NIB mortgage from ECB + .5%

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Krusty2001

Guest
Two quick questions (I'm not being lazy, I'm awaiting an appointment from NIB!):
We're currently 8 years into a 25 year 'with profit endowment mortgage' (Yes, I know! It's all we could afford at the time :eek:) with an LTV of approximately 35%. So:
1) Given NIB's reluctance to allow interest-only mortgage switchers, would we still be candidates for the LTV mortgage?
2) We're planning on continuing paying the endowment, in addition to the new mortgage (with a term of 17 years). Do you think this might be an issue?

Thanks for any advice..
 

serotoninsid

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1,760
The only other cost to be considered would be the stamp duty if the mortgage value is over 254K.
So if the new valuation is over 254K, the home owner is liable for stamp duty?
Does it matter how long they have owned the property?
 

Squonk

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Messages
791
So if the new valuation is over 254K, the home owner is liable for stamp duty?
Does it matter how long they have owned the property?
This can't be true! Stamp duty is not paid on a re-mortgage I had presumed. What house is not valued over €254k??
 

NorfBank

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2,103
It is mortgage deed stamp duty so depends on value of mortgage not property.

Crossed with Techman
 

Squonk

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791
It is mortgage deed stamp duty so depends on value of mortgage not property.

Crossed with Techman
I'm confused. I'm switching to NIB for a mortgage of 350k and a valuation of 700k (50% LTV). What "stamp duty" do I pay?
 

Sunny

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3,539
I'm confused. I'm switching to NIB for a mortgage of 350k and a valuation of 700k (50% LTV). What "stamp duty" do I pay?
If you are just transfering your existing mortgage to NIB, you don't pay any stamp duty. The valuation of the property is irrelevant (apart from deciding what rate you pay with NIB)
 

CCOVICH

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8,831
If you are just transfering your existing mortgage to NIB, you don't pay any stamp duty. The valuation of the property is irrelevant (apart from deciding what rate you pay with NIB)
I think you are still liable for stamp duty on the mortgage deed-anything over €254,000 carries a rate of 0.1%, capped at €630.
 

NorfBank

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Messages
2,103
Stamp Duty of 0.1% is payable on the mortgage deed once the amount of the mortgage is over 254k. Property value is irrelevant.
On a 350k mortgage, stamp of 0.1% is due, whether or not this is covered by NIB I do not know but mortgage deed stamp duty of E350 must be paid by someone.
Mortgage deed stamp duty is capped at E630.

Post crossed.
 

Squonk

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Messages
791
Stamp Duty of 0.1% is payable on the mortgage deed once the amount of the mortgage is over 254k. Property value is irrelevant.
On a 350k mortgage, stamp of 0.1% is due, whether or not this is covered by NIB I do not know but mortgage deed stamp duty of E350 must be paid by someone.
Mortgage deed stamp duty is capped at E630.

Post crossed.
Thanks for the clarification. Anyone know if NIB subsidise the cost of this? Probably not, I'd guess.
 

Helen

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Messages
234
Thanks for the clarification. Anyone know if NIB subsidise the cost of this? Probably not, I'd guess.
No they don't.

Sunny said:
If you are just transfering your existing mortgage to NIB, you don't pay any stamp duty.
Does anyone know the answer to this for sure? I know on an equity release which would bring the total mortgage to in excess of 254K you have to pay stamp - even though the new portion is less than 254K. I just assumed you'd have to pay it on transferring, but maybe that is not the case.
 

efm

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934
Does anyone know the answer to this for sure? I know on an equity release which would bring the total mortgage to in excess of 254K you have to pay stamp - even though the new portion is less than 254K. I just assumed you'd have to pay it on transferring, but maybe that is not the case.
What everyone seems to be taking about here is Stamp Duty on the mortgage - Stamp Duty on a mortgage is payable as the State / Revenue deems a mortgage a stampable financial instrument - when one "transfers / remortages" a mortgage what you are actually doing is closing one mortgage and opening another - so as a new mortgage it will have to go to the Stamp office to be stamped and duty is charged as Norfbank said at a rate of 0.1% on instruments valued above €254k. So to answer Helens question if the mortgage you are getting from NIB is above €254k then you will have to pay stamp duty.

The above is totally unrelated to the Stamp Duty that is payable on the purchase of a house.
 

Mares

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Messages
10
Hi,

Sorry to track back a little, I'm trying to get through this switch process and the guy we're dealing with is on the hard sell all the time.

Can anyone actually clarify:

We are two friends with a joint mortgage. Do we have to set up two Easy accounts or would one account suffice to qualify for the mortgage?

