# Key Post: First Active mortgage/current account



## Elcato (5 Feb 2003)

I see First Active have launched a combined mortgage and current account.   4.3% APR

Does anyone know if any of the other lenders are planning to do the same?  

I don't want to go to all the trouble of re-mortgaging if my current mortgage provider is about to launch a similar product. 


Stephen


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## rainyday (5 Feb 2003)

*Re: First Active mortgage/current account*

Hi SD - Just a suggestion - Make sure you ask your current lender. They will only introduce such products if they perceive significant demand - If you don't ask, you won't get!


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## Mark McG (5 Feb 2003)

*Re: First Active mortgage/current account*

I would be very interested in the boards view of these types of products. I am not sure if I fully appreciate the benefits and risks of such an account.

Mark.


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## rainyday (5 Feb 2003)

*Re: First Active mortgage/current account*

Here's the [broken link removed]


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## saver (5 Feb 2003)

*First Active mortgage/current account*

Sorry, I'm a bit lost on the mechanics of this, I hope this doesn't sound foolish...

Right...

2 Accounts: A Loan account & A Facility account

I presume that there is a fixed monthly repayment transferred from the facility account to the loan account just like a standard mortgage and current account?

The benefit though still being that interest is charged on the balance of the loan account minus the balance on the facility account?

I think where I'm lost is on how this could reduce the term of mortgage? Interest savings?

Or is the monthly repayment based on any excess above a certain amount in the facility account?

Sorry if this sounds like nonsense...

Any thoughts?

saver


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## ClubMan (5 Feb 2003)

*Re: First Active mortgage/current account*

My understanding of "mortgage accounts" in general (whatever about the specifics of the FA product) is that monthly repayments are made as normal (or maybe into the mortgage account?) and then additional funds may be deposited in the mortgage account which are offset against the outstanding principal. Because interest is calculated on a daily basis having "excess" funds (over and above the normal repayment schedule) on deposit means that the outstanding principal is effectively reduced thus also reducing the daily interest charges - even if those funds are subsequently withdrawn at some future date. I guess the main difference between the mortgage account and accelerated (monthly or lump sum) repayment of a "normal" (variable rate annuity) mortgage is that with a mortgage account the funds used for accelerated repayment are still available if required while for a "normal" mortgage they are not?


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## saver (5 Feb 2003)

*First Active mortgage/current account*

Hmmm...

I think I'm expecting it to be more complicated than it is.  My question possibly also relates to the specifics of the FA product.

Now I'm thinking that it's obvious that if you had a regular excess at the end of the month, it just builds up in the Facility account.  You receive the benefit of reducing your interest costs, but it's still available to you.  If this builds up a significant amount it's obviously up to you wether it goes into the loan account or not as with a "normal" mortgage.

For some reason I was expecting that excess building up would be automatically transferred to the loan account somehow, but now that seems stupid.

I think that answers my own question.

We apologise for the interruption and now return to normal viewing!

Unless someone wants to tell me that I'm still confused.

Anyway,
Thanks,
saver


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## rainyday (5 Feb 2003)

*Re: First Active mortgage/current account*

I read a report in the Irish Times today which said that any spare funds in the current account at the end of each month would be automatically transferred to the mortgage account. Seems a bit drastic to me!


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## saver (5 Feb 2003)

*First Active mortgage/current account*

So that would mean that building up say an annual car insurance payment of say €2K would require a seperate account! That's a bit mad!

But it does answer the other thing I was wondering about: without that being the case, you would be able to build a reserve in the Facility account that could effectively be an unchecked borrowing reserve at mortgage rates.  Particularly if you picked a 35 year mortgage instead of a 30 year or 25 year one but paid the higher repayments.

Anyway, answers my question.

Thanks!


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## SD (6 Feb 2003)

*Solictor needed?*

If I transfer my mortgage to First Active what solicitor's fees would I need to pay? 

Last time around, my solicitor would have performed title search, dealt with land registry, collected cheque for financial institution etc. 

