Best Rates Options?

L

leonkings07

Registered User
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We're looking to get a 92% mortgage, we have spoken to a broker who says he would have no problem in getting us a mortage for €350,000.

Is there any practicular rate option we should push (in light of market slow down) to try & get...fixed, variable, tracker?

Also could someone possibly explain tracker rates in lay mans terms?! Not sure of the +% aspect.

Thanks you.
 
Have you looked here?

Best Home Loan Deals

A tracker rate is simply a variable rate that is determined by the prevailing ECB rate plus some fixed margin (e.g. ECB + 0.9%) and so rises or falls as the ECB rate rises or falls (within some period of time specified in the terms & conditions). In contrast with standard variable rates the lender may or may not pass on rate changes, in part or full, and whenever they choose.
 
ClubMan said:
Have you looked here?

Best Home Loan Deals

A tracker rate is simply a variable rate that is determined by the prevailing ECB rate plus some fixed margin (e.g. ECB + 0.9%) and so rises or falls as the ECB rate rises or falls (within some period of time specified in the terms & conditions). In contrast with standard variable rates the lender may or may not pass on rate changes, in part or full, and whenever they choose.
Click to expand...
 
Yes I have.

So does that mean that the variable rate itself doesn't change, just the margin?

Why are so many prople recommending tracker rates these days?
 
leonkings07 said:
So does that mean that the variable rate itself doesn't change, just the margin?
Click to expand...
No. There is no published margin with variable rates. The variable rate is set and adjusted at will by the lender. If the ECB rate goes up by 0.25% then the lender may pass some, all or more of this on as they choose. Similarly if it falls - e.g. in the past many lenders passed on only part of an ECB rate fall and only after a delay of a few months. Basically the lender decides what variable rate they will choose and there is no definite/guaranteed link to the ECB rate. In contrast tracker rates are pinned to the ECB rate with a fixed margin and rise/fall in line with the ECB rate changes.
Why are so many prople recommending tracker rates these days?
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Because long term a competitive tracker rate (margin) is the best bet for interest rate savings over the other options (non tracker variable rates or fixed rates).

There are lots of threads on this issue already.
 
See if you can get a tracker better rate than 4.75% (ECB plus 0.75) - which is available for first time buyers at Ulster Bank on loans upt 100%.
Watch out for good sounding special offers and 12 month discounts - they may sound good - but usually you pay back much more than you save after another 3 or 4 years.
Watch out for lower repayments on extended mortgages - some lenders or brokers may offer 35 yr mortgages - with lower monthly payments - but the overall interest payments on these will be much much more.
Also some lenders may offer you a bigger mortgage if you take out a fixed rate mortgage for 5 years. They don't have to do the "stress test" to see if you could afford the repayments if interest rates rose by 2%.
 
Non resident mortgage

Can i hijack this post and ask question about Non resident mortgage. My brother currently in US(illegal), now looking to get mortgage and buy house here. Can anyone advise on the process of doing this..??
 
I think you generally have to be resident for 3 months to get a mortgage here.
 
Re: Non resident mortgage

npgallag said:
Can i hijack this post and ask question about Non resident mortgage. My brother currently in US(illegal), now looking to get mortgage and buy house here. Can anyone advise on the process of doing this..??
Click to expand...

Is he moving back here first and then buying a house? Or is he looking to buy the house now and move back here later, or not at all? If the former, see ClubMan's reply. If the latter, he can get a non-resident mortgage here (treated as an investor) but would need to have a deposit of at least 20% of the purchase price and prove that he can sustain mortgage repayments here as well as commitments in the US. Most common for expat Irish professionals on megabucks - his illegal status might prove tricky.
 
Non resident mortgage

Thanks for the replys guys. His plan is to buy investment here and rent out and return to ireland to live in 5 yrs time. He has the 20% deposite but I would say he might have difficulty getting income confirmation from employer in order to prove that he can sustain mortgage repayments. Has he any other options..? beside getting joint mortgage and using other applicant as assesment for borrowing capicity.
 
irishlinks said:
See if you can get a tracker better rate than 4.75% (ECB plus 0.75) - which is available for first time buyers at Ulster Bank on loans upt 100%.
Watch out for good sounding special offers and 12 month discounts - they may sound good - but usually you pay back much more than you save after another 3 or 4 years.
Watch out for lower repayments on extended mortgages - some lenders or brokers may offer 35 yr mortgages - with lower monthly payments - but the overall interest payments on these will be much much more.
Also some lenders may offer you a bigger mortgage if you take out a fixed rate mortgage for 5 years. They don't have to do the "stress test" to see if you could afford the repayments if interest rates rose by 2%.
Click to expand...

Looks like AIB are offering a slightly better rate at the moment according to this [broken link removed]
 
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