Minimum loan amount required to get tracker rate?

H

hjrdee

Registered User
Messages
160
Is it true that you cannot get a tracker variable unless you borrow €150,000 or more. Spoke to a mortgage broker today and that was his story?

Haven't heard it before, just wanna be sure.
 
Re: Tracker Variable

I don't think that's true. Some trackers don't specify any minimum loan size. See the best buys list in the area for example. What sort of mortgage broker was this and what lenders do they deal with?
 
I know he deals with PTSB and IIB at least, not sure who else, but he said minimum to qualify for Tracker was 150,000. Unless he meant for investment property only?
 
hjrdee said:
I know he deals with PTSB and IIB at least, not sure who else, but he said minimum to qualify for Tracker was 150,000. Unless he meant for investment property only?
Click to expand...

some banks have a different rate tracker for over and under €150,000...

could that be it ?
 
The investment property issue could be key too. The best buys list lists a few residential investment property mortgage packages but the others are all for owner occupied PPRs.
 
Spoke to a mortgage broker today and that was his story?
Click to expand...

I have a tracker rate(3.05 with U First a/c / 3.15 without) with UB for 125k - which I am drawing down next week. There is a lower tracker rate if you have a lower LTV - less than 60% I think. Hope to haggle them into giving me the lower rate the day a re-valuation shows a LTV <60%.
Maybe hes trying to steer you towards something he can make a few more yoyos on?
 
I was offered a tracker of 2.85% (with UFirst Current A/c) by Ulster Bank on €60,000. This is for less than 60% LTV.

I would definitely check around and maybe go direct to banks yourself.

Rebecca
 
hjrdee - are you looking for a mortgage on an investment property? If so then you will generally be charged a premium over the rate that an owner occupier would get for the same property.
 
no, I will be looking for a mtg on a PPR. My mort. will be 100% as I already own site, or will rather when i get it transferred into my name!

Won't be dealing with him anyway just rang him to find out some info, re rates etc. I spoke to another mtg broker and he said so long as I had site in my name I could get mtg for 100%.

Seems like a good option as I cant afford to buy, so will settle to build for the time being. Surely with no site cost I can build decent house and have it finished for about 100-110K?
 
Do you really need to go through a broker? If not you should consider just shopping around yourself for the mortgage, mortgage protection life assurance, house insurance etc. and cut out the middle man.

Surely with no site cost I can build decent house and have it finished for about 100-110K?
Click to expand...

You would want to plan and cost the project carefully to make sure that you will be within budget. If this is a self build then chances are the lender will require you to submit detailed plans and to draw down the mortgage in stages as various milestones of the development are met.
 
100 - 110K sounds way too low to me, unless you are going to self-build.

If not, then €100 per sq. ft is a rough guide. A friend of mine is building a bungalow near a small town in Mayo and even with her father digging the foundations and giving her the site, the cheapest she can get a 2000 sq ft house built for is €160,000.

Rebecca
 
ClubMan said:
Do you really need to go through a broker? If not you should consider just shopping around yourself for the mortgage, mortgage protection life assurance, house insurance etc. and cut out the middle man.
Click to expand...
Clubman, why do you recommend not going to a broker? In what way does a broker act as a middleman? How can you save money by avoiding a broker? I am very curious!
 
Last edited by a moderator:
out of curiosity, how big is an average size house? I have no concept of the square ft system, so am unsure of how big the house mite be. we were thinking of a two story 4 bed house? About 1500 Sq. Ft maybe sound reasonable or is that too small for a 4 bed
 
Well here in the sticks, nobody I know has built a house for much less than 2000 sq ft. The norm. is more around 2500 sq ft. Most people build 4 beds at this but with a sun room or study also.

1500 sq ft. is small for around these here parts and would be hard enough sell if you ever had to because you would have to compete with much more spacious houses for the same price.

I suppose it probably depends on the location. Definitely away from cities or big towns 1500sq ft is small. Have a look at those books of plans or any of the websites.

Bear in mind that the difference in building a 4 bed house of 1500 sq ft and 2000 sq ft may not be on a sq. ft. pro-rata basis (same no. of bathrooms, much of the same labour costs involved, etc. etc). You need to talk to some engineers and builders to get an idea of realistic prices in your area.

Rebecca
 
thanks missribena,

think I'll have to go back to the drawing board if it costs an avg of €100 per sq, ft to build a house, esp. if house is gonna be about 2000 sq ft!
 
Don't go to the drawing board yet. Do ring around locally first. My figures are just ballparks and like I said my friend went from a ballpark of €200K to €160K by phoning around.

Rebecca
 
yeah i best talk to an architect and see what he says. only prob with that is there very expensive to talk to!!
 
I'd try a local civil engineer, if you just want ball parks and are not after anything out of the ordinary.

Rebecca
 
how do i fnd out who the local civil engineer is? Is this a silly question cos I've no clue where to look!!
 
You must log in or register to reply here.
Menu
Log in
Register