NIB vs Halifax - confused

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larkin

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I qualify for LTV 73% mortgage of 220k, and have narrowed it down to NIB LTV Tracker or Halifax LTV tracker.

NIB are offering 4.73% with an APR of 4.84%

Halifax are offering 4% for the 1st year, going to 4.75% after that, with an overall APR is 4.81% (from their web site)

The Halifax APR is less so isn;t it the cheapest? But I'm reading everywhere that NIB are the cheapest.. What am I missing?
 
If your mortgage is 35 years or less, the Halifax option will be cheaper in the long run.

Average rate of 4% for one year + 4.75% for 34 years is 4.7285% overall.
 
Thanks for your replies, I'm not going mad after all. Just a 2-day crash-course on mortgages has my head a bit blown..
 
But.... with NIB you might be able to go on a better rate when (if) your LTV reduces in a few years. You would just need to pay a valuation fee to confirm the new LTV. Worth thinking about?
 
larkin said:
I qualify for LTV 73% mortgage of 220k, and have narrowed it down to NIB LTV Tracker or Halifax LTV tracker.

NIB are offering 4.73% with an APR of 4.84%

Halifax are offering 4% for the 1st year, going to 4.75% after that, with an overall APR is 4.81% (from their web site)

The Halifax APR is less so isn;t it the cheapest? But I'm reading everywhere that NIB are the cheapest.. What am I missing?
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Where did you see 4.73%? From their website an LTV of 60-80% the rates is 5.12%

[broken link removed]
 
[broken link removed] Use the LTV calculator on their website. It is 4.73%...the ECB tracker is a different product. It looks like NIB have changed the pricing structure of the LTV mortgage product.
 
Larkin - I think you might have the Halifax figures wrong. For LTV of 73% the first year rate is 4.4% not 4%. It still probably works out slightly cheaper (Example 25 yrs 200k borrowed - the NIB interest would be 141380.57 the Halifax interest would be 1021 less over the 25 years).
The lower repayments in year one might be of more use to you too - but as I said earlier - maybe think about your options in 3 or 4 years time if/when your LTV is lowered.
 
John Rambo said:
[broken link removed] Use the LTV calculator on their website. It is 4.73%...the ECB tracker is a different product. It looks like NIB have changed the pricing structure of the LTV mortgage product.
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Hmmm, is it a different product? They both seem to calculate rates using the LTV. What are the advantages of the EBC tracker as in, why would anyone choose it?
 
DrMoriarty said:
NIB are the cheapest if your LTV is <50%.
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LDFerguson said:
If your mortgage is 35 years or less, the Halifax option will be cheaper in the long run.
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John Rambo said:
It looks like NIB have changed the pricing structure...
Click to expand...
irishlinks said:
I think you might have the Halifax figures wrong.
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irishlinks said:
Wrong .....NIB still have the lowest long term tracker rates for LTV's under 75%.
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Got all that, larkin? :)
 
Yis are gas...

Looks like Halifax are cheaper alright, BUT, long term I can get my NIB rate reduced if I pay off lump sums which I intend to do - didn't check if I could do this with Halifax (?anyone)

PS (Irishlinks) Yes, I meant to say 4.4 for 1st year from Halifax, that was a typo.
 
and after meeting that banks and getting direct quotes I'm further confused, tho it's only about a small amount. They've given me these quotes:

NIB: monthy repayment 1145, interest rate 4.73, APR 4.84
HFX: monthy repayment 1146, interest rate 4.75, APR 4.82

How come the NIB APR is bigger, but their monthly repayments less? I thought the APR was a direct function of the amount you pay back..
 
I never compare APR's myself - I find it more useful to compare actual repayments or just compare actual interest rates.
 
larkin said:
How come the NIB APR is bigger, but their monthly repayments less? I thought the APR was a direct function of the amount you pay back..
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Nope - APR is an attempt to calculate the long-term cost. So in Halifax's case, the APR would take account of the first year discount. I don't use APRs for comparison as the methods of calculation of APR are not uniform across all banks. Nominal rate (the 4.73% rate in NIB's case) or Cost per Thousand (CPT) make for more precise comparisons.
 
LDFerguson said:
Nope - APR is an attempt to calculate the long-term cost. So in Halifax's case, the APR would take account of the first year discount. I don't use APRs for comparison as the methods of calculation of APR are not uniform across all banks. Nominal rate (the 4.73% rate in NIB's case) or Cost per Thousand (CPT) make for more precise comparisons.
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I always understood that the whole point of the APR was that the formula was standard across all institutions and that this was why the financial regulator and various regulations required advertisements by banks always to include the apr as opposed to the headline rate?
In fact I remember seeing a broker being prosecuted for an advertisement where they had left out the apr.

Or like Pam Ewing in the shower did I dream all that?
 
Madangan said:
Or like Pam Ewing in the shower did I dream all that?
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You're showing your age. But then again, so am I. I seem to recall having a crush on Pam Ewing.

You're absolutely correct that APRs must be shown in all promotional material. But you'd expect that the APR for two identical tracker mortgages would be the same wouldn't you? Often they aren't.

I've seen loads of examples of this over the past while. Here's just one that I can grab from the web at this moment.

[broken link removed] ECB + 1.05% tracker - second last on this list at the bottom of the page. APR 5.2%.

[broken link removed]ECB+1.05% tracker - first on the list here. APR 5.1%.
 
Thanks everybody, you've been a great help.

The Halifax average base rate is 4.74 ... ((4.4*1)+(4.75*29))/30years
While the NIB base rate is 4.73, which makes them just a bit cheaper (1 euro per month but who's counting..)

Bet Halifax have the discounted 1st year to confuse people who are comparing them with NIB..

Pam
 
irishlinks said:
But.... with NIB you might be able to go on a better rate when (if) your LTV reduces in a few years. You would just need to pay a valuation fee to confirm the new LTV. Worth thinking about?
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Just confirmed with Halifax today that they will do this too, and if it's within 4 years you don't need a valuation, just 95 euro for rearrangement of the mortgage terms..
 
larkin said:
Just confirmed with Halifax today that they will do this too, and if it's within 4 years you don't need a valuation, just 95 euro for rearrangement of the mortgage terms..
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But - with Halifax their LTV rates are banded - ie. one rate for 75 to 90 % and another rate for 50 to 75% and another for under 50%. You would have to wait till you fell into the next "band" - which for you would be "less than 50%". It could be a long wait.. WIth NIB they have a different rate for every single LTV from 50% to 80%. I'm not saying you would apply for a change every 1% drop in LTV - but you could go to 4.65% when/if your LTV got to 65%. I am pretty sure Halifax wouldn't do that .
 
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