Which is the best lender to take out a mortgage with? - Discussion

Brendan Burgess said:
Inducements paid by lenders

AIB:
Loan approval lasts for 12 months
No current account fees for the account from which you pay your mortgage. ( orth about €80 per year.)

Ulster Bank:
€1,500 (It's called legal fees, but they pay €1,500 whether your fees are higher or lower)- Minimum mortgage: €40,000

[broken link removed]
€1,000 legal fees
1/2% discount for first year - but I have adjusted the rates in the above table for this.
Bank of Ireland
2% cash back - which they reserve the right to claw back if you move within 5 years.

KBC
50% off home insurance for first year
0.2% discount on rate if you have a KBC current account - included in above figures
Switchers, but not first time buyers or home movers, get €2,000 towards legal fees. If the mortgage is redeemed within 3 years, the €2,000 will be clawed back.
Click to expand...

I have inserted this information in the second post in

Have I omitted anything? I had not realised that the KBC €2,000 is for switchers only and not for first-time buyers.

Are there other factors which would be worth considering? The AIB loan approval lasts for 12 months - how long does the approval from the other lenders last for?
 
Hi Brendan,

Take Pauric's situation above but with a mortgage amount of >€450k and BOI offering 3.7% variable to get the business, would you still go with UB's 3.35% variable?
 
Hi GN

BoI is charging 4.2% for 80% LTV not 3.7%.

The only way I would do business with BoI or KBC is if they gave tracker rates. They are not to be trusted.

If BoI gives 3.7% on a tracker with 2% cash back, it would be a hard call.

I expect that people borrowing that amount of money will have more options in the New Year.

Brendan
 
Hi Brendan,

BOI offered me 3.7% variable after I informed them that a.) I did not wish to fix and b.) that I was eligible for UB's 3.35% variable. I haven't yet confirmed if this represented a 0.8% lifetime reduction on their SVR (currently 4.5%) or what, if anything, it was tied to. I'm currently in the process of switching from KBC.

GN
 
That is very interesting.

Ulster Bank will give you 3.35% . BoI will give you 3.7%. BoI is currently dearer by 0.35%. If that held for the full 5 years, then, you would pay an extra 1.75%. But you are saving 2% up front.

I would not trust Bank of Ireland to keep you on that rate. Are you sure it's not a fixed rate?

Get it in writing from them about how the rate will be determined in future, but given the likely reduction in Irish mortgage rates, I would not tie myself into any financial institution for 5 years.

Brendan
 
Thanks for the reply Brendan, I'm at the stage now where I have booking deposit down but wouldn't actually move into the new home until February/March next year which is when the mortgage would draw down. It would be at that stage I guess when I would have to decide on what rates to go with I think.

Does anyone know can I sign with the solicitor this month and still bring the 2-3 mortgage options with me when rates may drop further in the new year and my options on rates would remain open.
 
If you have mortgage approval, it usually lasts 6 months. So, yes, you can sign the contract now as long as you have mortgage approval from one lender.

By February or March, the landscape may have changed and the above advice may not be appropriate.

Brendan
 
Hi all, I posted about this separately but hoping for a response here as I am under pressure to decide on rates ( due to close next week). We are borrowing at 74% LTV with PTSB. Our letter of offer is for the MVR which is 3.5% for 1 year, currently 4% after that. It seems to make no sense to take this over their 1 year fixed which is 3.29% and then rolls off to MVR but I'm unsure as to whether to fix for longer than that ( 2 or 3 years at 3.6%). We will not be ideal candidates for switching after one year as we have another mortgage but not the worst candidates either as we have good income.
My question is, should I fix for longer than 1 year or stick with one year fixed and aim to switch after that if the MVR is still 4%?
 
Brendan Burgess said:
That is very interesting.

Ulster Bank will give you 3.35% . BoI will give you 3.7%. BoI is currently dearer by 0.35%. If that held for the full 5 years, then, you would pay an extra 1.75%. But you are saving 2% up front.

I would not trust Bank of Ireland to keep you on that rate. Are you sure it's not a fixed rate?