Were these one offs, or does these processes have to be repeated again (for a similar cost)?

First Active have a panel of solicitors -  I don't have to use any of them.  The charge would be €969


Stephen


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## ClubMan (6 Feb 2003)

*Re: Solictor needed?*

As far as I know the conveyancing job normally has to be done from scratch each time a a property changes hands or is remortgaged. However I'm open to correction on this.


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## Sarah Wellband (6 Feb 2003)

*Re: Solictor needed?*

Hi Stephen,

You'd incur all the legal fees and outlays in transferring your mortgage to First Active - their inhouse package is good value and as they are using title insurance on remortgages (whereby the new mortgage can close before the deeds are released by the existing lender on the basis that the original solicitor did everything correctly on the purchase) the process should be much faster than normal.

For what it's worth I think this is a stonking product!

Regards,

Sarah

www.rea.ie


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## suzie (6 Feb 2003)

*Re: Solictor needed?*

What is the interest rate for this type of account? I assume it has to be > variable rate? If one has a mortgage with First Active, would it be straight forward to transfer (without incurring costs)?

Thanks

S.


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## SD (6 Feb 2003)

*Interest rate*

Interest is same as standard variable rate.  Currently 4.24%   This is guaranteed to be never > 1.5% above ECB base rate.

Fixed rate mortgage is not possible.


Stephen


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## US (6 Feb 2003)

*.*

4.24% ???

That's a huge interest rate to pay. UB only charge 3.6% for their tracker, if you have an account with them.

This must be one of the most expensive rates on the market. Am I right ?


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## ClubMan (6 Feb 2003)

*Re: .*

According to [broken link removed] Ulster Bank charge 3.9% (4% APR) for their tracker mortgage. Maybe that's not completely up to date and/or you get an additional rate bonus if you also bank with them? Is the FA 4.26% an APR or nominal rate? If it does turn out to be one of the pricier variable rates (notwithstanding the ECB+1.5% cap guarantee) surely it somewhat negates the advantages of the mortgage account and sticking with a cheaper standard variable rate and accelerated repayments when possible may be a better bet after all....?


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## euroDilbert (6 Feb 2003)

*New Account*

While this type of account is very good in pronciple and long-overdue in Ireland, there are a few problems with this particular one :

(1) The mortgage interest rate is pretty high

(2) The current account part of the deal seems VERY limited.
i.e. no Laser card (until July). 
No chequebook (only cheques 'supplied by your branch').

I would guess that few normal services other than the very basic ones are available. So, not really a replacement for a 'real' current account.

Hopefully, it will stimulate other institutions into producing some better versions.


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## DM (6 Feb 2003)

*First Active Mortgage account*

This looks like a good product to me and at least provides an innovative option in the market place.  The interest rate will vary over time (like everybodies) and my reckoning is that FA are about mid table generally when it comes to variable mortgage rates.  The lack of a cheque book (if this is the case) is a major drawback.


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## saver (6 Feb 2003)

*First Active Mortgage account*

If Rainyday is right in saying that any excess left in your facility account is transferred to the loan account at the end of the month, it sounds to me like you'd need another account anyway for the kind of month to month "informal" savings that you'd normally build up.

If that's the case, I suppose you could open an account with some of the missing facilities; cheque book etc.

It's all extra hassle though... Then again, if you're dead set on putting every spare cent straight to your mortgage, maybe it's worth it?

saver


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## Sarah Wellband (6 Feb 2003)

*Re: First Active Mortgage account*

Hi Saver,

Whilst any funds in the facility account are credited to the loan account the money remains available to be drawn by way of ATM, direct debits, Laser (from June) or cheques drawn in the branch network. Think of it as an almighty overdraft with a limit equal to your original mortgage balance......

Sarah

www.rea.ie


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## saver (6 Feb 2003)

*First Active Mortgage account*

Right, so that would be contrary to what rainyday suggested? Or am I losing my direction in this?

