NIB mortgage from ECB + .5%

I got some further information from NIB

The requirement for a current account
There are no charges on the Easy current account. So you can set one up as a feeder account and keep your existing current account. So you set up a direct debit to the Easy account for your mortgage and use no other services if you wish.

Fixed rates
They use the Bloomberg Reference Rate. Apparently Bloomberg publish interbank rates every Friday morning for fixed rate loans. NIB will add .5%,.6% or .8% as appropriate.

Obviously, once you take out a loan, the rate is fixed. But the rate for new customers will change weekly.

Interest only
These are quite popular in Denmark. There is no limit on the time period.

Minimum loan: €20,000

How much will they lend?
40% of the net earnings of the person or couple.

First time buyers
I said that this was obviously not aimed at first time buyers and they said that first time buyers could switch to this product after a few years when their equity builds up to 20% of the value of their home.
 
The tool at the link below will calculate your repayments and APR for tracker and fixed rates. The Advanced tab displays the reference rates and the applicable margin.
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I'm already on a tracker with BoS. What's the likely hood of them matching this and it being offered to me?
 
I have just switched to NIB from PTSB.
Gave PTSB the option of doing something for me - but got nowhere - so switched.
Would agree with all the above comments re. BoSI.
I was looking for the best deal over the life of the loan - and not just the introductory gimmicks, to get you in.
The legal side of switching means it is something I would like to do as few times as as possible.
 
Rang my mortgage Company yesterday after NIB published the details of the new offer and was immediately offered a discount of 0.35% to stay, so I think it is certainly worth while ringing your existing lenders and seeing what is on offer.
 
greenfield said:
Rang my mortgage Company yesterday after NIB published the details of the new offer and was immediately offered a discount of 0.35% to stay, so I think it is certainly worth while ringing your existing lenders and seeing what is on offer.
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Are you at liberty to tell us your Mortage company?
 
Hi Squonk and Steelblue05

I am with (for the moment anyway!) ICS and the rate I was on before the discount was ECB and 1.25%
 
YouNeek, that is a terrible and stupid attitude for them to have, if they add up the amount of loans that will be moved from them I am sure it will accumulate to over the two million !!!

I just phoned NIB, my loan is on Interest Only and they said that it is not available on interest only loans, I pointed out that their website states that it is up to 60% LTV, the guy on the other end of the line was stumped. I am awaiting a phone back now.
 
jfitzer said:
YouNeek, that is a terrible and stupid attitude for them to have, if they add up the amount of loans that will be moved from them I am sure it will accumulate to over the two million !!!

I just phoned NIB, my loan is on Interest Only and they said that it is not available on interest only loans, I pointed out that their website states that it is up to 60% LTV, the guy on the other end of the line was stumped. I am awaiting a phone back now.
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Pretty stupid if other lenders don't try to compete. We're with Bank of Scotland, also interest only. The situation is the same, if you're on IO mortgage, reductions don't apply unless you change it to an annuity. We'll be looking elsewhere!!
 
To say that this is long overdue is an understatement.

I bought my first property in 1995. It was a small commercial (lockup/warehouse) building. It cost £72,000 including fees.

AIB lent me the money and charged me 1.5% over prime. Prime at the time was 6%, so I was paying 7.5%. In other words, they were putting a markup or profit margin of 25% on the money, and not a very large sum at that - and for a commercial property NOT a PPR.

In one of the first posts on this thread, someone wrote that he is paying 1.1% over the current prime of 3.25%. That is a markup of 34%!! And it is almost certainly on a vastly greater sum of money, given that property has risen about 10 fold in the last decade.

Is it any wonder AIB and BofI are making profits of €1bn plus? Of course it isn't. The margins are much greater and so are the sums borrowed.

Developer Sean Dunne bought up a chunk of Dublin 4 for €200m. Even if he went bust and the land became worthless (which will never happen) the bank he owes money to (AIB? BofI?) would lose about 10 weeks profit. That's all. Think about that!

I hope that NIB do very well with this product. 0.5% over prime is a margin of 16%. Not bad for doing sweet fanny adam.

D.
 
Lightweight, even more stupid of them as on IO they get more money over the term of the loan. I'll let you know what NIB say tomorrow when I get my call back
 
I am very tempted by the NIB deal and it would save me hundreds per year as we have >50% equity in the house, for a relatively small initial outlay. However, I am a cynic and I don't fully understand tracker mortgages as they were not common until recently.... My question:

What is to stop NIB changing the rate from ECB+0.5% to ECB+1.25% (e.g.) one year after introduction? Are they contractually obliged to keep this rate for the term of the mortgage?
 
Yes, it will be stated in your mortgage contract what rate will apply to you.
 
Del3D,

no need to be cynical. Tracker mortgages are good as the take the power and discretion over rates away from the bank.

I am on the best rate previous to this new offer. ECB + 0.79, also from NIB, for the life of the loan. That's the beauty of it, as I know the bank can't squeeze me for extra profits. They just charge me 0.79% fixed margin above the wholesale ECB rate.
 
Also, just to let people know that I rang NIB just there to see if I could switch from their already good value 0.79% tracker mortgage to their new LTV offer.

They put me through to a dedicated LTV mortgage telephone call centre, I suspect not in RoI.

It seems I can switch, they will send an info pack out to me.

But I may have to get a valuation, to confirm the LTV, even though i bought the house 1 year ago.
 
With regards to this new NIB offer, has anyone noticed that they hold you to whatever deal your on, and your valuation, for a period of 3 years. So, if you're on 70% LTV now, it would appear that you're held on that valuation for 3 years, even if your house value increases and your LTV decreases in the meantime.

Am I reading this right? And given the graduation of rates according to LTV, would this 3 year period make much difference?
 
Just received the call from NIB, they will do my interest only mortgage and as my LTV is below 50% I am getting the .5% above which is great. Whilst doing this I am also arranging a top up to do some bits and pieces so killing two birds with one stone. I can use their solicitors as zero cost or have €600 towards my own solicitor, think I will use them, make it easier I hope. I can take out one of their acconts and will also get a €100 towards my Valuation. The account in question has quarterly charges of €18 but there are no direct debit fees, etc. Overall saving about €70 per month on my mortgage so I'm quite happy.
 
Thanks - I will park my cynicism, tidy the house and get the valuer around!

Just on the legal fees though - Is it wise to go with the NIB legal switching service? Will they not have NIB's interest as their prime objective? ... maybe that's my cynicism sneaking back in.
 
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