Mortgage Comparison

[phester]

I am torn between 2 quotes. My loan to value that i need is somewhere in the region of 66% to 76% depending on how much renovation I do at the start.

Assuming 66%
Ulster bank offered me a 1.1% tracker for 40 years with a >60% LTV
0.95 tracker for 40 years with a <60% LTV
with a 1 year fixed rate (was stated at 3.2% before ECB increase) but I am guessing it will go up until I draw down on it.

Bank of scotland offered me a 1% tracker for 39 years with a >75% LTV
with a 2 year diso**** rate. Ill need to refer to the quotes to get the discount rate(not to hand).

Bank of scotland will offer me more money (in principle at least) 230k where as Ulster bank offered 209 on principle and came back with 200k limit.

Any taughts on how to compare. I was thinking that cost per thousand would be the best way as it took discount period and everything into account and lets me work out my monthly repayments easily. But bank of scotland cant provide this figure??

 

[irishpancake]

Hi Phester.

I posted [broken link removed] yesterday in response to a similar query about BoS cost/thousand, on various mortgage offerings over terms from 20 to 40 years.

 

[bobk]

Keep in mind that you can (and probably should) remortgage anytime you like.

My advice would be to consider taking advantage of the 2 year discount variable and assess your options after that.

If/when your LTV becomes lower than 60% then you can avail of the .95% tracker with Ulster Bank. They will even pay your legal fees to do so.

BTW First time buyers aren't eligble for the 2 year discount rate with BOS.

 

[phester]

Hi Phester.

I posted [broken link removed] yesterday in response to a similar query about BoS cost/thousand, on various mortgage offerings over terms from 20 to 40 years.

Yes but the rate that is on my quote is 3.23%. Maybe this is the rate over the whole loan not including the discount period and the web page shows the APR* for the entire loan including the discount perido.

Is it not strange that even though the (old) ecb rate was 2.25% the tracker rate is 1% the APR they give is 3.18% and 3.44% (im guessing that both are 1% tracker)

 

[Paraic]

*APR quoted is a representative example and is based on a €100,000 Annuity / Repayment loan over a 20 year period. The interest rates specified above are effective on applications received from 24th January 2006 and may vary before the date of completion of your mortgage.

Tracker Rate
Bank of Scotland (Ireland) promises that a tracker rate charged on a mortgage in Ireland will track European Base Rate** for the full term of your mortgage.

In the event of an increase or decrease in the published European Base Rate** we will require up to one month from the date of such increase or decrease to fully implement any amendment to our tracker rate.

For loans up to 75% of the property value, the rate will be 1.00% above European Base Rate**. For loans over 75% of the property value, the rate will be 1.25% above European Base Rate. **

Paraic@obrienfinlay.ie

 

[phester]

Keep in mind that you can (and probably should) remortgage anytime you like.

My advice would be to consider taking advantage of the 2 year discount variable and assess your options after that.

If/when your LTV becomes lower than 60% then you can avail of the .95% tracker with Ulster Bank. They will even pay your legal fees to do so.

BTW First time buyers aren't eligble for the 2 year discount rate with BOS.

I taught that too, But she said that since I have capital and have a low LTV for a FTB then it will be no problem.
Again it still is in the on principle stage,

As for the big long quote on BOSI, I have read all the print but would of taught that the cost per thousand was given for any mortgage amount and so was the true reflection of the mortgage. APR I was under the impression also that it would be for any amount. If these rates vary for loan amounts then do we have to compare loan amounts with different vendors all the time?

 

[irishpancake]

Phester, are you absolutely sure that BoSI are in fact offering you their 2-year discounted switcher product??

I ask, because they also offer FTB's a product which gives you a 2-year Interest-Only option:

Choose from a range of interest rates!

At Bank of Scotland (Ireland) we want to make life, and owning your own home, as easy as possible for you. That’s why we offer first time buyers the low-start option of making interest-only repayments for the first two years. This considerably reduces your monthly repayments and eases the initial financial pressure. It also gives you more money to spend on the fun things like furnishing and decorating your home. For example, the monthly repayments on a €250,000 mortgage on a standard variable rate of 3.6% for a 20 year loan are €1,462 per month. If you choose the interest-only option your monthly repayments would be reduced to just €625 for the 2 year interest only period.

You should get a definitive written quote from them on this, as 2-year Interest-Only is a very different kettle of fish from the 2-year discounted Switcher Tracker.

 

[phester]

yes I have a printed out quote from them, if says that its the Mover 1% tracker with 2yr discount. APR 3.23%. repayments of 871.86pm (outside the discount period) 39year term.

Apporval is in principle only so maybe when I apply for it they will refuse me. The girl worked in an insurance brooker before so maybe she is new to the game. Time will tell I guess

 

[irishlinks]

If you can get the BOS discounted rate - take it. It works out at ecb + 0.7% for 2 years with LTV greater than 75% If the LTV is 75% or less the discount gives you ecb + 0.45%.