Follow, retweet @dailypinster




Post new topic Reply to topic  [ 51 posts ]  Go to page 1, 2, 3, 4  Next
Author Message
 Post subject: Are we looking at a Mortgage Rates Price War?
PostPosted: Fri Sep 15, 2017 9:33 am 
Offline
Too Big to Fail
User avatar

Joined: Aug 20, 2009
Posts: 4912
http://www.irishexaminer.com/breakingne ... 06039.html

AIB are dropping all rates by 0.25%

Press release
https://group.aib.ie/content/dam/aib/gr ... market.pdf

I expect many banks to follow


Top
 Profile  
 
 Post subject: Re: Are we looking at a Mortgage Rates Price War?
PostPosted: Fri Sep 15, 2017 12:25 pm 
Offline
Property Magnate

Joined: Oct 12, 2014
Posts: 596
Location: Dublin
I'm not sure I do expect that.
KBC have been lower for quite a while, and BoI just "tough it out" until they react a little less and their rates are usually considerably higher.

I find it hard to believe that Irish SVRs or Fixed Rates would get much below 3% over next 2 years.
There have been a number of cuts by most banks in last 2 years. I think this potentially might be approaching the end of that cycle?
The EU might start nudging the base rate up in 2018 or 2019?


Top
 Profile  
 
 Post subject: Re: Are we looking at a Mortgage Rates Price War?
PostPosted: Fri Sep 15, 2017 12:52 pm 
Offline
Planning Tribunal Attendee

Joined: Sep 15, 2015
Posts: 1434
The headlines are misleading; if you read the press release, it's actually 0.35% discount for the LTV-based rates that most people presumably actually have. Only reason to be on the old SVR rate (which went down 0.25%) would be if you were in neg equity.

FTBer wrote:
I find it hard to believe that Irish SVRs or Fixed Rates would get much below 3% over next 2 years.


As per the press release, an AIB variable on <50% LTV is now 2.75%. 2.95% for 50-80. Irish mortgage rates are generally far above other European ones, but these (and Ulster Bank's recent cheap fixed rate) do bring us closer.


Top
 Profile  
 
 Post subject: Re: Are we looking at a Mortgage Rates Price War?
PostPosted: Fri Sep 15, 2017 8:21 pm 
Offline
Property Magnate

Joined: May 14, 2007
Posts: 581
Location: On the road to nowhere.
So how rigorously are the valuations checked?
I would put an optimistic 250000 valuation on my house.
124000 mortgage outstanding.
Thats >50%
Whats the catch??


Top
 Profile  
 
 Post subject: Re: Are we looking at a Mortgage Rates Price War?
PostPosted: Fri Sep 15, 2017 10:53 pm 
Offline
Planning Tribunal Attendee

Joined: Sep 15, 2015
Posts: 1434
finnie wrote:
So how rigorously are the valuations checked?
I would put an optimistic 250000 valuation on my house.
124000 mortgage outstanding.
Thats >50%
Whats the catch??


AIB generally are reluctant to let people move between LTV bands. If you did move, you'd obviously need a real valuation.


Top
 Profile  
 
 Post subject: Re: Are we looking at a Mortgage Rates Price War?
PostPosted: Sat Sep 16, 2017 8:42 am 
Offline
Property Magnate

Joined: Oct 12, 2014
Posts: 596
Location: Dublin
Worstpigeon wrote:
finnie wrote:
So how rigorously are the valuations checked?
I would put an optimistic 250000 valuation on my house.
124000 mortgage outstanding.
Thats >50%
Whats the catch??


AIB generally are reluctant to let people move between LTV bands. If you did move, you'd obviously need a real valuation.

Don't most banks (if not all) provide an approved list of valuers in order to stop excessively optimistic valuations for LTV purposes?


Top
 Profile  
 
 Post subject: Re: Are we looking at a Mortgage Rates Price War?
PostPosted: Sat Sep 16, 2017 9:30 am 
Offline
Under CAB Investigation

Joined: Feb 24, 2008
Posts: 1607
My valuation four years ago for ulster bank consisted of the estate agent asking how much I was buying the house for. He wrote this on his sheet and went off on his way. Easy money for him.


Top
 Profile  
 
 Post subject: Re: Are we looking at a Mortgage Rates Price War?
PostPosted: Tue Sep 19, 2017 2:06 pm 
Offline
Single Home Owner

Joined: Mar 3, 2009
Posts: 190
I switched to AIB last year (good move as it turns out) - I had to get a valuation from an approved agent who came and did a walk around the house.

given that the ECB rate is effectively 0, as banks funding positions improve and they get bad debts off their books (which is happening slowly) you would expect their costs of borrowing to drop which should allow them to drop mortgage rates while maintaining margins. So it doesn't necessarily mean an ECB rise would automatically be followed by the banks if the market remains competitive.


Top
 Profile  
 
 Post subject: Re: Are we looking at a Mortgage Rates Price War?
PostPosted: Wed Sep 20, 2017 4:54 am 
Offline
Under CAB Investigation

Joined: May 12, 2012
Posts: 1882
The valuation is done by an EA approved by the bank but paid for by you.

When we switched ltv bands the guy undervalued it I think deliberately by about 5%.

They rely on repeat business from the bank and therefore err on the cautious side.


Top
 Profile  
 
 Post subject: Re: Are we looking at a Mortgage Rates Price War?
PostPosted: Wed Sep 20, 2017 8:13 am 
Offline
Under CAB Investigation

Joined: Feb 24, 2008
Posts: 1607
To be fair, our house was underpriced. So maybe he was just being conservative. It wasn't really his business/concern if the property was undervalued I suppose.


