NIB mortgage from ECB + .5%

Dinarius

Frequent Poster
Messages
459
I too got in contact with EBS re the NIB product.

We have 9 years left on our mortgage (LTV of around 18%) and a balance of €112K.

When I contacted them (by email) I was told “unfortunately you are not eligible for a tracker rate.
An LTV of 18% and you're not eligible for a tracker mortgage?!

I'm speechless!

I left EBS last year for AIB. EBS are old school tossers. The ONLY reason for being with them is the possibility that they will give up their mutual status and go private, thus given a lump sum bonus to all their account holders. Otherwise, avoid them, IMHO.

D.
 

NorfBank

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Messages
2,103
De Barr you are eligible for a tracker rate but it is a tracker of ECB + 1.25%. EBS grade their preferential rates by Loan to value and mortgage amount. To qualify for preferential rates your mortage amount must be over 250k.
I agree that the EBS rates are very high but they lend more than most lenders.
 

DeBarr

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Messages
86
De Barr you are eligible for a tracker rate but it is a tracker of ECB + 1.25%. EBS grade their preferential rates by Loan to value and mortgage amount. To qualify for preferential rates your mortage amount must be over 250k.
I agree that the EBS rates are very high but they lend more than most lenders.
All loan amounts with LTV <=100% in EBS qualify by default for a tracker with a margin of 1.25% - the same as their variable rate so in effect there is no value to this product for someone with a low LTV. It was actually their exact words in the email that said I didn't qualify for a tracker mortgage.

As you said to qualify for a preferential rate you must borrow at least 250K so they do not have a competitive product for someone who is at the lower LTV end of the market which presents minimal risk to them.

NIB are obviously looking to mop up the very low risk, low LTV market and fair play to them - they have spotted a gap and have gone for it.

EBS basically told me to do nothing....
 

MandaC

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Messages
1,784
I had my appointment with NIB this morning in Blanchardstown. Very professional. Approval should issue within a few days. Even though it is a new mortgage (house purchase) as opposed to a switcher, they will still pay €600 towards my solicitors fees (I asked twice and was told this) - so happy days.

Probably wont qualify now. They were adamant that I had to open a current account - think i will go for the "Easy" one.
 

Dinarius

Frequent Poster
Messages
459
Question..........

1. Our one year fixed with AIB has just come to an end and I have received a letter asking us which mortgage rate/product we would like to move to now.

Our mortgage started out last year at €300k over 20 years.

With 19 years remaining, AIB are offering us a <60% tracker of €1837.29 per month. (Interest rate 4.2%. APR 4.27%)

I have just used the NIB mortgage calculator (a little annoying that links cannot be posted on this site, by the way) and inputted a valuation of €1.1m, loan amount of €300k with a 19 year term and got an answer of €1841.71 per month. (Interest rate: 3.82%)

Allowing for the fact that we now owe AIB less than €300k, I would still have expected the NIB product to be cheaper. What am I missing here?

2. AIB have offered a three year fixed of €1921.30 per month, a difference of €84.01 over the tracker. [NIB is €1953.40] If the ECB increases rates next month by 0.25%, how much would that increase the tracker cost by? €84 a month is small beer for three years of security, particularly if it will be a lot less in four weeks time.

Many thanks.

D.
 

marksa

Frequent Poster
Messages
362
Question..........

1. Our one year fixed with AIB has just come to an end and I have received a letter asking us which mortgage rate/product we would like to move to now.

Our mortgage started out last year at €300k over 20 years.

With 19 years remaining, AIB are offering us a <60% tracker of €1837.29 per month. (Interest rate 4.2%. APR 4.27%)

I have just used the NIB mortgage calculator (a little annoying that links cannot be posted on this site, by the way) and inputted a valuation of €1.1m, loan amount of €300k with a 19 year term and got an answer of €1841.71 per month. (Interest rate: 3.82%)

Allowing for the fact that we now owe AIB less than €300k, I would still have expected the NIB product to be cheaper. What am I missing here?

2. AIB have offered a three year fixed of €1921.30 per month, a difference of €84.01 over the tracker. [NIB is €1953.40] If the ECB increases rates next month by 0.25%, how much would that increase the tracker cost by? €84 a month is small beer for three years of security, particularly if it will be a lot less in four weeks time.

Many thanks.

D.
You have quoted 1837 for AIB on 4.2%. This would be based on the remaining principal for 19 years which using www.Jeacle.ie gives an approximate remaining principal after your 1 years payments of 289k. In your calculation in the NIB site you have used the 300k for 19 years. For true comparison you should use 289k, which gives a repayment of 1,774.

Looking at the fixed rates, NIB's 3 year is weighted by 17 years at their higher standard variable rate of 4.59 ( i think AIB's is approx 4.45 ish). Here you should really look at the 3 year rates exclusively, as you can always restructure after the 3 years.

If you are looking at the ECB tracker rate, you should price in a 0.25% increase next month in your calculations for both Banks. If you are looking at the fixed, then I would suggest that the NIB 5 year offers better value than the 3 year - similar rate. All depends on whether you intend to move in the next 5 years or restructure.
 

K-Man

Frequent Poster
Messages
69
I currently have my v.low LTV mortgage with AIB and have just purchased a new PPR at auction so have been trying to decide which lender I will take out my new main mortgage from. I currently have 3 courses of action on the go :

1. I have quotes (not good ones from a couple of months ago) from AIB directly for my new mortgage and have banked with them for 15 years or so - so good long standing relationships there
2. I have engaged a broker that will hit First Active, RBOS etc.
3. I have engaged directly with a manager at NIB

I have no allegiances and will take the best offer, which is currently that offered by NIB.

