Mortgage rate 'war'

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

  1. Sarenco

    Sarenco Frequent Poster

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    I think that's a fair statement, particularly when you take the cashbacks into account.

    For example, PTSB's High Value 3-Year Fix <60% LTV has a notional rate of 2.95% but an effective rate over three years of only 2.17% when you allow for the cashbacks (2% at drawdown, plus 2% of each monthly mortgage payment).
     
  2. RedOnion

    RedOnion Frequent Poster

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    Ah, my bad - I looked at the rates in headline table rather than their high value rates.

    I've looked at it properly now, and withdraw my comment.

    Factoring in the 2% refund of repayments makes them attractive for some scenarios, particularly the 3 year term.

    It makes no sense that their 5 year notional rates are lower than shorter terms, but results in decent rates, although the 3% cashback from BoI is still a lower effective rate.

    The best buy tables are getting more complex to maintain!
     
    Sarenco likes this.
  3. Sarenco

    Sarenco Frequent Poster

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    Absolutely, there are a lot of variables at play.
     
  4. Gordon Gekko

    Gordon Gekko Frequent Poster

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    One would almost think that the banks are seeking to profit from the confusion that they create.
     
    Dauhee likes this.