despite having the 2. Is this normal?
 
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