Are we looking at a Mortgage Rates Price War?


#21

there is no enforceable clawback on the cash back


#22

Is that right? Great!

I remember seeing something about it in the contract and the mortgage manager in the bank explaining that it was to prevent people taking out mortgages, pocketing several grand and then repaying within a few months without paying much/any interest. Obviously that would actually be quite an exceptional and tricky thing to do but this was given as the reasoning behind it.


#23

With apologies for the tangent…
Just looking into this cash-back claw-back thing: Seems BoI has previously said that contracts signed before 2016 are still potentially subject to claw-back.

Would they actually pursue you to test a case that they might lose and would definitely cost all parties more in legal fees than the sum at stake? Probably not - but I’d want that in writing.

Even before hearing of this EU directive it did sound like an anti-competitive practice. If we are all supposed to be free to switch then this is a severe barrier to shopping around. Their new approach - giving you a bonus 1% after five years - seems more defensible as it’s a carrot rather than a stick.


#24

the discount applies, but as you said, you’d never use it as the Loyalty Discounted Variable is lower than the ufirst variable rate, which to me makes no sense


#25

Hi all - am in the process of refinancing BOI with KBC. Have run in a weird issue - BOI is not sending out a redemption amount. First requested in September; no sign despite repeated calls to “Redemptions” by my solicitor and myself.

Mortgage is chunky - I reckon I will save a lot over the remaining 24 years relative to BOI SVR.

Anyone else with the same experience ?


#26

Write them a letter and threaten them with the Financial Services Ombudsman.

This generally puts the skids under the bank as dealing with the Ombudsman is hassle.


#27

Ulster Bank are due to change their rates this week. No announcement yet


#28

Can’t decide whether the tracker scandal is making it more or less likely that banks will drop their rates. On the one hand, they need money to pay compo but on the other, they could do with a PR win. Maybe wait a couple of weeks, soak up the bad news and go for tabloid headlines ‘Christmas windfall as banks slash mortgage payments for all’


#29

NEW UB rates effective from tomorrow are here

Variables (says valid from Nov 7)

ulsterbankintermediaries.ie … -mortgages

Fixed (still says July rates)

ulsterbankintermediaries.ie … -mortgages

BTL (says valid from Nov 7)

ulsterbankintermediaries.ie … -mortgages


#30

Can’t see any (significant) difference to current rates though? Not sure what has changed.


#31

I was thinking the same thing


#32

Ulster are now offering a fixed 7-year rate at 3.3% for low LTVs. BoI a ten-year rate for 3.3%.

This is the first time I’ve seen Irish banks offer genuinely long-term products at a reasonable price.


#33

10 year money at 3.3 % may prove to be the tracker rate mortgage of tommorow, with the wall of inflation coming at us.


#34

Presumably they will be hedged by reference to Euribor so won’t be quite as bad as trackers which were adversely affected by the gap between ECB and Euribor.
Of course, I doubt they will be able to hedge against Irish Banker’s destroying their own credit-worthiness relevant to other EU banks, which is probably the greater risk.


#35

KBC Ireland have 3.05% and 2.95% I think for reasonable and low LTVs respectively. 5 year money. It is probably best in market for the last year or so - others might dip below it until mid-2018, but I think it’s hard not to see Euro rates not rising in 2019 and beyond. Which to me makes 5 or 10 year lock-ins now look good value… but maybe I’m a fool and we’re destined for another 5-10 years of historically low rates!


#36

I’m seeing 4 year fixed at 2.6%. Did that get any headlines?

digital.ulsterbank.ie/personal/m … rates.html

4.3 % exit rate. Bleugh!


#37

still a reasonable margin - though I guess people who lock in for 10 years are less risky than those who look less far ahead (not to mention the cannys who think you’re a mug to do so as the bank knows more than you…)


#38

Am i right in thinking UB launched this in the summer for 3 months(switchers only) only but now seem to be offering as a permanent offering. I would be very tempted to move next summer when i can leave my current fixed term.

Fixing in the next few years could be indeed a canny move.


#39

check the breakage fee on your current fixed might not be that large


#40

It doesn’t look like the cash back offers have proliferated to more than 2 or 3 of the banks.

BOIs current cashback offer expires at the end of this month. I wonder if they’ll extend it or the banks going to start cooling it with these offers because of the issues with actually enforcing the clawback?