Have been told we must have both wages paid into these accounts. Are NIB entitled to force us to do this?

We have asked for full Terms & Conditions as they are not available online. He's stalling on providing these too. So we're finding it difficult to know where we stand on these two areas.

Many thanks.
 

Squonk

Frequent Poster
Messages
791
Hi,

Sorry to track back a little, I'm trying to get through this switch process and the guy we're dealing with is on the hard sell all the time.

Can anyone actually clarify:

We are two friends with a joint mortgage. Do we have to set up two Easy accounts or would one account suffice to qualify for the mortgage?

Have been told we must have both wages paid into these accounts. Are NIB entitled to force us to do this?

We have asked for full Terms & Conditions as they are not available online. He's stalling on providing these too. So we're finding it difficult to know where we stand on these two areas.

Many thanks.
Myself and my wife set up one easy account with NIB. They were pushing us to use it as our 'primary' account but I fended them off and after some huffing and puffing they admitted that we could just use it as a service account for the mortage only. Thus, we will not be paying our wages into the NIB account.

The downside is that we have been issued with a laser card and there's annual govenrmnet stamp duty on this (€20 I think). Initially, they were trying to give both myself and my wife a laser card each but we compromised at just one card. I'm not even sure if they have a 'right' to force us to take a laser card but the woman we dealt with couldn't proceed with the online application unless we took one (a software issue).

On another point, I got a valuation done and they refused to refund the cost because we are just opening an easy account and not an easy-plus account. I recall reading on the website that they would refund €100 if opening an easy account but this appears to be gone from their website now (or at least I can't find it).

PS I got more straight-forward answers when I rang their helpline at 1890 818 800. This seems to be the "official" source of info. I perceived that the NIB branches have their own individual " agendas"

Hope this helps a little.
 
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D

DMCL1971

Guest
I visited NIB yesterday to transfer my mortgage to their LTV Tracker and all my regular banking to them. Here is what I was told.

Valuation:
You have to have an official valuation on your premises no matter how low you think your LTV might be. If you open an Easy account no money is paid toward the valuation. If you open an Easy Plus account 100 is paid towards the valuation. If you open a Prestige account 150 is paid towards tha valuation. (You give them the receipt for the valuation and they put the money into your new account)

Legal fees:
The helpline told me that regardless of which of the 3 accounts you open NIB would pay all the legal fees if you let them look after the legal stuff. If you want to use your own solicitor they would contribute 600 toward the cost. However in the branch I was told this legal coverage or contribution option only applied to Easy Plus or Prestige accounts.

Switching later:
You are not tied into any minimum term on either your banking or mortgage. If you want to switch your mortgage or banking to another institution a month after you have switched to NIB you can. They will not look for any of the valuation or legal fees to be returned. The mortgage always has to be paid from an NIB account though. So, if you switch banking to somone else you will have to at least leave yourself an Easy account to feed the mortgage.

Payment flexibility:
The mortgage is flexible. There is no penalty for paying off lump sums, overpaying monthly repayments or reducing/increasing the mortgage term.

Account types:
The Easy account has no bank charges.
The Easy Plus account has 18.75 per quarter charges but the account does pay interest on credit balances (1.25% I think).
The Prestige account also has 18.75 per quarter charges but pays a higher rate of interest (1.75% I think).
 

rory

Frequent Poster
Messages
62
I have just changed from NIB's ECB +0.79% tracker to their LTV tracker. While the mortgage advisor outlined the benefits (as she saw them) of the Easy account, there was no pressure to make it my main bank account, or to take a Laser card, etc.
 

Mares

Frequent Poster
Messages
10
Thanks for that input, will press on with trying to open just one account!

Cheers!
 
S

SteelBlue05

Guest
Legal fees:
The helpline told me that regardless of which of the 3 accounts you open NIB would pay all the legal fees if you let them look after the legal stuff. If you want to use your own solicitor they would contribute 600 toward the cost. However in the branch I was told this legal coverage or contribution option only applied to Easy Plus or Prestige accounts.
Just on this, I got different info, I was in a branch yesterday and they said the legal fees offer applies regardless of the account you set up. It would be a bit crap if this only applied when you open an account that has maintenace fees.
 

Squonk

Frequent Poster
Messages
791
Legal fees:
The helpline told me that regardless of which of the 3 accounts you open NIB would pay all the legal fees if you let them look after the legal stuff. If you want to use your own solicitor they would contribute 600 toward the cost. However in the branch I was told this legal coverage or contribution option only applied to Easy Plus or Prestige accounts.
I have been told by both my branch and the helpline that legal fees would be paid even if I opened up 'only' an easy account. This is confirmed by some other comments on this post.
 
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