Current account mortages

  • Thread starter munsterman25
  • Start date
Re: -

Yep - I reckon going for a 2.95% tracker from any other bank, with reguar mortgage protection cover is a cheaper option - at least on the way I worked it, using the figures I did. Still think NIB are a pretty good bank to deal with though.
 
My first hand experiences of First Active CAM

Re the life cover, presumably if you build up a fund in the current account you cant just lump sum pay down the mortgage account and reduce your cover subsequently. The extra cover is the price you pay for flexibility of not "locking" your money into paying down your mortgage but yet having the interest (and term reduction if you so choose) benefits of paying down your mortgage.

I'm with first Active CAM find it grand, FA arent the easiest to deal with (address changes and other simple stuff like a cheque clearing system are minor annoyances). The internet options newly introduced mean you shouldnt have to visit the branch on a daily basis (as I was nearly doing!!).

I have a few bob in current account so I think the fairly miniscule differences in the interest rates are going to be wiped out - will crunch the numbers at some stage to test that theory and also factor in the extra life cover costs.

An interesting one for ye, a lot of people including me have SSIA's (on the max but started off slow in first 6 months). I intend lobbing this straight into current account - the great paying down the mortgage but yet potential access to the cash. Will this not make "offset" mortgages more popular in the next few years???

p.s. I heard some scare story about filling out a declaration form 3 months before your SSIA matures so you are not exit taxed at 23% on capital as well as interest. I presume this is widely covered elsewhere on the forums and will need to be made very public in due course - or there'll defo be a "reclaim the streets" style riot if loads of Joe Public's ripped off.
 
NIB offset

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

Rang NIB brach and they said this is not the case reducing balance is allowed ??? The brach is now getting in touch with head office !!! I

Have you got this information from the brach or head office ???

Maybe worth looking more into this !! Are you sure this is the case ??
 
Re: NIB offset

Just got a reply from headoffice and level term is not a reqiurement. !!!!!
 
Re: NIB offset

umm, I will have to go back and check the documentation again.
 
Re: -current account mortgages

Can someone explain the difference between level term life cover and ordinary mortgage protection please
 
Re: -current account mortgages

See . There is no real difference between the two except that mortgage protection life assurance is assigned to the lender.
 
Re: -

Why is there a big differenec in the price then, resulting in the potential saving in having a current acc mortgage being reduced
 
Re: -

Hi munsterman25,

I was told by NIB that there was no difference in the life cover that you take out if it is an offset or a tracher.

I myself is in the process of switching from a U-first current account to
an offset account.

The one main difference is that offset mortgage is not linked to the ECB unlike the tracker so the interest rate is at the "mercy" of the bank.
The interest is not FIXED to the ECB !!!

But after doing some calculations the saving in interest seems a good deal
esp if you have an SSIA maturing and not sure of what to do with the cash what do you think ?

There is also free banking available with no 9euro fee (as U-first charge)

Also the fact that you can offset it from a savings account means that
if the interest rates increased then your interest rate "should " be better on
your savings and you can offset this against your mortgage interest.


What do you think ?????

What are the real catches I ask !!
 
..

So can anyone take a stab on what the best mortgage out there might be, assuming like most people that most of you money is used up every month, and that your monthly savings are cleaned out every so often to pay for annual costs like insurance, car tax, TV licence etc.

This is assuming that the LTV is just around the 60% mark and that the mortgage is 250kish.

is one better off on the lowest tracker you can qualify for, or are there potential savings on an offset....or would they work out at much the same...
 
Re: ..

In general the cheapest mortgage will be lowest margin tracker available for one's specific circumstances (loan size, LTV ratio etc.). To estimate the further savings, if any, attributable to an offset/current account mortgage one would need to do some number crunching making assumptions about the average amount of money held on account etc. and see how the costs compare.
 
Re: ..

Level Term cover remains at the same amount for the term of the cover while Mortgage Protection reduces in-line with your mortgage. Hence why Level Term is more expensive.
 
Re: ..

Right now, the cheapest tracker is with NIB - I think its 2.79% which is pretty damm good. They are a bit fussy about LTV;s . Next best at the moment is Ulster, basic tracker of 2.95%, plus a reduction to 2.85% if you open a U first current account. Ulster offer good prices, but can be a bit messy to deal with. I have clients who have gone with the Ulster offer, and are happy now that the mortgage is up and running, but they can be a bit of a pain to get the paperwork straight with.
 
Re: ..

We decided on the NIB Offset mortgage after reading about it in the paper. They are offering 3.1% Tracker with 6 linked accounts to offset against. As we're expecting some cash from an inheritance we'll be effectively earning 3.1% on this when we lodge it into the offset account, which is better than any deposit account I know of. They offer the usual current a/c stuff, which is apparently free (haven't tested this yet - mortgage starts next week).

We went with the "Decreasing Life only" mortgage cover which costs EUR 26.41 per month for both myself and the wife. Our loan is 210K. The is also an EUR 80 "security fee" - don't ask me what that's for.

I called AIB, who I currently deal with, and they told me they couldn't compete with this. I'm quitting AIB and everything is moving to NIB.
 
Re: ..

Munsterdude said:
Right now, the cheapest tracker is with NIB - I think its 2.79% which is pretty damm good. They are a bit fussy about LTV;s . Next best at the moment is Ulster, basic tracker of 2.95%, plus a reduction to 2.85% if you open a U first current account. Ulster offer good prices, but can be a bit messy to deal with. I have clients who have gone with the Ulster offer, and are happy now that the mortgage is up and running, but they can be a bit of a pain to get the paperwork straight with.
Click to expand...


I am with U-first and I find that:

1. u-first isn't the cheapest current account 9 -euro a month and they have a lot of hidden charges e.g. charges for direct debit setup -
2. Very difficult to pay off lump sums you have to make out a draft to house mortgages which cost 2 euros
3. They are also not very good at adhering to written instructions - I ask them to reduce the term with the lump sum payment -instead they decreased my monthly payments.
4. I am willing to pay 600 euros to move from u-first to NIB..... That says it all

5. The one positive thing is that they give a free overdraft if you are inclined to be in that situation !
 
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