So now what I'm wondering is, does this leave the product open to being used almost like a cheque book mortgage (without the cheque book :\   ).

Suppose I could afford to pay a 20 year mortgage, but took out a 35 year mortgage instead.  Assuming I didn't spend the extra money it woud build up in the facility account (?) leaving it available to be withdrawn as I wished, almost like getting a loan at mortgage rates without *any* form filling or checks being done?

thanks again,
saver


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## ClubMan (6 Feb 2003)

*Re: First Active Mortgage account*

*Right, so that would be contrary to what rainyday suggested? Or am I losing my direction in this?*

From what I've read _all_ payments over and above the normal repayment schedule are always available for withdrawal by the customer. I think the confusion may be that some people have the idea that there comes a point when such overpayments are "locked into" the mortgage and thereafter not available for withdrawal. I'm not sure why First Active didn't simplify the product further and get rid of technical terms like "facility account" and "mortgage account"?


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## rainyday (6 Feb 2003)

*Re: First Active mortgage/current account*

Here's what the Irish Indo has to say about this product.


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## suzie (6 Feb 2003)

*Re: First Active mortgage/current account*

Would it be wise to use this new account for storing that "rainy day money"?, you know the money that would help you maintain your lifestyle for a period or 3-6 months incase of accidents/emergencies?

S.


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## Liam D Ferguson (6 Feb 2003)

*RainyDay money*

*"Would it be wise to use this new account for storing that "rainy day money"?"*

I'm glad you clarified that you didn't mean money you owed our own  for services rendered. :lol 

Yes I think this product would be a good home for your short-term savings, as you will be getting an effective return of 4.24% (or the prevailing interest rate) on the savings (by reducing your mortgage balance) while maintaining access to the funds.  

Liam D Ferguson
www.ferga.com


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## ClubMan (6 Feb 2003)

*Re: First Active mortgage/current account*

*Here's what the Irish Indo has to say about this product.*

Is this snippet really accurate!? 

_Some lenders do facilitate occasional lump sum reductions off the outstanding mortgage, but in general these have to be quite sizeable to be permitted._

I thought that accelerated regular or lump sum (of any size!) repayments could be made against any variable rate mortgage without penalty?


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## saver (6 Feb 2003)

*First Active Mortgage account*

That would be part of the idea I think.  Assuming that your reserves sit in the facility (current) account part.  It'd be like having paid money off your mortgage unless you suddenly need it.

As they pointed out in the independant, it would suit people that pay a lot of attention to managing their money and those that are a bit lazy, since, keeping pretty much any available money in the account saves mortgage interest and any "borrowings" withdrawn from the account would, equally, "cost you" at mortgage interest rates.

saver


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## saver (6 Feb 2003)

*First Active Mortgage account*

Sorry, previous post in response to Suzie...

Liam D and Clubman sneaked past me...  

saver


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## Liam D Ferguson (6 Feb 2003)

*Re: First Active Mortgage account*

Hi Clubman, 

Lenders cannot charge a penalty for accepting overpayments on a variable rate home-loan, but they are free to impose their own criteria for what overpayments they will accept.  Example - Bank of Scotland will only accept a minimum lump sum of €1,000.  

Liam D Ferguson
www.ferga.com


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## ClubMan (6 Feb 2003)

*Re: First Active Mortgage account*

Thanks Liam - I wasn't aware of that.


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## DM (7 Feb 2003)

*FA mortgage account*

The way I read this is as follows.  If you owe a 100000 mortgage in your loan account and you have 1000 in yourfacility account the interest due on the mortgage will only be calculated on 99,000.  If the next month you happen to have 4000 in your facility account then the interest due on the mortgage will be calculated based on 96,000. I think these calculations of interest are carried out on a daily basis so it does'nt matter if you deposit or withdraw cash from your facility account as per your normal routine. The net effectof this seems to be that you will gain interest of (4.2%) on what ever amount you have deposited in the facility account.