Top
 Profile  
 
 Post subject: Re: Are we looking at a Mortgage Rates Price War?
PostPosted: Wed Sep 20, 2017 10:05 am 
Offline
Old Time Landlord

Joined: Jun 23, 2011
Posts: 381
KBC have announced a 10 Year fixed for LTV <60% at 2.95% and for a 60%< LTV <80% at 2.99%, both rates including a 0.2% discount for using a KBC Current Account, by way of comparison AIB launched a 7 year fixed at 3.5% as part of their recent announcement and BOI's existing 10 year fixed rate is 4.2%

Are we slowly moving towards a more European style mortgage market or just a reaction to increasing levels of mortgage switching, hoping to tie customers in with penalty clauses for breaking fixed rate arrangements?

http://www.independent.ie/business/pers ... 50149.html


Top
 Profile  
 
 Post subject: Re: Are we looking at a Mortgage Rates Price War?
PostPosted: Wed Sep 20, 2017 10:38 am 
Offline
Old Time Landlord

Joined: Mar 30, 2016
Posts: 350
BuMble wrote:
KBC have announced a 10 Year fixed for LTV <60% at 2.95% and for a 60%< LTV <80% at 2.99%, both rates including a 0.2% discount for using a KBC Current Account, by way of comparison AIB launched a 7 year fixed at 3.5% as part of their recent announcement and BOI's existing 10 year fixed rate is 4.2%

Are we slowly moving towards a more European style mortgage market or just a reaction to increasing levels of mortgage switching, hoping to tie customers in with penalty clauses for breaking fixed rate arrangements?

http://www.independent.ie/business/pers ... 50149.html


at the moment the costs for breaking out of fixed rate mortgages are negligible,

by that i mean if you fixed recently.

a friend of mine broke out of a UB fixed rate of 3% to fix at 2.6% with no penalty


Top
 Profile  
 
 Post subject: Re: Are we looking at a Mortgage Rates Price War?
PostPosted: Wed Sep 20, 2017 11:13 am 
Offline
Too Big to Fail
User avatar

Joined: Aug 20, 2009
Posts: 4912
A lot more switching going on with the cash back deals so makes sense to lock them into fixed rates

2.95% 10 year fixed <60% LTV is good, but you need to have current a/c with them, or else you pay 3.15%

I've a legacy Ulster Bank Ufirst current a/c for 10euro a month - more than the €4 monthly fee for regular current a/c but I get extra perks like 25% off anything booked with ticketmaster, free phone and travel insurance, discount on mortgage rates, free €500 overdraft. so don't plan on closing that anytime soon.

Hopefully UB will go with something similar


Top
 Profile  
 
 Post subject: Re: Are we looking at a Mortgage Rates Price War?
PostPosted: Wed Sep 20, 2017 11:15 am 
Offline
Old Time Landlord

Joined: Jun 23, 2011
Posts: 381
cyrusir wrote:
BuMble wrote:
KBC have announced a 10 Year fixed for LTV <60% at 2.95% and for a 60%< LTV <80% at 2.99%, both rates including a 0.2% discount for using a KBC Current Account, by way of comparison AIB launched a 7 year fixed at 3.5% as part of their recent announcement and BOI's existing 10 year fixed rate is 4.2%

Are we slowly moving towards a more European style mortgage market or just a reaction to increasing levels of mortgage switching, hoping to tie customers in with penalty clauses for breaking fixed rate arrangements?

http://www.independent.ie/business/pers ... 50149.html


at the moment the costs for breaking out of fixed rate mortgages are negligible,

by that i mean if you fixed recently.

a friend of mine broke out of a UB fixed rate of 3% to fix at 2.6% with no penalty


We're currently 50%<LTV<80% with AIB which is going to 2.95% on the basis of the latest change but 10 year fixed at the same rate would tempt me to switch.


Top
 Profile  
 
 Post subject: Re: Are we looking at a Mortgage Rates Price War?
PostPosted: Wed Sep 20, 2017 11:51 am 
Offline
Of Systemic Importance

Joined: Nov 4, 2011
Posts: 5502
Location: SthDub
cyrusir wrote:
BuMble wrote:
KBC have announced a 10 Year fixed for LTV <60% at 2.95% and for a 60%< LTV <80% at 2.99%, both rates including a 0.2% discount for using a KBC Current Account, by way of comparison AIB launched a 7 year fixed at 3.5% as part of their recent announcement and BOI's existing 10 year fixed rate is 4.2%

Are we slowly moving towards a more European style mortgage market or just a reaction to increasing levels of mortgage switching, hoping to tie customers in with penalty clauses for breaking fixed rate arrangements?

http://www.independent.ie/business/pers ... 50149.html


at the moment the costs for breaking out of fixed rate mortgages are negligible,

by that i mean if you fixed recently.

a friend of mine broke out of a UB fixed rate of 3% to fix at 2.6% with no penalty

Was the new rate with UB also?


Top
 Profile  
 
Display posts from previous:  Sort by  
Post new topic Reply to topic  [ 51 posts ]  Go to page 1, 2, 3, 4  Next


Who is online

Users browsing this forum: maryocarol and 19 guests


You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum

Jump to:  

Follow, Retweet @dailypinster



Pyramid Built, Is Better Built! - Latest Property Discussions www.thepropertypin.com