APR Rates... so confused!

[dmos87]

Hi All,

Looking for some guidance here, I am not understanding the APR rates and how they calculate out when I use banking website Mortgage calculators.

We're looking at buying our first home, we're married. House asking price is 190,000. We have Deposit of 20K minimum.

When I go to the AIB Mortgage tracker tool on their website:
Loan to Value (LTV): 89%

Loan Duration: 35 years
Preferred Interest Rate: 2 year Fixed
APR 3.26% Monthly Repayments
Years 1 - 2819 EURYears 3 - 35660 EUR


For Ulster Bank, same details:
APR 4.8%
Monthly Repayments
Years 1-2 804.54 EUR
Years 3-35 829.99 EUR


For Bank of Ireland, again the same details:
APR 4%
Monthly Repayments
Years 1-2 not provided on website tool, they simply give 35 years as 831.05 EUR monthly repayments


Here's what I don't understand... APR for Bank of Ireland is .8% less than that for Ulster Bank, yet my repayments would be less with Ulster Bank?

APR for AIB is the lowest, yet my repayments for years 1-2 are higher than Ulster Bank Years 1-2.

I know these are all estimates only of course, but I still think it doesn't make sense.

Can someone explain this to me, I'm very confused and my mind is boggled from running numbers! Its also a bit too early, I need a coffee

 

[DerKaiser]

The APR is an average over 20 years, combining the 2 years fixed rate quoted with 18 years of the standard variable rate. It looks like Ulster Bank has the best fixed rate for the initial 2 year period, but AIB & BOI have lower standard variable rates allowing them to quote a lower 20 year APR.

Might be possible that the BOI payment illustrated is for years 1 & 2 only and fall off to a lower amount from year 3 onwards (as the variable rate is lower than the initial fixed rate)?

 

[dmos87]

We would be looking to fix for 2 years, maybe 3 to begin with and re-evaluate further down the line.

I think I need a "Mortgages for Dummies" book, I'm not getting this at all!!