PTSB or BOI for a Mortgage

H

holyjoe

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Hi ,

I was hoping someone here can advise me.

We'v been offered a mortgage from BOI, and PTSB.

BOI is 3 yr fixed, @4.69%, and PTSB is 2 yr fixed @ 4.61%

But, PTSB allows me to put my partners name on the mortgage, and hence the house deeds, but BOI does not, as she is only on temporary contract at work, and if I put her name on the BOI mortgage application, we don't get the Mortgage we need.

Should we go with PTSB , which would be more straight forward, or is it worth sticking with BOI, for that extra %??

Is there much of a difference between both, or any other factors I should be considering?

advice much appreciated.

Jo
 
I know it's not the question you asked, but the most important thing is that you and your girlfriend do an agreement on the purchase of the house. You will find a very old draft here, but it outlines some of the principles

http://www.askaboutmoney.com/showthread.php?t=5003

if I put her name on the BOI mortgage application, we don't get the Mortgage we need.
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Are you saying that if you apply on your own, Bank of Ireland will give you €100,000, but if you apply jointly, they will give you only €90,000? This would be astonishing if it's true.

If you have most of the deposit and most of the income, you are probably better off buying the house on your own. If your girlfriend has a good contribution to the deposit and a good contribution to the repayments, a joint purchase is fine, as long as you have an agreement in place.

If, by any chance, your girfriend is in financial difficulty, e.g. a lot of creditors or unpaid bills, you should not buy jointly.

ptsb or Bank of Ireland?
There is really no way of knowing. Bank of Ireland is robustly pushing to maximise profits and avoid having to raise additional capital. ptsb is still state owned and is not under the same pressure. ptsb is well aware of the very negative impact on its reputation of the SVR issue last year. They will be slower to risk this again.

But, in reality, there is no way of knowing.
 
Brendan Burgess said:
Are you saying that if you apply on your own, Bank of Ireland will give you €100,000, but if you apply jointly, they will give you only €90,000? This would be astonishing if it's true.
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yes, this is what I am saying, and she has no bad debt, lots of savings, and has worked permanently over past 8 years, and in a good industry, only the contract she has now is not permanent.
 
BOI have a higher Standard variable rate than PTSB....4.5% vrs 4.34%


Would I be better off just go with the lower rate of SVR off PTSB, in the view that it wont rise much over the 2 years , as appose to 4.61 % for the 2 years fixed?
 
The most important thing is probably to get good legal advice on the implications of buying solely/jointly, etc. and it sounds as though this could limit your mortgage choices.

On SVR vs fixed, this usually depends on whether you would be able to afford increases in the SVR. A fixed rate will give you certainty on your repayments - but you will pay a premium for this. Any ECB rate increase is very unlikely in the next 12 months, while it is difficult to see significant increases in the next 2-3 years. A fixed rate would protect you from SVR increases unrelated to ECB rate moves, but I don't think this is more likely from BOI than PTSB - PTSB have bigger profitability issues than BOI for example.

On the rates that you've quoted and if you did want a fixed rate, the BOI fixed rate is probably more attractive than the PTSB fixed rate (3yrs vs 2yrs) while the PTSB fixed rate is 0.27% higher than the SVR - a higher premium for the fixed rate.
 
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