Get it in writing from them about how the rate will be determined in future, but given the likely reduction in Irish mortgage rates, I would not tie myself into any financial institution for 5 years.

Brendan
Click to expand...

Informed over the phone that the 3.7% variable rate offered is a 0.5% discount on their 80% LTV rate, currently 4.2%. It will rise/fall with this rate in the future. If I initially take it but subsequently fix it will no longer be available to me post fixed period.

Re saving 2% up front, the €1,500 from UB also represents a saving up front which cancels any advantage the 2% offers over a 5 year period vs UB, assuming rates didn't change.
 
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Brendan Burgess said:
AIB does not allow existing customers to avail of lower Loan to Value rates if the customer's LTV falls. However, they do pass on rate cuts, so they are a Best Buy.
Click to expand...

I got a valuation done by one of their panel - sent it into them and they put me on a lower LTV rate as a result. that was about 6 months ago - absolutely no issue.
 
Hi Brendan, thanks so much for this post, it has been hugely informative. We are First Time Buyers, about to purchase a home worth 365000, with a LTV value mortgage of about 49% (181000), and we're going with a variable rate. We've been to a mortgage advisor, and are probably going to go with AIB, so I as glad to see that they are your recommended buy for mortgages of less than 50% LTV. Can I just ask why you don't recommend PTSB, as their rate seems lower? I understand your feedback about BOI and KBC not passing on reduced rates/treating customers badly, but I don't see any negative feedback about PTSB on this thread, so was wondering why they aren't recommend if their rate is lower?

Also, do you know if it's possible to negotiate in terms of the incentives offered - eg instead of no bank fees, request legal fees covered etc. Thanks a million.
 
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The permanent tsb rate is 3.7% which is 0.35% higher than AIB. You get a short-term saving as a new customer but it's not worth the long-term cost. Although you should be able to change after a year, you might not be for a number of reasons. Or you might just not get around to it. Pick the lender which is most likely to offer the best long-term value.

ptsb is in a very difficult financial position. It has a big book of trackers and it has in the past and will probably continue to exploit its existing customers - probably because it has no choice but to do so.

For whatever reason, it does not offer its existing customers the option to fix. While I advise against fixing now, it may become advisable if mortgage rates fall to fair rates.


AIB has usually been the first to cut rates and they have cut faster than others.
 
Hi Brendan,

Thank you for the really informative post. I am borrowing 240k, about 79% LTV, 25 years and my first choice was AIB. Then somehow I calculated better rates from KBC, so currently waiting their offer. However after reading your post, it seems that if I go with LTV rate, AIB are the better lender here long term. Does it make any sense to explore 3 years fixed rate with them, what are the options afterwards - SVR? Thanks a million!
 
Brendan,

Has your opinion on whether to fix or not changed given this morning's announcement with respect to both the interest rate rises in the U.S., and the announcements from Michael Noonan in relation to AIB? Do AIB still remain as a 'best buy' or is it too early to say?
I ask as I'm currently trying to decide as a new customer on whether to accept the current variable rate on offer or fix for a year. I have approval from AIB, KBC, and PTSB but on the advice of many on this forum am edging towards AIB.

Many thanks
 
My view is that as the market normalises, there is a good chance that a new entrant will come into the Irish market and bring down rates for those who are able to move. So I strongly recommend against fixing for those who can move.

I can't forecast the future, and the Irish banks might double their rates tomorrow morning and it seems that the government doesn't really care.
 
Just wondering if this statement is still true in the second post on this thread:

"AIB:
Loan approval lasts for 12 months
No current account fees for the account from which you pay your mortgage. ( orth about €80 per year.)"

I am currently paying fees on the current account that the mortgage is drawn from.
 
Noting the new Ptsb deal -giving 6000 euro cash back to switchers, do people still think ulsterbank is best deal for those with equity of > 50% in their home?
 
leanbh

The details have not been announced yet.

But unless you can switch from ptsb without repaying the 2%, they should be avoided.

Brendan
 
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