Mortgage rate 'war'

Discussion in 'The Fair Mortgage Rates Campaign' started by dave2015, 12 Dec 2017.

  1. dave2015

    dave2015 Registered User

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    Feels like a lull in the rate reductions compared to earlier in year when seemed like some bank was reducing every few weeks, have we reached the bottom or more likely banks are pausing for assessment? Has it something to do with the cash incentives, is there still a likely change there to come down the line?
     
  2. renter45

    renter45 Frequent Poster

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    I wonder will we see more sub 3% terms for 7 or 10 years next year as a final push for banks to lock in customers.
     
  3. qwerty5

    qwerty5 Frequent Poster

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    It's probably a bad time of the year now. Any business I've worked in didn't make any major changes in December. Everybody's thinking about Christmas, and probably wouldn't be thinking about switching.
     
  4. cliqueentour

    cliqueentour Frequent Poster

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    Aren't the cashback lump sum offers being made illegal?
     
  5. WorstPigeon

    WorstPigeon Frequent Poster

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    AIB did one a couple of months ago, as did Ulster Bank. December’s probably not a good time of year for it; not that many people buying, or paying attention.
     
  6. Donnie

    Donnie Registered User

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    Its mid Feb now and the variable rate reductions have remained static and very little talk about the proposed Mortgage rate Bill for a number of months now and it may be a dead duck now at this stage.

    So with that in mind what are peoples view about the variable rate environment in Ireland over the next few years and if there will be more rate reductions over the coming years? ECB rate is at a all time low and will remain flat probably for a few further years so Irish lenders in theory in theory should not increase variable rates for a year or two?

    On a nice variable rate at the mo with Ulster Bank of 3% but thinking of fixing with UB as there are some very appealing rates. I am eligible for a fixed rate for 4 years with UB at a rate of 2.6%.

    Just wondering what other peoples thoughts are about the future 2-3 year outlook on the variable rate environment ?
     
  7. Gordon Gekko

    Gordon Gekko Frequent Poster

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    In my view, it’s dependent on the arrival of a new entrant; as things stand, it’s hard to see the current bunch delivering what’s really required which is a sub-2% rate. I pay 2.5% and I can’t see myself losing out.
     
  8. username123

    username123 Frequent Poster

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    On 2.95% variable myself with AIB. Can't really see it going down much more. I'm hoping it'll remain static until 2020 and then ill reconsider my approach.
     
  9. RedOnion

    RedOnion Frequent Poster

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    Personally, I be jumping at the 2.6% fixed rate.
    I believe there will be rate reductions this year, but I can't see variable rates for the lowest LTVs going under 2.5%. the competition will be for market share of new business which is at the 80 - 90% LTV, so I'd expect those rates to drop below 3%.

    In the current rate cycle, wholesale rates are only going to increase, so if we do see mortgage rates drop it will cost you little or nothing to break out of the fixed rate early.
     
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  10. Sarenco

    Sarenco Frequent Poster

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    Agree with Red.

    I would be surprised if AIB don't make another move before the end of March - they are losing too much market share to just stand still.

    Incidentally, I think the FF mortgage bill is dead in the water. It's a shame that they wanted to give the Central Bank price-fixing powers rather than simply trying to provide a degree of protection to borrowers that cannot switch provider.
     
    RedOnion likes this.
  11. gnf_ireland

    gnf_ireland Frequent Poster

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    Agree on this. This is predominately switcher market territory and we simply don't have an active enough market to warrant it, although I would have thought a headline rate of 2.3% may be good marketing material for a bank !!

    The question is whether they will cut rates of some up with some other novel approach to do this - for example a semi-offset mortgage for say 5-10% of the mortgage balance etc? I am not sure rates alone work at the moment given how successful cashback has been

    Have to agree with you here. I don't see anything on the horizon that really makes this look like it going to happen any time soon
     
  12. Paul Reilly

    Paul Reilly Frequent Poster

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    Where are ye getting all these low rates

    My Permanent TSB managed Variable Rate of 4.3% can be reduced to 4.2% if I go to a Fixed Rate (which im not, yet anyways)

    But I see you guys are quoting 2.6 and 3%.

    Then I look at report on RTE website and they are quoting 3% fixed rates and variable rates but dont mention permanent TSB rates in their report.

    Why is this?
     
  13. Sarenco

    Sarenco Frequent Poster

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  14. Paul Reilly

    Paul Reilly Frequent Poster

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    cant as of yet as LTV >90% and prob still negative.

    But why didnt RTE print them on their report. Surely PTSB are as big a mortgage provider as KBC

    Also is there any site that shows a lost of the "real" rates for the thousands of borrowers in negative equity and not just the less than 90% LTV ones
     
  15. Sarenco

    Sarenco Frequent Poster

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    cremeegg likes this.
  16. Paul Reilly

    Paul Reilly Frequent Poster

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  17. Sarenco

    Sarenco Frequent Poster

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    I'm afraid you will have to contact the journalist that wrote that piece if you want a more definitive answer.
     
    MrEarl likes this.
  18. username123

    username123 Frequent Poster

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    Perhaps they are just giving a flavour. This is exactly why sites like this exist :D
     
  19. Gordon Gekko

    Gordon Gekko Frequent Poster

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    I think that elements of that article are inaccurate; for example, my understanding is that Ulster Bank will allow me to repay up to 10% of my 2.5% fixed rate mortgage per year, rather the 5% referred to in the article.
     
    RedOnion likes this.
  20. RedOnion

    RedOnion Frequent Poster

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    Indeed. There are a number of inaccuracies / weaknesses in the article. A bit of a missed opportunity in my opinion.