SVR Mortgage (4.4%)

K

Kerrigan

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I'm with a foreign lender who is charging me around the 4.4% mark. I have tried to make a switch to another lender but have so far failed. I'm paying a King's ransom each month on a mortgage repayment. I have asked for the interest rate to be lowered or at least changed to a fixed rate; I was declined a rate change and I was briskly sweep away from the idea of fixing. I am not prepared to sell the property at this time as there is no equity. My provider is now a loan management company and it seems may be winding down their loan book.

Is my case doomed if I cannot find a bank who will take me on as a mortgage customer?
 
Hi Kerrigan

Are you with BoSI?

Why were you declined by other lenders?
What is your Loan to Value?
What is your Loan to Income?
Have you a clean ICB record?

Brendan
 
Can you name the foreign lender please.

What do you need to do to get another bank to take you on.

The best way to avoid interest if you cannot switch is to overpay.
 
Also is it a residential property or is it let out ? This makes a differance as you get interest relief on 3/4 of it so the real cost is about 2.5%
 
Hi Folks,

Some background - As a much younger person I was made bankrupt due to a failed business; I lost everything. Those were days when bankruptcy was seen as draconian; some years later I reestablished myself and finally made good. I purchased investment properties with cash and resold and was able to build up a war chest. I vowed never to rely on a bank again and I didn't until I foolishly accepted a loan offer on a residential property; my previous difficulties were obviously overlooked at a time when the country was perceived to be booming. I have failed to currently move my residential mortgage as I believe my past mistakes have come back to bite me.
Loan 380k
Value 310K
Income approximately 120k A.T.

I am lobbing approximately 2.3k off each month. I would like a clear strategy how to clear this mortgage off with little damage to my wallet.

Bronte, mortgage was with ACC now ACC Loan Management.

Electo, it is my primary residence. I had TRS since 05 but it ended late last year. Is this accurate?

Brendan, kudos to you. Keep up the excellent work.
 
Last edited:
Hi Kerrigan,

your TRS should not end until 2017 - see the tables here.

I think you need to contact Revenue to get it reinstated.
 
Hi Kerrigan
Sorry but maybe I am reading this slightly incorrectly, so please do confirm if I am.
You have a LTV of 122.5% (380/310), and you are being charged 4.4% for it.

Given the general rate of SVR, I doubt you can call this a rip off. It also tends to ignore your previous financial history which is no bad thing. I don't think foreign v domestic bank has anything to do with this

If you were to pay off 100k to bring LTV to 90% and move to BOI in the morning, you would be on 4.5%. A few others have a SVR at 4.3%, but this would require you to be eligible for the mortgage in the first instance.

The lower rates are those with better LTV's (below 80%/60%).

This does not take into account the overall high mortgage SVR rates being charged, but that is a different discussion


Out of curiosity, what do YOU think is a fair interest rate for your specific case given the standard SVR rates in Ireland today? If you were lending this money, what return would you want to make based on the risks involved ?
 
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