NIB mortgage from ECB + .5%

Brendan Burgess

Founder
Messages
41,754
press release from NIB:

National Irish Bank Transforms Mortgage Pricing in Ireland
·Unique New Mortgage Pricing Model Launched – LTV Mortgage links interest rate to home values
·Margins from 0.50% - less than half of what many mortgage holders currently pay
·Available across full range of ECB Tracker and 2, 3 and 5 year fixed rate mortgages
·Approach based on successful Danish model - National Irish Bank’s parent Danske is the leading mortgage player in Denmark

17th October, 2006. National Irish Bank has today announced a ground-breaking approach to mortgages which has the potential to deliver substantial financial savings to thousands of Irish home owners. As an addition to its already powerful range of recently launched customer packages, the new LTV Mortgage (Loan to Value) pricing model directly links the interest rate to the value of the property. The greater the property value over the loan, the lower the interest rate.

With the rapid increase in house prices over recent years, the LTV Mortgage will be particularly attractive to home owners who have built up equity in their home, particularly those on a standard variable rate mortgage with their existing lender.

Typically today, lenders offer standard variable rate mortgages at an interest rate which equates to a margin of up to 1.35% over ECB. National Irish Bank’s unique tiered pricing model offers a margin ranging from 0.50% to 0.59% depending upon an individual householder’s LTV. This makes the new LTV Mortgage pricing model the most competitive and most innovative in the Irish market today.

The pricing structure is available on mortgages up to 80% LTV and works as follows:

·A margin of 0.50% is applied to the first portion of the loan up to 50% LTV
·A margin of 0.60% is applied to the next portion of the loan up to 60% LTV
·A margin of 0.80% is applied to the final portion of the loan up to 80% LTV

For many of Ireland’s home owners, savings in their repayments could be more than €1,500 per year or €28,000 over the life of a €250,000 mortgage – assuming 18 years remaining on a house valued at €500,000.*

The new pricing model, which is available as part of National Irish Bank’s Easy, Easy Plus and Prestige personal banking packages, applies to its full range of ECB Tracker and 2, 3 and 5- year Fixed rate products - so the customer has excellent choice. Customers can also choose between Capital & Interest on loans up to 80% LTV and Interest Only options on loans up to 60% LTV.

The new LTV Mortgage is available only for principal private residential mortgages with a loan to value up to 80%. It will not apply to investment properties.

To make switching mortgages easier, National Irish Bank has introduced a new switching service in partnership with First American, which is part of IFG Group plc. First American are providers of title insurance which is the legal process that facilitates moving a mortgage from an existing lender to National Irish Bank. The switching costs will be paid by National Irish Bank (excluding Government stamp duty). In addition, customers who take an Easy Plus or Prestige personal banking package will receive a contribution of €100 and €150 respectively towards their house valuation fee when taking out the LTV Mortgage.

Every 3 years, customers will have the opportunity to adjust the rate of interest they pay by getting a new valuation completed to determine their new loan to value. This allows customers to benefit from continuing increases in the value of their home or from lump sum repayments on their mortgage. In the case of a customer who has opted for a fixed rate LTV Mortgage the review can take place at the end of the fixed rate term (subject to a minimum of three years).

National Irish Bank’s personal banking packages

National Irish Bank’s approach to pricing and value in consumer banking is centred on personal packages which group the specific services a customer requires. Five personal banking packages are available – Personal Access, Freedom and Easy (no maintenance fees); Easy Plus and Prestige (€75p.a. and €125p.a. respectively). Transaction fee free banking for credit or debit accounts are the norm with minor restrictions in certain circumstances. National Irish Bank’s market leading pricing includes the same rates for overdraft and credit cards, with rates ranging from 8.8%APR to 10.2%APR. Current account credit interest rates also lead the market for the top two packages at 1.50% and 2.25%. Arrangement fees for overdrafts have been removed as indeed, uniquely, have referral fees.
 

AJC

Frequent Poster
Messages
163
Great to see something like this at last.

Pity that they are relatively stingy re the amounts they will advance - especially if both partners earn roughly the same.
 

AJC

Frequent Poster
Messages
163
Anyone know if they have changed their policy from (3.8 x one earner plus 1 x second earner) ?

