nib offset mortgage - what are the rates?

O

oysterman

Guest
Am in the process of moving my mortgage to nib (a tracker at a really excellent rate). Can't find the rate for their new offset product on their (appalling) website or by googling. Anybody know the rate or have a link? Is it a flat rate or does it fall with increase in amount borrowed or for lower LTV's?
 
Rates as follows:

€50k - €100k 3.19%
€100k - €350k 3.09%
€350k+ 2.99%

The question is do you have enough savings or cash in your current account to justify paying these rates, which are more that NIB's tracker mortgages? They have an online calculator that should help you work the numbers.
 
Thanks Moneybags,

While I haven't gone on their site to use the calculator yet (their site is so dull it seems to drain the life out of me...), at a quick calculation I reckon I'd need to have €26k on deposit with them for it to worth my while to take their offset as opposed to tracker. The day I have that amount of cash.....
 
Have you factored in the average balance of your current account over time? (You get paid €x,000 at the start of the month then withdraw it over the course of the month. Then you get paid €x,000 at the start of the next month. There's still an average balance through the account throughout, plus the value of any savings you may maintain.)
 
Sorry, should have been clearer. When I mentioned "on deposit" I was using that as shorthand for my total non-mortgage position with them. At the sums involved in my case I'm a million miles away from the offset product being attractive versus their tracker.

One other point to consider - old-style mortgages are the classic financial services commodity i.e. the standard of customer service is not of major concern since the lender usually finds it hard to screw up once the mortgage is up and running (keep paying your mortgage and the whole thing usually runs fairly smoothly). Customer service issues are of much more concern in the case of current accounts where poor service can really cause hassle for the customer. For me, the rate should be nearly all you consider in choosing a mortgage provider but the current account choice is more complex.

On the basis of my experience to date with NIB, while I'm still happy to move my mortgage to them, their performance with me to date (I still haven't received an offer in writing even though the loan was, I'm assured verbally, agreed weeks ago; I always have to chase them and my 'contact' is off-site more than he's present etc.) has not instilled the sort of confidence in me that would make me rush to move my current account to them.

In short, while a rate of return equal to a mortgage rate on your average monthly current account balance might make you rush into moving current account provider, I'd look before leaping. A current account run smoothly by an obliging bank official is worth its weight in gold.
 
Offset Savings account

NIB literature refer to savings accounts that can be counted as part of the offset amount.

Is anyone aware what form these savings products take or what rate they pay?

If for example they offerred a deposit account paying 1% this would make the offset product significantly more attractive.
 
Hi,

I left my contact details with NIB last week and they rang me today. In short the rate I was quoted was 2.79%. This would have resulted in 926.80 repayment per month for 25 years for a 200k morgage. I believe that figure is before the morgage interest relief and morgage insurance. From talking to the lady this morgage has a rate which 0.79% above the ECB rate for the duration of the morgage.

This 926.80 seemed better than the 974.63 the EBS quoted me last week for the same morgage amount of 200k. Then again there may be less difficulties with the EBS if I got into trouble, I'm not sure.

-Monnigblower
 
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