Year one nearly up on mortgage

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flanner

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OK guys

Need some help. Year one is nearly up on my mortgage. Been told that mortgage is going to go up by at least 170euro per month. That is for a tracker one. For a fixed one we go well over 240per month extra. That between 4.5% and 5% interest.

Ok so what should i do. No well up on all this sort of thing. If i change mortgages it is (so i have been told) going to cost well over 1000euro for legal fees and stuff.

The extra amounts are really going to strain me to be hoenst. Any advice would be greatly appreciated.

Not even sure what i am asking you to say to me :confused:
 
We are in the same boat however bear in mind that as your interest rises so will your interest relief so you may not be hit with the full amount.
 
between last year and this year my mortgage relief at source has not changed. People are telling me that it should have but it hasnt. Just getting totally confused with everything. Really thought i was doing well but i am beginning to doubt that now
 
Hi FLanner
I feel for you - and we are in a simular boat. TBH it makes no sence to fix - if you fix for a year you do not end up saving much, the longer you fix the pricier it gets.

I would stick with the tracker. We are currently on a tracker at .99 with EBS (moderatly expensive) and are currently organising a valuation to change to another LTV tracker.
Give yourself a year or 2, you will have a bit more paid off the mortgage and "hopefully" your house will have appreciated a bit.. and you can try to organise an LTV tracker...

And depending on how much interest you are paying you will get more relief.....
 
mortgage relief at source has not changed
Click to expand...
Either you're not paying enough interest for it to change or the revenue have to update your records.
Speak to some one in the bank to get a statement of interest paid, if you are paying €16k in interest you get maximum relief, otherwise I think you get 20% of interest paid in relief...
You should also contact the revenue..
 
house has increased by 110,000 euro in one year
Click to expand...

Not a bad position to be in:)
Check if your bank does LTV trackers, if not have a look at switching to NIB...
We are with EBS and are currently reviewing their LTV packages. If they are not good enough we'll switch... The money is better off in my pocket!:)
 
whats a ltv tracker? is it the same as a ecb tracker?

there are only two types of mortgages right? Trackers = variable and then fixed types.

Am i right?
 
flanner said:
whats a ltv tracker? is it the same as a ecb tracker?

there are only two types of mortgages right? Trackers = variable and then fixed types.

Am i right?
Click to expand...
Probably means an ECB tracker limited to certain LTVs - e.g. some lenders offer lower tracker margins for lower LTVs (loan to value ratios - i.e. the mortgage amount expressed as a percentage of the property value).
 
First Active 1 year fixed is superb value at the moment.
4.34% (so it is the same price as an ECB + 0.59% tracker but fixed for 1 year).
The only caveat is this could change pretty soon but if you think you can close in the next 4/6 weeks then it's a great deal.

First Active also offer a free switcher so no leal fees, all it will cost is the valuation. €130
 
My first year with AIB is just over too...

My LTV ratio is 59% (210 mortgage, 357K value)
So they have offered me their 50<80% option with a rate of .75 above ECB

This gives me a tracker rate of 4.5%
Anyone reckon i can do better than that (with AIB or elsewhere?)
 
Actually to answer my own question above...
I can see online that AIB have a rate of 4.2% for new business trackers.
I will post a seperate thread on this to prevent the original posters meaage going off topic
 
IIB do a good LTV tracker mortgage as well depending the amount being borrowed.
If you are looking to change mortgage some banks will cover the re-mortgage costs also if going to a mortgage broker look for a "contribution" from them toward your costs from the fee they get from the bank.
Finally with the SSIA's maturing First Active do a current acount offset mortgage that is excellent if you can save money. Basically you do not pay interest on your mortgage for amounts saved/currently lodged in your current account, i.e. if you have a mortgage of 100k and have 5k in your current account interest is charged on 100- 5 = 95k. If may not sound like much but it adds up and reduces the lenght of remaining time on the mortgage.
Finally stick with it, at the start it seems like the amount owed is never reducing and you feel like you are running to standstill but it comes changes.....eventually...good luck!
 
flanner said:
between last year and this year my mortgage relief at source has not changed. People are telling me that it should have but it hasnt. Just getting totally confused with everything. Really thought i was doing well but i am beginning to doubt that now
Click to expand...

Just in relation to above, I am in the same boat, 1st year of my mortgage and I was expecting to see some kind of change in my payments in the new year with the new budget.

I rang my bank and they explained that as I purchased my house in August 2006 - my interest relief was spread over the remaining months in the year i.e August to December. In 2007 the relief is spread over the full 12 months so this is why you don;t see a reduction.
 
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