The seem to refer to a maximum 40% net income calculation on their new website...
 

infinity

Frequent Poster
Messages
80
I must approach my own lender (Permanent TSB) and see what they say. Currently paying 4.35% (ECB + 1.1%). My LTV is 60%.

Has anyone approached their own bank looking for a deal in light of this ?
 
G

Gumper

Guest
I am currently in the process of switching my mortgage from Ulster Bank ot NIB, and was just off the phone with my local NIB branch. My LTV will be exactly 80%, with the overall rate then being ECB + 0.59%.
 

Carmel

Frequent Poster
Messages
252
So this is available to switchers as well?

Can someone tell me how they decide on the value of your house? Do they send someone around to do a valuation? Based on recent property prices in your area?

Thanks
C
 
M

Miles

Guest
I am currently in the process of switching my mortgage from Ulster Bank ot NIB, and was just off the phone with my local NIB branch. My LTV will be exactly 80%, with the overall rate then being ECB + 0.59%.
Have Ulster Bank offered to match the NIB offer? Would be interested to know as I have an LTV of approx 80% also.
 

3ps

Registered User
Messages
32
carmel they have all that info on their website.
they pay legal fees or contribute if you use your own sollysitter.
you get the valuation done.
 
J

JOHNBOB50

Guest
This still does not beat Bank of Scotland IRL's ECB+0.45% for first 2 yrs.
 

MugsGame

Frequent Poser
Messages
2,542
Thanks for that John -- BoSI only offer this for LTV under 75%, and NIB's offer lasts for the lifetime of the mortgage.
 

Brendan Burgess

Founder
Messages
41,754
I have added some more information at the bottom of the first post.

You need to have an NIB current account, but that is ok as they are good value with a good internet offering.

They will contribute to the costs of switching as follows:
The switching costs will be paid by National Irish Bank (excluding Government stamp duty). In addition, customers who take an Easy Plus or Prestige personal banking package will receive a contribution of €100 and €150 respectively towards their house valuation fee when taking out the LTV Mortgage.

I have no information on their fixed rates. They offered to fax it to me, which I think is odd for a company with such a good IT platform.

Brendan
 
G

Guest111

Guest
My first post...hello there.
This seems to be a fantastic offer. The only cost to the customer will be the stamp duty element of the remortgage.
More importantly it's going to rattle the cages of the other banks.
Personally I'm going to adopt a wait and see approach as this has to be the opening shots of a mortgage war.
 

YouNeek

Frequent Poster
Messages
85
BoSI
- Contribute 1000 towards legal fees
- You pay for valuation (by one of their approved valuers) and they reimburse you.
- Rate is ECB + .45% for first 2 years, and ECB plus 1% thereafter
- Claw back 1000 if you switch from them within first 5 years of mortgage.
- No need for any other BoSI accounts.

NIB
- Will pay legal fees, or contribute 600 if you use your own solicitor
- Site says " A further professional valuation will be required at this time", but doesn't say who pays.
- Rate varies, depending on LTV, but it's ECB plus X for lifetime of mortgage (for tracker product).
- No mention of clawing back € 600 if you switch
- You must sign up for one of their banking packages - Easy, EasyPlus or Prestige.

I must approach my own lender (Permanent TSB) and see what they say. Currently paying 4.35% (ECB + 1.1%). My LTV is 60%.

Has anyone approached their own bank looking for a deal in light of this ?
I approached my own bank and told them of the offers available with the competition. Their attitude was that for a mortgage of a couple of million, they'd do a special rate, but for a smaller amount, it wasn't worth their while to facilitate customers on an individual basis.
 

serotoninsid

Frequent Poster
Messages
1,755
I approached my own bank and told them of the offers available with the competition. Their attitude was that for a mortgage of a couple of million, they'd do a special rate, but for a smaller amount, it wasn't worth their while to facilitate customers on an individual basis.
Thats fair enough but if theres a better deal on offer, then do the paperwork and take it thats my attitude. I've been trying to get UB to drop me down to the lower tracker rate (i am now in the lower category LTV due to equity buildup in property) for the last eight weeks and not getting a response from them.
Just mailed them to say that I will go with NIB's new deal if they dont get back to me (its one thing not to be able to match the competition but to not even send a two sentence email to respond to a customer - that really annoys me).
 
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