NIB mortgage from ECB + .5%

Surely there can't be anything sinister in using NIB's legal people?
It's a straightforward process...and one we're all being routinely ripped off on! fair play to NIB, this seems to be one of those rare cases where it the customer is getting a transparent good deal.

Does this/should this give a fiduciary duty to all mortgages brokers (who have an agency from NIB) to direct their clients to the NIB tracker regardless of the varying level of commissions which might be on offer ?

(assuming that the client a) wants a tracker b) the LTV is 80% or less and c) client meets NIB lending criteria)

Question to JFitzer:

You say that you're 'also going to do a top-up' with your mortgage when changing to NIB.

I am currently in the process of looking to move my mortgage, from Ulster Bank to either BoI Scotland or NIB. When I will be moving to NIB, I will also be looking for a top-up. NIB have told me that they will only do the top-up towards building costs for my house..estimates AND final invoices are required. they won't put the top-up against other loans (such as credit card / car loan) or anything else. Have you also come across those stipulations regarding toping up with NIB?

FYI My current mortgage outstanding is approx. 110K (house worth 240K) and when moving I will be moving the full mortgage up to 192K (LTV 80%). This involves a toping up of 82K.

Do any brokers deal with NIB? I was under the impression they were trying to cut out the middlemen and just deal with the customer.

NIB don't have a broker network so it's only possible to get this product by going direct. It is very good although one word of caution - from what I've seen they are inferring that you must move your banking to them or at least open an account with them; under the 1996 Consumer Credit Act you can not make the provision of a service or product conditional upon taking another product from the same provider. So no lender can insist you open an account or buy their mortgage protection, household insurance or mortgage payment protection. Do bear this in mind as that is where the profits lie - not the mortgage product.

Sarah

www.rea.ie

Jugovic, I am assuming what you are saying is that you already have a house as opposed to you are only just building it, and you want to raise the €82k to pay off other loans, credit cards etc. Mine was just to get my garden done to the amount of €10k my existing loan is €160k and the value is €400k so even after the topup my LTV is below 50%. They never asked me any question about the reason for it but that might have been because of the level of my topup. Maybe they just do not want people consolidating loans. Sorry I know this is of no help to you.

Sarah W, when I spoke to them yesterday they did not insist to me that I had to. I initially was going to though but for hassle I have decided not too for the time being. Guess I should check this out.

Hi,

This is my first post. We just decided to see if we can do anything about our mortgage sneaking up with the recent and impending rate increases.

The current value of our home is €490,000, much to our utter amazement - we bought it at €260,000 just 3 years ago - that's a 46.94% increase! We haven't had it valued, but a neighbour's identical house round the corner just sold this week for €495,000 and it didn't have the kitchen extension ours has.

Outstanding on our mortgage is €160,000, with 22 years remaining, currently on variable rate of 4.6% (4.7% APR) with PTSB. Current monthly payment is €920 or so.

LTV: 32.66%

Current ECB is 4.25, if I understand correctly?

http://www.ecb.int/stats/monetary/rates/html/index.en.html

As I read it, NIB would offer us ECB + 0.5% (4.75%) on my outstanding €160,000.

I saw an ad in a local paper last night for Liberty Mortgage Company, whose advertised rates seemed really good. It was actually my web searching for info on that which brought me here. Their ad says that monthly repayments on €150,000 over 20 years would be €866.

I'm guessing I'm like average Joe - life is busy and maths is boring, so how do I know what's best?

NIB's deal seems like a better deal overall, but the thing is, we also have a €20,000, 20-year BOI home improvement loan with monthly repayments of €190 or so AND a €9,000, 5-year BOI car loan with monthly repayments of €140 or so and we would love to consolidate all this. But a couple of posts here seem to suggest that NIB won't facilitate this?

I haven't been able to contact the NIB special number - work phone won't let me diall it.

Thanks for any advice or comments.

