I have a home loan currently with the Bank of Scotland which is a 2 year discounted rate of 0.45% above ECB (good rate!!). I have a year left at that rate and then it reverts to about 1.1 % above ECB (bad rate!!). I was wandering whether to switch to the NIB LTV mortgage now rather than in a years time after my discounted rate is finished? I am concerned that in a years time these excellent NIB rates will have been"crunched".....if you know what I mean !!
when will the Credit Crunch hit NIB LTV mortgages?
- Thread starter landlord
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I
irishlinks
Guest
Apparently all applications in before May 12th will get the current rates - so you might be OK( I confirmed this with NIB Media Relations just today - but you would need to confirm with your branch to be safe.)
John Rambo
Registered User
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Yes, NIB's LTV mortgage at the present rates is not long for this world. I understand they will be increasing their margin and simultaneously trying to tempt existing customers away from the product. So, with a customer paying 4.5% with the cost of funds for the bank running at 4.8% they are under pressure. Their plan will be to offer customers a switch to a two year discounted rate of say 4.0% or less which will revert back to the standard variable rate. Obviously, customer should decline these advances (barring unique circumstances) And to be fair, this product is well priced because in Denmark banks don't really make much money on mortgages...Danske see the mortgage as a gateway to facilitate the sale of more profitable products. I'm glad I've one and I won't be giving it up!
DrMoriarty
Moderator
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I'm glad I locked in to a three-year fixed rate of 3.45% in 2006... 
...but not looking forward to the shock to my system when it expires.
...but not looking forward to the shock to my system when it expires.
I
irishlinks
Guest
I only posted earlier in response to a post made earlier today - which has since been deleted. (don't know why?)
That post was referring to an article in today's Independent which reported that the NIB rates are going up from Mon 12th May.
The new rates are closely related to your LTV.
Under 50% gets you 4.5% still.
51% LTV = Rate of 4.51%
59% LTV gets you 4.59%
60% LTV = Rate of 4.6% and so on upto 80%
Also - no payment of legal fees by NIB for switchers.
That post was referring to an article in today's Independent which reported that the NIB rates are going up from Mon 12th May.
The new rates are closely related to your LTV.
Under 50% gets you 4.5% still.
51% LTV = Rate of 4.51%
59% LTV gets you 4.59%
60% LTV = Rate of 4.6% and so on upto 80%
Also - no payment of legal fees by NIB for switchers.
Because it was in breach of the posting guidelines.
i posted it and it was deleted as i used a self censored profanity that breached the guidelines. Fair nuff!
Anywho, meeting went well. Application should be signed by Friday which will mean we can still avail of the current offer that includes the free switching service and rate of ECB + .5% (LTV < 50%) for the lifetime of the mortgage. Delighted.
Anywho, meeting went well. Application should be signed by Friday which will mean we can still avail of the current offer that includes the free switching service and rate of ECB + .5% (LTV < 50%) for the lifetime of the mortgage. Delighted.