- I am about to make the call to AIB to request their 'best offer' given the NIB deals available
- I have made my broker aware of what NIB is offering and have asked her to get out there and match it
- If neither of these guys can match NIB's offer then AIB and Broker lose out - end of

I'll let you know what happens.
 

Dinarius

Frequent Poster
Messages
459
If you are looking at the ECB tracker rate, you should price in a 0.25% increase next month in your calculations for both Banks. If you are looking at the fixed, then I would suggest that the NIB 5 year offers better value than the 3 year - similar rate. All depends on whether you intend to move in the next 5 years or restructure.
Yes, that's why I am thinking of fixing, because a chunk of the premium will disappear next month.

Five years? Not so sure. Though anyone who did that 12 months ago is laughing now.

Thanks.

D.
 

serotoninsid

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Messages
1,755
One thing I forgot to ask NIB - With their tracker, is it safe to assume that theres no penalty for addional payments/paying off early??
 

MandaC

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Messages
1,784
I dont think there are any penalties with the tracker. I asked about over paying and paying off lump sums. The advisor told me that most people fix their payments, eg, my mortgage will work out about €820 per month, so I intend to pay €1,000 to reduce the term. They said no problem with that.
 

Daddy

Frequent Poster
Messages
715
I have an NIB - ECB variable tracker mortgage.

I intend to switch over to its LTV morgage as LTV less than 50%.

I have a current a/c with NIB also but will be required to open an 'Easy' a/c to feed the LTV mortgage.

I have been told opening of this Easy a/c will cost me nothing. The Easy a/c will be used for nothing else.

I do have to get my property valued for the new LTV product though.

Anyone in my boat who has negotiated non payment of the valuation fee or a €100 allowance towards it or do I have to stump it up.
 

MandaC

Frequent Poster
Messages
1,784
Any ideas how quick they get back to you with approval given that they are snowed under. I had my appointment last Thursday, so havent heard anything back. Also, on the valuation, can I ask any EA who is a member of IAVI.?

Contracts have just been issued on my new house, but I havent done the valuation yet on the LTV mortgage, will obviously need this in hand before my loan offer letter is issued.
 

Dinarius

Frequent Poster
Messages
459
Reports in the finanacial press today that the ECB may be close to the end in this round of interest rate increases.

In a bit of a quandary now..........

AIB's offer of 3yr and 5yr fixed is on the table at 1921.30 and 1943.01, respectively.

NIB would cost 1881.78 and 1884.78.

Both for €289k over 19 years.

However, by the time I get approval (it seems I can't even meet someone in my branch until Nov. 22) the ECB will have raised rates again. So, the both banks will have raised their rates, but the NIB cost will be about €35(?) closer to what the AIB cost is now.

Two more rate rises, and I will be wishing I had taken the AIB offer, without waiting for NIB.

Suggestions on a postcard, please........! ;-)

D.
 

FiveFingers

Frequent Poster
Messages
52
Can we return to the point about NIB requesting invoices as proof of work being done in the event of a top-up?

We currently have a mortgage with NIB (ECB +.79) and wish to build an extension to our house which we will finance by getting a top-up with NIB. We are currently in the process of getting quotes from builders (purely because this is a requirement of NIB). However, we had intended to go the direct labour route (friends in the trades), which means that we may not be able to provide invoices. Where does that leave us? Will we HAVE to use a builder/tradesmen who can give us an invoice?
 

MoiMoi

Frequent Poster
Messages
58
I try to approach my bank yesterday (FirstActive), i got a reply saying they will call me back and never heard from them. Will definitively switch to NIB for sure.
 

ronny78

Frequent Poster
Messages
99
FiveFingers,

Last year we did the same thing and topped up an ECB + 0.79% mortgage with NIB to carry out some work on the house, in the region of €15k. They did ask for prices up front. However a one page description of each item of work with a price beside it, printed out and signed at the end of the page by myself, was sufficient. The amount added up to the total amount we were requesting. Once the top up on the mortgage was approved, the money was deposited in our account and we used it at will to pay for the work. There was never any question thereafter about producing invoices. Maybe it depends on the branch or the mortgage advisor but everything seems so centralised with NIB I can't imagine it wouldn't work the same for you. I definitely got the impression from our dealings with them at the time that equity release was treated slightly differently.
 

Moneypit

Frequent Poster
Messages
166
Any ideas how quick they get back to you with approval given that they are snowed under. I had my appointment last Thursday, so havent heard anything back. Also, on the valuation, can I ask any EA who is a member of IAVI.?

Contracts have just been issued on my new house, but I havent done the valuation yet on the LTV mortgage, will obviously need this in hand before my loan offer letter is issued.
I met with NIB on the Wednesday, they said I should know hopefully by the Friday, Monday was the bank holiday and I found out on the Tuesday afternoon. I did keep emailing them and told them how urgent it was.
You can go to any IAVI EA, just get them to complete the NIB valuation form which can be downloaded from their website. I picked a Valuer who is also on the PTSB and BoS panel just incase NIB turned us down and explained that to the Valuer beforehand. Once I got approval then I asked the Valuer to complete the NIB form. It takes 5 working days for the loan pack to be issed to you from their mortgage processing unit in Belfast.
HTH.
 
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