Danske Reduce Rate to 4.75%

E

Eureka101

Registered User
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I recieved a letter today from Danske informing me that as of 23/12/16 they have reduced the SVR from 4.95% to 4.75%...

Whilst a reduction is a postive sign and obviously welcome, it appears more of a token gesture as still no apparent reason for the rate to remain so high.

Have any other forum members received this notification?
 
Hi Eureka

I saw a notice in one of the papers last week re that reduction.

Better than a kick in the pants I suppose but it certainly looks like nothing more than a token gesture to me.

Any chance at all that you might be in a position to switch lenders in the relatively near future? 4.75% really is an outrageous mortgage rate in the current environment.
 
Hi Sarenco,

Switching is top of my list this year as close to 90% LTV now, although a bit concerned about being 'means' tested as i now have 2 kids both in childcare which I didnt have when i took original mortgage 9 years ago..
Im aware i cud be paying 3.5% with AIB including €2000 cashback which wud make a huge difference to us finacially regarding monthly payments and the impact that wud have on our disposal income..
Just need to find an estate agent who will value my house at the price i need and then hope the banks valuation is the same as there is no guarantee it will get beyond the first post when i am desperately trying to achieve that magical 90% LTV
In reality i probably need my LTV to be closer to a 85% LTV ( to achieve a realistic 90% LTV mortage ) to allow for the possibilty of the banks valuation being on the conservative side.

In this instance, wud you know if its beneficial to use a broker to increase the chance of both valuations being 'agreed' as i wud presume the broker wud be keen to see the deal completed to receive a commission.
 
I think it would make a lot of sense for you to discuss your possible options with a decent mortgage broker.

It would be great if you could report back to let us know how you get on - I really do hope you can escape that horrible mortgage rate ASAP.
 
Hi all.

Agree that 4.75 is an outrageous rate on home loan.
I have a danske mortgage on an investment property and was very surprised to see that letter about the reduction to 4.75 come in the post yesterday.Danske must be the only lender to be offering the same rate for variable home loan as variable investment rate.
 
Eureka101 said:
Switching is top of my list this year as close to 90% LTV now, although a bit concerned about being 'means' tested as i now have 2 kids both in childcare which I didnt have when i took original mortgage 9 years ago..
Im aware i cud be paying 3.5% with AIB including €2000 cashback which wud make a huge difference to us finacially regarding monthly payments and the impact that wud have on our disposal income..
Click to expand...

@Eureka101 I would not be as concerned with the 2 kids in childcare part. If you can show that you have consistently paid your mortgage with Danske at 4.95% without fail for the last number of years, it does put you in a stronger position than you might imagine. I know lots of people who have switched in the last 2 years who have families since their original mortgage. But it might involve keeping a detailed review of all expenditure for a quarter, and maybe presenting this to the bank as back-up material in the application.

Would I use a broker as opposed to going direct to a bank? Tough one. I know some banks don't allow the use of brokers. It also may be worth considering Pepper, who I am sure would offer you a rate lower than 4.75% as a fall-back option. You can progress approval in principle with a few, and based on the outcome of them see which ones you would progress with is...

And don't be afraid to target another switch in 2-3 years when the kids are in school (or in ECCE) as you hopefully hit the magic <80% mark.

Personally, when I got my house valued twice for mortgage purposes, I found the estate agent was actually willing to discuss the valuation with me beforehand. Its more about linking it to similar examples sold recently in the area, so would be good to show them to them if you needed to up the value marginally.
 
Rasher said:
I have a danske mortgage on an investment property and was very surprised to see that letter about the reduction to 4.75 come in the post yesterday.Danske must be the only lender to be offering the same rate for variable home loan as variable investment rate.
Click to expand...

A missed opportunity for them to target variable investment home loans ! Don't broadcast it too loudly or they might come looking
 
Are those Danske Loans staying with Danske or have you guys yet been notified of their sale to Cerberus (Project Pluto) ?
 
Lone Star; Loan book still owned by Danske.

Sarenco; I certainly will report back on my experience.
 
Eureka101 said:
I recieved a letter today from Danske informing me that as of 23/12/16 they have reduced the SVR from 4.95% to 4.75%...
Click to expand...
Did you not have a Danske current account which entitled you to a 0.5% reduction on the standard rate?
 
We did but when Danske 'pulled out' of the country, all current and savings accounts had to be transferred away which meant our overdraft also had to be paid back instantly.
We had always fixed our rate since day 1 but as this expired we were forced onto this SVR.
At one point before our fixed term expired we were actually sent a letter inviting us to contact the bank to discuss fixing, obtaining a tracker or choosing an SVR. The letter arrived a week after the stated cut off date and i spent a frantic 2 weeks trying to contact Danske only to finally be told 'oh, you should never have been sent that letter....'

I raised a complaint with the ombudsman and got the usual apology and a resolution letter stating i cud take it further if i wished.

Ultimately, a very uncomfortable and expensive experience since Danske announced their intentions to exit stage left and still claim the admission fee...
 
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I had a Danske SVR mortgage until i switched early last year. Once they had decided to exit the Irish marker they began ramping up the rate (ultimately to 4.95%) but I always received a 0.5% discount, until I moved my mortgage, as I had a fee paying (Prestige) current account. Given that you had an overdraft was your account not fee paying and therefore your mortgage still subject to a discount?
 
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