NIB mortgage from ECB + .5%

The conditions seem far more vigorous than anything out there at the moment...fair enough given the value this product gives to the customer.
So basically if I've a mortgage of 250K with IIB on a property worth 500K NIB will only replicate that amount unless I'm doing "home improvements"?
Sounds bizarre, but it is a bank we're talking about...
 
Looks like it once your salary can cover the repayments on 250k according to their criteria.

It's not bizarre, they are looking for a certain calibre of client - high net/low risk so they can offer the mortgage and then make the serious money by offering other higher margin products.
 
Well Andy,

They will have no problem switching the 250K mortgage from IIB, but with any top-up's on the way it needs to be home improvements only.

A good idea might be to get the top-ups from IIB at the moment to consolidate loans etc and then switch the mortgage in a few months..I have found IIB to be extemely helpful whenever I have dealt with them, whats your opinion of them?

I have tried that with my 'friendly' Ulster Bank but to no avail...
 
Does anyone know of a land-base phone line for this NIB LTV product - I can't get through on the 18900 number. Now maths has suddenly become exciting!

Using the LTV calculator on the NIB website, if I borrowed €190,000, over 20 years (to cover the current mortgage and the 2 BOI loans), monthly repayments would be €1,126 at 3.82%. That's saving about €124 a month (or almost €1,500 a year) over our current combined €1,250. I think I expected a more impressive saving, but it certainly would be better!

It also means our SSIA could be spent on my Lasik eye surgery and something nice for my wife and some savings instead of repaying the car loan.

Mark
 
Hey Mark...I agree the savings are pretty impressive. Personally I'm going to wait for a couple of months and see how the other lenders respond and then decide. You should definitely go for the eye surgery...I had it done 6 years ago and haven't looked back.
I think Jugovic has made an interesting point though. You can't top-up unless it's for home improvements. Prohibitive if you want to buy an overseas property, start your own business or whatever.
 
Wow! This post is flying along, isn't it.

The no-consolidating other loans clause seems a bit flawed. I'm currently already paying €1250 per month between my three existing loans - €920 mortgage + €190 home improvements loan + €140 car loan = €1250.

If I got one LTV loan from NIB to cover all three current loans, I'd be repaying €124 per month LESS than I currently am - pardon my naiivety, but doesn't that amount to my ability to repay NIB actually being increased?!

Mark
 
Yes it does Phaedrus, but it looks like you are not the target client NIB is looking for. Oterwise they would not have structured their offering as they have. I am sure they have put a lot of dosh and thinking into this offering and are not doing it to be a friend of the people. Don't forget they are a bank, their raison d'etre is to make as much easy money as possible from their clients.
 
Sarah W said:
Rules is rules, I guess.
Click to expand...
For the sake of playing devils advocate....

NIB view the need of consolidating loans as showing risk. They set the strict criteria on this offer to minimise risk. They want a high volume of customers, a small margin of profit but with very few defaulters costing them money.

They made it strict for a reason, and not allowing consolidation of loans was no accident, IMHO.

Post crossed with NorfBank
 
Exactly...they're happy to lower their margins providing the risk is appropriate. They do seem pretty serious about the home improvements aspect of the loan. In the past a few fake estimates from one of your buddies would suffice. I don't think the intransigence on certain issues should take away from the fact that this seems to be a fantastic offer.
On the eye side of things I wouldn't go near any of those 995 per eye merchants. Blackrock Clinic is your only man...tax relief makes it all the more fun.
 
So if I understand correctly:

If my home improvement (costing €20,000) was in the future, NIB's LTV mortgage would cover it, but the fact that my extension was completed last Christmas and I took out a "secured personal loan" (effectively a second - additional - mortgage, secured against the property) rather than re-mortgage (thus avoiding all the fees associated with re-mortgaging), I'm bunched?

In effect, if I were to re-mortgage with anyone else, any new loan would HAVE to cover that separate €20,000 - it is actually a mini-mortgage, directly attached to the home improvement.

Again, I could be displaying some naiivety, but it seems to me that NIB should include my €20,000 loan. Okay, maybe not the car loan (bye-bye eye surgery :( ), but I can see reason in that.

Mark
 
I think yours is a slightly unusual case and a victim of NIB's caution. You've taken out a loan to make improvements to your home, adding value to the asset. Morally you should be able to avail of NIB's offer.
However their policy is to weed out those who remortgage to buy cars, buy dodgy Eddie Hobbs Cape Verde property or generally p..s the money against the wind.
Maybe consolidate the loans with your existing lender and then move the whole lot? Or move to the lender who'll subsidise the process the most and then move to NIB. Be a mortgage slapper so to speak...
 
If you do become a "mortgage slapper" as was so eloquently put, beware of the clawback of legal fees if you switch your switched mortgage within 5 years. I don't know if NIB have a clawback in place but presumably there is..

* Our switching service is subject to terms and conditions which are available on request.
 
I wasn't advocating that course of action...it might just be the only way to get all your borrowings into this NIB product
 
Phaedrus

If you have your receipts for your extention and can prove you took out the loan for this purpose why don't you go in to see NIB at a branch and see what they will do. You never know.
 
This seems like an excellent product. I am moving house and have been approved by BOS for their tracker (ECB + .45% for 2 years and then ECB + 1%) for €225K on a salary of approx. €45K. I have since decided in the current market I dont want to put a noose around my neck with a mortgage of €225K on my own, so am going to buy a cheaper property.

I think this product from NIB would give me better value over the life of the mortgage than the BOS product.

I phoned the customer service line this morning with a view to setting up an appointment in either Walkinstown or Blanchardstown branch, both which would be nearest to me. Walkinstown booked out until 7th November and Blanchardstown until 2nd. The man on the phone told me that they are inundated with people trying to make appointments.

So if anyone is interested, book your appointment soon!
 
I'm really glad I rang them yesterday morning so MandaC as I've an appointment in the Walkinstown branch for this Wednesday. We're supposed to be signing in November so I need a fairly urgent decision from them (have approval from existing mortgage lender PTSB at the moment but they're not competitive compared to NIB or BoS).
 
just wondering has anyone gone to PTSB to say they're going to move to NIB?other banks will surely have to follow with something special to offer.
 
For self build project - how will NIB or other banks for that matter work out the LTV when mortgage is being applied for?
 
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