BoI UK charges 1.24% + £1,025 set up fee, for two years

Brendan Burgess

Brendan Burgess

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From Money Saving Expert .uk

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The Post Office mortgages are provided by Bank of Ireland

This is a tracker for two years so , the rate is Bank of England rate + 0.74%

For a £200,000 mortgage the interest over two years would be £5,000.

Including the £1,000 admin fee, the effective rate of interest would be 1.5%. (Bank of England rate+1%)

And they want the Paddies to fix at 3.6% for 80% LTV?

Brendan
 
The post office network in Ireland is losing business with rural branches closing.Why don't we copy the U.k./BOI model?Obviously Alex White our minister in charge of our Post Offices is asleep at the wheel just like the previous regulator
 
Have you seen the price of some of the products that the PO sells compared to alternatives available?
E.g. mobile phone packages (PostMobile), insurance (OneDirect), money transfer, courier services, even bog standard postage in some cases etc.?
If these are any indicator I wouldn't expect rock bottom prices on mortgages if they were to sell them!
 
Eh, that's a 2 year introductory rate. After which it steps up to the SVR which is currently 4.5%.

BOI are offering 2% cash back in ireland. Probably similar value.
 
Andy836 said:
Eh, that's a 2 year introductory rate. After which it steps up to the SVR which is currently 4.5%.

BOI are offering 2% cash back in ireland. Probably similar value.
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ALL SVR's in the UK are similar, if not higher, than the Irish equivalent. However, the number of people on SVR's is minimal - they usually select a new deal every time their previous one ends. BOI Ireland's 2% cash back offer, on the other hand, will be a one-time deal.

For what it's worth, the cheapest UK lifetime tracker rate at the moment is with The Coventry, has a fee of £999 and a rate of 1.69% at present. My own tracker is at 1.29% above BOE, so currently 1.79%. It's not worth the fee for a saving of 0.1% so I'm sticking with what I've got for now. I moved to this rate in January of this year and, at that time, it was fee-free (no booking fee, no valuation fee and no legal fees to switch).
 
ronaldo said:
BOI Ireland's 2% cash back offer, on the other hand, will be a one-time deal.
.
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How could you know that in advance?

In any event, even if you're proved right there is nothing to prevent a borrower refinancing with another lender after five years if they are offering a better deal at that stage.
 
Sarenco said:
How could you know that in advance?

In any event, even if you're proved right there is nothing to prevent a borrower refinancing with another lender after five years if they are offering a better deal at that stage.
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You've got me there. It's impossible to know whether it's a one-time deal or not - but I'd nearly put my house on it that it will be :)

Regarding refinancing with another lender, this thread is trying to show the significantly lower rates available in the UK - you have a choice of a multitude of banks offering rates significantly lower than Ireland to remortgage to. In Ireland, you only have a few, very un-competitive, banks.

It's true that the mortgage market will change over the next few years but we can only go on what's available now. I'd hazard a guess that UK rates will remain lower than Irish rates in the short-medium term - in spite of the BOE base rate likely rising well in advance of the ECB rates.

In fact, based solely on current bond rates (http://markets.ft.com/research/Markets/Bonds), not only should Irish banks be able to match UK rates - they should be able to beat them.

The one caveat is that rates could drop significantly if a new lender comes to the market - I'd say there's a pretty good chance of this happening over the next 2-3 years.
 
ronaldo said:
You've got me there. It's impossible to know whether it's a one-time deal or not - but I'd nearly put my house on it that it will be :).
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Thanks ronaldo.

I was being probably being somewhat provocative but I tend to bristle when people confidentally tell us what's going to happen in future, without any caveat whatsoever.

I don't disagree with anything else in your post but I would point out that there is a significant difference between the UK and Ireland in terms of the treatment of mortgage defaulters. In the UK you can expect to be evicted within around 4 months of missing a mortgage payment. In Ireland you could be pretty confident that it will be around 4 years+ before you have to face the same fate.

That difference has a profound impact on the pricing of mortgages in the two jurisdictions.
 
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