in a recent discussion with my bank, they are suggesting that i change my 165k mortgage at variable rate of 5.35% to a tracker style mortgage, i have 19yrs left on the mortgage, i basically don't trust the bank and feel suspicious when the bank suggest something, any one got any suggestions. Johnboy45
Tracker mortgage v's variable
- Thread starter Johnboy45
- Start date
You are currently paying 1.35% above ECB which is very high, today you could get a tracker rate of ECB + .5%.(if your LTV is < 50%, a bit more on higher LTV's) On €165K over 19 years you would save €76.40 monthly or €17,419 over the 19 year term. You surely have scope for substantial savings here. Shop around if not happywith current provider.
0.8% is a good rate and much better than the one you are on
It will save you nearly €50 a month. Take it asap.
There are no disadvantages to taking a tracker rate over a variable.
Trackers are generally lower
Other banks may have better rates, but take what your bank is offering while you check it out.
It will save you nearly €50 a month. Take it asap.
There are no disadvantages to taking a tracker rate over a variable.
Trackers are generally lower
Other banks may have better rates, but take what your bank is offering while you check it out.
Tracker rates go up and down in line in line with ECB rises. Variable rates change but at the descretion of your lender, but normally in line with ECB. However, BOI has just increased its variable rate recently without a similiar move by ECB:
See:
[broken link removed]
I'm not sure if these changes probably apply to all variable customers but the changes to the tracker rate are only for new customers as existing customers have a fixed margin above the ECB rate.
The value of your home is €450K but what do you have left to pay on it? This determines your LTV ratio and is used to determine what rate you can obtain.
See:
[broken link removed]
I'm not sure if these changes probably apply to all variable customers but the changes to the tracker rate are only for new customers as existing customers have a fixed margin above the ECB rate.
The value of your home is €450K but what do you have left to pay on it? This determines your LTV ratio and is used to determine what rate you can obtain.
Reading this post, I checked out my own mortgage.
I owe 177k with 27yrs remaining, at a variable rate of 5.25.
I checked the providers website and there is a tracker rate of 4.8 for my LTV and my loan amount.
It also says however that the rates quoted are for new business.
Should I ring them and ask for the lower rate, or would it be in peoples experience that you need to change providers to get a lower rate.
Thanks
I owe 177k with 27yrs remaining, at a variable rate of 5.25.
I checked the providers website and there is a tracker rate of 4.8 for my LTV and my loan amount.
It also says however that the rates quoted are for new business.
Should I ring them and ask for the lower rate, or would it be in peoples experience that you need to change providers to get a lower rate.
Thanks
No, ring them. You will be amazed how nice they will be when you mention moving your business!
No harm ringing them to check - say you are considering changing lender as the rate you are currently getting isn't competitive for you LTV ratio and see if there's anything they can do, I'm sure they will be willing to negotiate.
I
irishlinks
Guest
Dobsdave- well done for getting them down a bit - but you could have got a better rate. By my calculation you will now be repaying around 991 a month to EBS. (177k over 27 yrs) You may be paying less than you were on the variable rate (about 30 euro a month) - but you could have done better by moving elsewhere. You must have an LTV of between 60 and 80% according to the info you gave earlier. You could have got a rate of 4.53 off NIB on an LTV of just over 60% - a potential saving of 44 euro on the new rate EBS|have given you. (Total saving based on the original rate of about 74 euro a month or about 900 a year) Even Halifax would have given you a better tracker rate of 4.7%. Both of these lenders would pay legal fees too.
Correct Clubman.I'm not on a fixed rate.
Irishlinks, thanks for the info.
My problem at the moment is I'm working in Germany until June.
And no matter how easy they make out, changing your mortage isn't just signing on the dotted line.
I will definitely be making further enquiries come June.
Thanks for all the help.
Why? What potential hassle are you seeing?
Sorry, I didn't write what I meant!
Looks like I was trying to say that signing a form was a big hassle!
As I explained I'm in Germany untill June, coupled with my work load, trying to organise a change of mortgage provider would be a hassle for me at the moment.
Rest assured I will be making further savings in June
.Sorry, I didn't write what I meant!
Looks like I was trying to say that signing a form was a big hassle!
As I explained I'm in Germany untill June, coupled with my work load, trying to organise a change of mortgage provider would be a hassle for me at the moment.
Rest assured I will be making further savings in June
why not get them to fax over the docs, you sign them and then post them back. That is hardly a lot of hassle and could potentially save you 385 between now and june. I completed my mortgage application from the Netherlands and it cost me about €2 for a postage stamp.
Alternatively for the small fee of €385 tell me where to be and when and i will forge your signature
(obviously joking mods!!!!!)Reading the thread, can I just ask this question, I only took up a mortgage in November with ptsb on the tracker rate of 5.1%. At the time they offered the best interest rate for a first time buyer with 100% mortgage. The question is could changing of mortgage provider for a better rate be an option at this stage. I am just curious, the amount is €197k over 34years.
I wrote to my PPR lender AIB last week to ask to be put on the lower Tracker rate, within 2 days we had confirmation that the next installment will be reduced by about €100.
In fact we were probably entitled to be on the lower rate for some time but it was only when i as talking to someone in there that they pointed it out.
In fact we were probably entitled to be on the lower rate for some time but it was only when i as talking to someone in there that they pointed it out.