Mark

When building from scratch how will they calculate LTV for mortgage - building 2,700 sq foot house on 1 acre being inherited (est 30K value).
I want €300K loan to fully furnish and complete - how would I justify €380K land & building value to satisfy 80% LTV criteria for NIB mortgage.

Hey Phaedrus...nearly my first post too.
Current ECB rate is 3.25%. I'm in a pretty similar boat to yourself, without the other borrowings. This NIB mortgage seems ideal for us.
We'll end up paying roughly .5% above the ECB rate which is a lot better than the variable rates if IIB(mine) and PTSB(yours).
Consolidating your loans shouldn't be a problem at all.
I reckon this is the deal a lot of people are waiting for...except the Mortgage Brokers who'll lose out.

Hi Andy Doof / Phaedrus,

I was informed by my NIB branch that they would not consolidate other outstanding loans that I have. I had an outstanding credit card loan with MBNA @ 15,000 that they refused to pay off as part of my top-up while moving my mortgage over to them.

If either of ye get a differing opinion when talking to your local NIB branch, please let me know..

Finally got a definitive answer from the 3rd guy I spoke to, NIB will not consolidate loans. Your income must be strong enough to support the mortgage repayments and any extra loans.

Hello there. Forgive my ignorance but surely you just don't tell them you're consolidating loans? The last time I moved my mortgage I needed a little bit extra for an investment but didn't mention this to the bank. Dishonest...maybe. Relevant...I think not. You just have to calculate the relevant proportions for Interest Relief.

Ignorance forgiven.

What happens when the outstanding loans turn up when NIB run a credit check on you after you have declared you have no outstanding loans on their application form?

Hi Andy,

They told me that they will only put money against home improvements (building work) that would need to be done on your property..thats fair enough, we may all know a builder or two that could do up a quotation for you for an amount that you want to top-up with. You could then of course use that money anyway you want (consolidate loans etc). BUT they have informed me that invoices are required at the end of the day when the work has been completed. My own family are involved in building and they wouldn't be very keen to hand over invoices, because what if the bank is audited etc. as this work is not going to be done by me.

NIB won't put money towards anything else. For example, if you said you wanted to buy a car etc. they won't allow that.

My solicitor and myself have just received the loan approval documents from NIB and we're going to have a good look through them to see if the invoice stipulation is included in it. I obviously don't want to use the money for building work but other things.

Thats' my take on it anyway!!

Plus it looks like NIB are looking for both estimates of work to be carried out and invoices for the works - presumably the additional funds will be released on the invoices, not the estimates?

Sarah

www.rea.ie

Crossed posts.....

I have to also add that the banks credit check (prior to issue of loan offer) will show all outstanding loans, including credit card loans.

A fair point. I know lenders have tightened things up but it's not a massive hurdle. With this LTV mortgage we're talking about people with a reasonable amount of equity built up in their homes. If your home is worth 600K and your outstanding mortgage is 350K I don't think NIB are going to turn down an application for 400K or even 480K as it'll mean a better margin for them.

Hi Sarah,

As far as I know, the loan offer is approved based on the supply of quotations. When you draw-down your loan, the top up that you want will be put into your account. You are then to supply the invoices at a future date to prove the work has been done.

As I said, I am going to have a read of the loan documentation very closely over the weekend.

As an after point on that, they would prefer you to draw down the full amount at the start rather than stage payments of a top-up. It is actually better for you from a rate viewpoint. Stage payments would be classed at the standard interest rate (higher that ECB tracker), but if you draw down the full top-up at the start you can avail of the LTV ratio rate of the full amount.

Andy they obviously will turn it down, I'm at 65% loan to value and looking to pay off a car loan. NIB will not allow me to do this as my salary is not strong enough to pay for car loan and the mortgage repayments according to their criteria even though on my current lenders criteria I easily fit in.
I'm with Ulster Bank by the way (no other allegiance to them) who allow me to use 50% of my income to cover the mortgage whereas NIB will only allow me to use 40%.