However, it seems that this interest gain must be deducted from your mortgage either in terms of the monthly repayment or the duration of the mortgage.     The other point seems to be that if FA have high interest rates which is very bad then the interest gain from the facility account would also be high which is a little bit good.

I'm not sure of this but it might also mean that you get an overdraft facility at 4.2 % which would be good.

I think its a good development and maybe other lenders may follow suit or indeed improve on it.

DM


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## saver (7 Feb 2003)

*FA mortgage account*

Right!

I gave in and rang First Active!

There is no limit to the balance that can be built up in the facility account.  First Active do not at any point decide that you have too much in your facility account and either filter it to the loan account or cap it in any other way.

When I asked that question I was simply told (after a quick check) that "No, that won't happen"

So...!

Why doesn't anybody who could afford a 20 year mortgage take out a 35 year mortgage instead but (essentially) make "20 year mortage contributions" in the form of a combination of a "35 yr mortgage" monthly repayment (to the loan account) and leaving the excess in the facility account.  This would essentially be a 20 year mortgage except that you would be building up a fund in the facility account to be used at your (cautious) whim should you ever need it!

I asked her (Girl from FA) if that could be done and I was told that she didn't see any problem with it, that it would just be one of the benefits of the product.

Sounds good to me (apart from ECB +1.5% interest rate)

saver


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## ClubMan (7 Feb 2003)

*Re: FA mortgage account*

*Why doesn't anybody who could afford a 20 year mortgage take out a 35 year mortgage instead but (essentially) make "20 year mortage contributions" in the form of a combination of a "35 yr mortgage" monthly repayment (to the loan account) and leaving the excess in the facility account.*

I don't understand the rationale of this. In general the shorter you can keep your mortgage term (either initially or through "acclerated" repayment of the loan) the more economical it will be in the long run.


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## saver (7 Feb 2003)

*FA mortgage account*

Hi,

The idea is that you're still keeping it short because you're still putting the same amount in through "overpayment".

The monthly repayment (the bit that ends up locked in to the loan account) is smaller than for a 20 year mortgage though, so you're offsetting this by building up a balance in the facility account with the difference.

The balance in the facility account isn't "locked in" as such, you can even withdraw it with an ATM card.  this provides you with something almost like PTSBs cheque book mortgage... "I had another 10K paid off the mortgage, but I decided I needed a new car"...

Other advantage is, that if you are a bit tight one month, there's nobody forcing you to build that excess in the facility account so you can just make your (smaller) fixed repayment.

I'm probably not explaining myself very well...

Does anybody see where I'm coming from? Does it make sense?

saver


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## ClubMan (7 Feb 2003)

*Re: FA mortgage account*

But what's the difference between that and taking out a 20 year or shorter variable rate mortgage (_at a lower rate than First Active currently offer_) making normal and/or accelerated repayments while also saving spare cash in a high yielding deposit account?

Also - surely First Active have some procedure for what happens when your normal repayments and deposited savings result in a nil balance on the mortgage loan? Do they terminate the mortgage & close your account?

Don't get me wrong - the FA product is a welcome innovation in the Irish mortgage market but don't forget that a lot of what it facilitates is already possible with existing products.


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## saver (7 Feb 2003)

*FA mortgage account*

Hi Clubman,

I was hoping, that'd be followed by "Oh I see what you're saying..." because I know I'm not managing to explain my point too clearly...

Right, here goes a (very) simplified case study...

Bob earns net €2000 per month...

Bob spends €500 per month so has €1500 per month to sort out his mortgage.

On checking, €1500 per month would allow him to pay a 20 year mortgage.
but, €1000 per month would allow him a 35 year mortgage...

Bob wants to pay off his mortgage in 20 years but is nervous about tying up his money and fluctuations in his monthly income...

So, Bob get a 35 year current account mortgage from FA.

Each month, his €2000 gets lodged to the facility account halping to save him interest...
all going well...
Each month he spends €500 and each month €1000 gets locked in to the loan account... But there's still €500 extra in his facility account.

