TIMES THEY ARE A CHANGING!
DOES YOUR MORTGAGE RATE!
A SWITCH IN TIME SAVES €€€€€€€€€€€€
Over the past 12 months the subject of the margins charged by Irish Bank’s on their standard variable rate mortgages has rarely been off the front pages. Irish rates remain one of the highest in Europe with the average standard variable rate in Ireland at 3.6%. Now thanks to pressure from Government and the European Central Bank we are now beginning to see some real competition in the mortgage market and particularly within the switcher market. Yet the statistics continue to show that Irish homeowners remain reluctant to switch. So is it worth your while taking sometime out to review what your mortgage is actually costing you? The answer to that question is a very definite YES.
Given the present Central Bank of Ireland conditions which apply to the first time buyer market and in particular the amount of the initial deposit required many of the Bank’s operating in the market have seen a considerable slowdown in this area of their business. In order to increase their mortgage market share a number of them have now put additional emphasis on the switcher market and as a result there are now some very attractive deals on offer. Irish consumers appear to be quite reluctant to switch providers and the main reason for this is the cost and perceived amount of time involved in the switching process. Well the good news is that at Opes Wealth Trust once you complete the loan application and supply the supporting documents we will take it from there. No need to take time off work to attend appointments etc, we will do all the Heavy Lifting for you. Opes Wealth Trust have agencies with all the main providers in the Irish mortgage market and as a result we can guarantee you the most competitive deals within the market.
John and Patricia are a married couple with two children. Their fixed rate mortgage recently expired and their existing provider offered them a variable rate of 3.9% with repayments of €1,305.83 over a remaining term of 25 years. John and Patricia requested Opes Wealth Trust to review their Situation and within a short period of time we successfully negotiated a variable rate of 3.2% with another provider. This resulted in immediate monthly savings of €94.13, annualised savings of over €1,100 and over the term of the mortgage John and Patricia could save over €28,000 if the mortgage ran its due course. The projected overall savings would be more than sufficient to pay for their children’s third level education fees.
There are costs involved in switching providers mainly the legal costs and the property valuation (€127) However, in order to entice switchers all the banks are offering incentives to switch to them. For example both PTSB & Bank of Ireland are offering a 2% cash-back on the value of the mortgage; however you should note that penalties will arise if the mortgage is subsequently refinanced within a 5 year period. KBC bank currently offers €2,000 towards legal expenses (this offer expires on the 30th Sept 2016) and 50% off your home insurance for the first year. Ulster Bank offer €1,500 towards your legal fees up until the 30th of June 2016 as do Haven mortgages.
Best mortgage rates based on LTVs.
|KBC Bank Ireland||Discounted Variable||3.10%* LTV 50% OR LESS.|
|KBC Bank Ireland||2 Year Fixed||2.99%*LTV 60% OR LESS|
|KBC Bank Ireland||3 Year Fixed||3.10% LTV 60% OR LESS|
|Ulster Bank||5 Year Fixed||3.35% LTV 60% OR LESS|
Please note that the rates quoted for KBC Bank Ireland are conditional on one party to the mortgage transferring their current account to KBC Bank. The discount of 0.20% is for the duration of the mortgage. Should you switch your mortgage and extend the term or borrow additional funds then a new mortgage protection policy will be required which we will be happy to arrange for you.
So why not pick up the phone arrange a meeting and let us start to save you money.
Our dedicated team of advisers who have considerable experience in this area will manage your application in a professional manner from start to finish and keep you fully appraised during the switching process.
|IF YOU ARE IN AN EXISTING FIXED RATE AGREEMENT THEN YOU IN ALL PROBABILITY YOU WILL HAVE TO PAY A BREAK FEE TO EXIT THE AGREEMENT.THIS AMOUNT CAN VARY AND WILL DEPEND ON THE SIZE OF THE MORTGAGE AND THE TERM REMAINING ON THE FIXED RATE AGREEMENT.YOU SHOULD CONSULT YOUR LENDER TO CONFIRM THE AMOUNT OF THE BREAK FEE AS IT COULD BE SIGNIFICANT. ALSO THE RATES ON OFFER ARE DEPENDANT ON THE LOAN TO VALUE (LTV).THE LOWER THE LTV THE BETTER RATE YOU WILL BE ABLE TO SECURE.|