Current account mortages

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munsterman25

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I've been looking online for info on current account mortgages but cant seem to find any. Anyone point me in the direction of some info or give me a quick explanation with advantages disadvantages
 
Current Account

I have a current account mortgage with First Active since last December. it seems to be working out ok for me. what it means is that you have a current account with first active aswell as a mortgage or facility account. Any money in your current account is offset against the mortgage on a daily basis (interest is calculated daily) , therefore the more money you ahve in your current account the less interest you pay. this should result in you paying off your mortgage over a shorter period.
 
Re: Current Account

TEddy bear. What interest rate are you charged? So your interest is caluclated on your mortgage amount less the amount in your current account? eg mortagage of 100k and 2k in your account therefore interest calculated on 98K, am i right?

Any limitations on switching it in the future?
 
Re: Current Account

NIB are now doing an OffSet mortgage and I find that they are offering a better product, not because First Active shafted me but because of 2 points that I can see are a big difference.
1 - Interest rate for NIB is 3.09% while First Active are 3.29%

2. - First Active only link to your current account while NIB will also link into your savings accounts ( they can link into 6 different accounts)
 
Re: Current Account

Pants, any special conditions you ahve to meet. LTV's etc?
 
Re: Current Account

There is lad but I do not have them to hand but in relation to us and the amount we were borrowing (220k) we are getting 80% of site value and 90% of overall requested amount.
 
Re: Current Account

ooooh 80% of site value. Would they not give you any more than that. Id hope to but a site but would hope to ge 90% of its cost and again 90% of cost of build
 
Re: Current Account

He did mention that we could push it higher if we wished but we "incorporated" some of the extra site funding into the building costs
 
Re: Current Account

Mind if I ask where your buying and building pants
 
Re: Current Account

"Mind if I ask where your buying and building pants "

I am buying my pants in Dunness Stores, tee -shirts in pennys and boots in Timberland
Any other clothes advice please ask
 
Re: Current Account

Down in Contae Maigheo lad
 
Re: Current Account

I'm alright on the clothes front.

So Are you repaying weekly rather than monthly, I suppose it makes sense to do that if your interest is calculated daily.

NIB one looks good alright. IF the APR is 3.09%. Seems to good to be true though. Are there any hidden extras with yours?
 
Re: Current Account

The interest is calculated daily but payed for monthly.

Hidden extras, I have found no extra clauses lad, it seems that since the BEV Cooper Flynn incident they are keen for some business and Danska (I think) took them over are also keen to get into the market.
 
Re: Current Account

As far as I heard, there is an addtional cost - the mortgage protection. As I understand it Current account mortgages insist on having a level term mortgage protection - much more expensive than traditional mortgage protection products. I saw an example of this, and with the "extra" insurance costs, the advantages were totally wiped out. Love to hear if anyone can confirm this?
 
Re: Current Account

I can confirm that there is a requirement to have level term insurance, now to say that it wipes out the benefits I cannot actual confirm this, I would appreciate if someone could.
 
Re: Current Account

I suspected there was going to be a catch all right. anyone confirm this
 
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I am not sure if the mortgage payment protection is mandatory, but what I remember from talking to NIB last month is that if I want mortgage payment protection, I will have to start it from day one. That is, I cannot opt to not to take it now, and subscribe later when I feel work situation isn’t safe etc! However, I could start with a minimum mortgage protection now (works out around 5 or 6 euros a month I think, to cover 100 euros or so); I can increase (and then decrease back to minimum) at a later stage if I wish.

Now, I am really curious to know what experts think of NIB Offset in general, is it really as good as it sounds?

thanks!
 
Re: -

Lads, my apologise, it is definately a requirement to have LEVEL TERM LIFE COVER!!! sorry not Mortgage protection!!!

But I will find out about the mortgage protection if I can !!

Sorry again!
 
Re: -

Folks,
Did a model of the above assuming the following:
Mortage of €250K, €10K average on deposit in the current account - got quotes for 35 year old non smoking male, for level term and for mortgage protection - turns out current account mortgage works out about €10 per month more expensive than a good tracker rate. I have assumed ulsterbank 2.95% tracker rate.
Doesnt look like a good product!
 
Re: -

MunsterMan - So you think that wil the level term life cover and that you actually lose money??
Even though the interest rate with NIB is 3.09%?

I have sent you PM there again
 
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