If he keeps this up, he will have essentially paid the interest equivalent of a 20 year mortgage and after 20 years his facility account balance will match his outstanding loan... Mechanics of what happens then I'm not sure of but he can somehow close the mortgage.


The advantages to Bob though...

If Bob only gets paid €1500 in a particular month, €1000 gets repayed to the loan account and he has the option of spending the remaining €500 anyway.  He's not in any way tied to the €1500 a month that was going towards his mortgage, only to €1000.

Also, if Bob's car gets destroyed by an act of God and he needs a new one he has a balance sitting in his facility account that he can call upon without checking with FA and without having to go through the complexities of officially extending his mortgage, they're expecting him to take 35 years anyway.  It also has the advantage that he can call on it for little expenses, say, €2000 for car insurance and so on...

Case study ends here...

If Bob had taken out a 20 year mortgage elsewhere he would be tied (well, more so anyway) to his repayments of €1500 per month.

Also, if he needed, say, €10k for a car, he has to jump through the usual hoops...

Assuming none of these problems arise though he's not losing any of the benefits of a 20 year mortgage.  He's also getting the normal expected benefits of reduced interest from having his salary paid in and spending from the facility. But, yep, he's paying (ECB + 1.5)%


I know this is long winded, I just can't seem to explain myself (or maybe I'm just not understanding Clubman's explanation?)
And I'm supposed to be an instructor... Does anybody see what I'm saying?

saver


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## ClubMan (7 Feb 2003)

*Re: FA mortgage account*

Sorry - yes - I think I understand what you're saying. I was just trying to tease out some caveats to bear in mind when making a decision between a current account mortgage and something more "traditional".

*If Bob had taken out a 20 year mortgage elsewhere he would be tied (well, more so anyway) to his repayments of €1500 per month.*

I thought that most lenders allow the term of a variable rate mortgage to be varied without much hassle (e.g. reduced through accelerated repayments or extended through rescheduling of repayments) so a normal variable rate mortgage may not be as inflexible as one thinks?

Also - don't forget that the First Active mortgage interest rate is relatively high compared to others.


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## saver (7 Feb 2003)

*FA mortgage account*

Whew!  

Yep, the flexibility in repayments was actually an after-thought, where I see the benefit is in having built a fund that would essentially be a (relatively) unchecked borrowing reserve, effectively at (even if a bit high) mortgage rates.

To be honest I don't know how I got into this, I don't have a mortgage and amn't quite in the market for one yet... anyway...

Well, at least I can stop paying so much attention to the "change of career" thread going on elsewhere...

Thanks yet again
saver


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## Sarah Wellband (7 Feb 2003)

*Re: FA mortgage account*

Hi Saver,

A couple of small points with your theory. Firstly the max. term is 30 years rather than 35 and secondly the max. mortgage is determined by your income so a longer mortgage will not increase your borrowing capacity (it will with lenders who work solely on net disposable income but First Active work on the lower of the two criteria). 

Hi Clubman,

Reducing a mortgage term is OK but if you increase the term you have to lenghten your mortgage protection - which normally means having to reapply - and there may be some legal costs as the mortgage deed may have to be restamped.

Although the rate is not competitive it's on a par with PSTB, ICS and IIB Homeloans (well, within 0.04%) the interest savings with the daily calculation make this product very attractive.

Regards,

Sarah

www.rea.ie


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## Liam D Ferguson (7 Feb 2003)

*Re: FA mortgage account*

Hi saver, 

Everything you said is correct.  To appease ClubMan,   I will concede that you are paying an extra 0.39% or so compared with the best variable rate in the market (AIB, assuming loan higher than 80% of value) but in return you are getting the flexibility you have described above. 

If you have a standard repayment mortgage and make overpayments, it's cumbersome to get them back.  An overpayment sitting in the Facility Account can come back out immediately.

By the way - one small point (an extension of Sarah's point really) about your idea, saver, is that if you apply for a 30 year current account mortgage when all you really need is a 30 year one, you'll need a 30 year life assurance policy, which will be dearer than a 20 year one.  

