NIB - Pushing LTV v Offset

Y

yop

Registered User
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Lads,
We are just finished a self build and have been on bridging finance during the course of the build, now we wish to sort of the mortgage and chose a long time ago an Offset mortgage.
We generally will have 3-7k euro in our current account + a savings account so this scenario suited the benefits of having an offset mortgage.

We have a mortgage of 220k euro over 25 years. House value is in or about 280k euro.

I rang the bank there the last day to sort it out and told them I wanted to go with the offset but I was told that the LTV would suit us better, I said why and he said he would send out the literature and it would explain but to be honest I am lost with it.

Could anyone roughly explain why the LTV might be a better option or are the bank trying to pull a fast one.

Thanks
 
I vaguely remember hearing that unless you'd more than €38,000 on deposit all the time with an average mortgage the offset ended up more expensive. They're telling the truth!
 
Go to a broker, they'll be able to give you independent advice and tell you honestly which is better for you. First Active have an offset product as well but according to some other postings on this site, they're not very helpful and have alot of problems dealing with transactions
 
aaa1 said:
Go to a broker, they'll be able to give you independent advice and tell you honestly which is better for you. First Active have an offset product as well but according to some other postings on this site, they're not very helpful and have alot of problems dealing with transactions
Click to expand...

This is not accurate. NIB do not deal with brokers.
 
Beacause you built your own house chances are your house is worth far more than your mortgage if you had a valuation.
The LTV is a more secure product for the bank so the intrest rates tend to be lower for the customer than for say a 100% mortgage. the lower the loan to value the better rate you should get - look at the internet site to see the advertised rates and see for yourself.

The offset product seems to be good for cash rich folks. The intrest on your savings account with cash sitting in it is offset against your mortgage account - great if you have a few grand to just look at but not touch.

talking to brokers can be misleading - they are first and foremost business people who will sell you / tell you something they want you to hear, you still have to do your homework.

I can stand corrected if any of this is incorrect.
 
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