Regards, 

Liam D Ferguson
www.ferga.com


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## dannymur (8 Feb 2003)

*Re: FA mortgage account*

hi Sarah

slightly off-topic, but perhaps Sarah could comment

you say

*


			Reducing a mortgage term is OK but if you increase the term you have to lenghten your mortgage protection
		
Click to expand...

*
does this mean that if you reduce the term of a mortgage from, say, 20 to 10 years, by arrangement with your lender, do your mortgage protection payments reduce to take account of the reduced mortgage term.


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## ClubMan (8 Feb 2003)

*Re: FA mortgage account*

As far as I know... If you reduce the _effective_ term through accelerated regular or lump sum repayments then the original mortgage protection life assurance policy usually remains in place and the same premiums apply. However maybe you can arrange a new shorter/cheaper policy and cancel the original one? In any case, once the mortgage is cleared, even if this is before the original term agreed, then mortgage protection life assurance is no longer required - i.e. you can let the policy lapse or exercise the conversion option on a convertible term policy.


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## suzie (8 Feb 2003)

*Re: mortgage (insurance) protection*

I was thinking about this recently. I have just passed 5 years of a 20 year mortgage, but I have reduced the remainder to 9 years.

Can somebody elaborate on what my options are on a fixed 20 year mortgage protection policy? Do I have to kepp paying it for the remainding 15 years.

Thanks

S.


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## ClubMan (8 Feb 2003)

*Re: mortgage (insurance) protection*

My understanding (and experience from redeeming a mortgage early) is that once the mortgage is paid you can decide whether or not to continue a level term life assurance policy to the original term or, in the case of a convertible term policy, decide whether or not to exercise the conversion option. I presume that a decreasing term policy ceases once the loan has been repaid in full.  from the archives contains a good explanation of the different types of mortgage protection life assurance policies (decreasing, level and convertible term) in case you're not familiar with them.


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## rainyday (9 Feb 2003)

*Re: First Active mortgage/current account*

See Shane Ross's verdict on this product here

_Edited by ClubMan to fix link._


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## ClubMan (10 Feb 2003)

*Re: First Active mortgage/current account*

I see the Sunday Tribune reckoned that one would need to maintain an average balace of  c. €5,000 in the facility account over the lifetime of the loan in order to offset FA's higher interest rate compared to other cheaper rates _currently_ available, and consequently more than that in order to start saving on interest costs.


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## Rex22 (10 Feb 2003)

*Mortgage with FA*

I have a mortgage with FA and I have been reading these posts wiht great interest. My 2 yr fixed rate is ending this August. I am worried that I amy not be getting the best deal with FA. We borrowed €120,000 and the repayments over 25 yrs are €640 pm ( after TRS). Should I go for another fixed rate term, variable or should I be looking to change my mortgage provider?


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## ClubMan (10 Feb 2003)

*Re: Mortgage with FA*

You (or somebody else here on your behalf) would need to do a bit of number crunching to see how much it could cost (e.g. legal fees etc.) you to remortgage with a cheaper lender versus how much you stand to save (assuming current rates/margins) in order to assess if it would be worth it. As far as I know First Active are one of the most expensive variable rate lenders. I don't know where they stand in terms of fixed rates. Have a look at [broken link removed] to compare mortgage rates.

As regards fixed versus variable rates, trying to predict future rate behavious is a fruitless task and as soon as you think you know which way they're going they will most likely have been priced accordingly. Unless you are struggling to meet your mortgage repayments or would be if rates increased by, say, a couple of percentage points then you will usually be better off (in terms of cost and flexibility - e.g. making accelerated or lump sum repayments without penalty) in the long term sticking with the best variable rate available.


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## Liam D Ferguson (10 Feb 2003)

*Re: Mortgage with FA*

Hi Rex22, 

If your mortgage represents less than 60% of your home value, you can get a variable rate of 3.7% (APR 3.8%) from Ulster Bank.  My rough calculations suggest that this will be around €35 per month (gross) cheaper than First Active.  Re-mortgaging will cost you around €1,200 depending on your solicitor so it would take you around 3 years to recoup the cost, assuming First Active don't get more competitive in the meantime.  

If you earn more than you spend each month, or tend to keep a lump sum on deposit for "rainy days" you could consider switching your mortgage to First Active's current account mortgage product.  Cost of switching is much lower because it's already a First Active mortgage.  Whether or not it will beat the UB alternative over time depends very much on your own spending and saving habits.  

Liam D Ferguson
www.ferga.com


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## ClubMan (10 Feb 2003)

*Re: Mortgage with FA*

I had an idea Liam might do the number crunching!  

*you can get a variable rate of 3.7% (APR 3.8%) from Ulster Bank*

Is that UB's tracker rate? What's the guaranteed margin?


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## Liam D Ferguson (10 Feb 2003)

*Re: €5,000 figure*

Hi Clubman, 

Just to clarify - the €5,000 figure mentioned in the Tribune was based on the following example - if someone with a €150,000 mortgage lodged €5,000 into the mortgage 3.5 years into it's term and left it there, the total interest bill after 20 years would be less than on AIB's 3.85% mortgage.  This also assumes that AIB maintains it's 0.39% rate advantage over First Active at all times during the period.  

Regards, 

Liam D Ferguson
www.ferga.com


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## Liam D Ferguson (10 Feb 2003)

*Re: €5,000 figure*

Hi ClubMan, 

I see we're back to crossing posts!

Ulster Bank rate of 3.7% contains a margin guarantee that the rate will never exceed 0.95% above ECB.


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## rainyday (17 Feb 2003)

*FA*

I got the 'blurb' from First Active & spoke to one of their guys. It appears that the concept of funds being 'swept' from the current account to the mortgage account was rubbish. They don't do any such thing. Apologies for any confusion caused.

I'm just waiting for further details from them on the current a/c charges.


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## rainyday (18 Feb 2003)

*Re: First Active mortgage/current account*

I got the details of the account charges from First Active - they certainly seem to be on the steep side.

```
Quarterly Maintenance Charge        €6.35
Transaction Fee (Laser/ATM/DD/SO)   €0.24
Funds transfer to/from Mortgage     €0.24
Standing Order/Direct Debit Setup   €3.40
Standing Order/Direct Debit Change  €1.25
```
Etc etc etc

_Edited by ClubMan to fix tabular data formatting._


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## ClubMan (18 Feb 2003)

*Re: First Active mortgage/current account*

*Standing Order/Direct Debit Setup   €3.40*

Well that one's cheaper that the €5 PermanentTSB charged me for a DD setup! :eek


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## DM (19 Feb 2003)

*FA current account mortgage*

I got the FA data today and noticed something else that they did'nt elaborate.  You can't get an overdraft facility.  They give you an 'equity release' instead if you get upfront approval.  This sounds like an increase on your mortgage in the loan account which you will pay back over the duration of your mortgage.  I'm not sure if they will allow you to refund the 'equity release' easily or at low cost should you have the wherewithall say the following month.  

Can anybody throw light on this?


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## saver (19 Feb 2003)

*FA current account mortgage*

You could lodge it into the current (facility) account.  It has the same effect as a repayment.  Also if you were worried about needing occasional overdrafts and you were willing to be careful about it you could adopt the strategy I outlined earlier...

saver


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## rainyday (17 Jan 2005)

*Re: FA current account mortgage*

This week's Sunday Tribune reports that NIB are about to launch a current account mortgage in the Irish market - the first significant new product NIB have launched since the takeover by Danske bank was announced. Let's cross our fingers that this won't impact the discounted rate offered to [broken link removed]


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## rainyday (20 Jan 2005)

*Re: FA current account mortgage*

See [broken link removed] for more details of NIB's 'offset' mortgage - seems like a no-brainer, assuming the same rates as my existing NIB mortgage applies.


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