Myths about Mortgage that you Should be Aware of

 

Many people often consider mortgages as a complex and difficult matter. There are also some myths that people share. These myths leave most people worried about how the mortgage will affect them. After application, some people are mostly stressed by the repayment process. This perception and the reluctance to talk about them indicate that some people could be missing out on the benefits of mortgages. 

When it comes to your finances, knowledge is very important. Therefore, if you are thinking about getting a mortgage in the future, or have one at the moment, never fear to ask questions and always do research. These are three mortgage myths that you need to be aware of. 

A mortgage payment holiday or break will cost you nothing A payment holiday is when the financial institution suspends the payments of your mortgage for a given time. The payment and the interest are then moved to the mortgage’s balance. For most people, this means that at the end of the break, the payments they make on a monthly basis will increase. Therefore, always ensure …

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New Green mortgage offering one of Ireland’s lowest rates

AIB’s mortgage subsidiary Haven has launched a new, four-year, fixed rate green mortgage with one of the lowest rates currently available on the market.

Haven is a wholly-owned subsidiary of AIB which focuses solely on mortgage distribution through brokers. They offer a broad selection of fixed and variable rate mortgages to customers including first time buyers, movers, switchers, and investors.

The mortgage has a rate of 2.15 percent, and applies to both new and existing customers with a Building Energy Rating (BER) of between A1 and B3. The BER cert must also be less than 10 years old in order to be eligible. All new builds are expected to qualify for the low rate, and existing customers who remodel their home to meet the BER requirements will also qualify.

According to AIB, this low rate could result in substantial savings for the average customer. The lender reports that the new rate allows customers of a 25 year, €300,000 mortgage to save €155 monthly. This equates to a savings of €1,800 per year over the lifetime of the loan, when compared …

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Mortgage lenders in Ireland

There are ten mortgage lenders in Ireland. AIB, Bank of Ireland, EBS, Finance Ireland, Haven, ICS/Dilosk, KBC, PTsb, Ulster Bank and Credit Unions.

A mortgage broker can help you make an application to all of them except for the EBS who don’t distribute through brokers and Credit Unions who have to be applied to directly and individually.

The main comparison between lenders is their interest rate, but there are many other features of a loan to consider such as the rates that may apply after a fixed rate expires, cash-back and other terms and features that are specific to loans from certain banks.

For instance, some lenders will let you overpay a fixed rate mortgage, others will penalize you if you do that. To find out more get in touch and we can help you figure out what lender is the best for your circumstances.

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If you need mortgage assistance during the covid 19 pandemic

Below is a list of numbers for the banks where you can speak to representatives who will be able to assist you with any concerns you have about making mortgage payments during the covid19 pandemic.

AIB 1890 252008

Bank of Ireland 01 6113333

EBS 1850 330044

Finance Ireland 1890 995998

Haven Mortgages 1850 654329

ICS Mortgages 1890 542542

KBC Bank 1800 939244

Permanent tsb 0818 502424

Ulster Bank 1800 435763

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Inflation Rates Return to Normal

 

The current housing prices in Dublin have been talked about extensively recently. The newest trend shows that housing prices have reached peak affordability and now some of the wealthy classes of people are having trouble affording homes. Current house prices in Dublin are more than nine times the average salary making them unattainable for the majority of people because mortgages can only be 3.5 times your salary. Additionally, these numbers have not been seen since the Celtic Tiger Era, however, the central bank has been more careful this time and increased borrowing rules unlike during the Celtic Tiger Era. Prices are now beginning to slow down because simply nobody is able to afford them.

Inflation has also cooled off recently with a decrease from 12.4% last May to 2.8% a year later. Dublin has seen a significantly smaller inflation rate with an increase of prices from the current year to May of .6%.

The region of Dublin had the highest median price of 366,000 Euros which is just over 9 times more than its average salary of 40,000 Euros. …

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Talking Money – Switch your mortgage to save

This week on ‘Talking Money’ Karl Deeter and Jill Kerby were discussing ‘switching’ with Cormac on RTE’s Drivetime. It was coincidental that many of the points we made were reinforced by the Central Bank findings this week on mortgage switching on points such as assertive customer behaviour being important and not allowing inertia to hold people back.

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AIB ‘Portable Trackers’ what does it mean?

AIB (who encompass EBS and Haven) have announced that their existing tracker customers can ‘keep their tracker’ if they move. The update from the broker arm of the bank Haven said this was confirmed only for existing Haven customers and that AIB would release their update towards the end of July but the news in the papers says otherwise.

What does this mean?

Firstly it is limited to the customers of the state owned bank, it is also more generous than competitors have offered which gives AIB the unusual accolade of being the bank who (at least it is perceived) write off debt faster, concede to government calls for lower rates and ensure they keep a legacy tracker book for longer than expected.

Why do they do it?

Existing customers have to dispose of one property and buy another, so it’s a way of getting ‘new lending’ buy doing so by giving it to tried and tested customers, a proven track record is a better indication of loan repayment capacity than almost any …

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Don’t be late! Banks announcing cut off dates for mortgage cheques

Every year Santa brings a few unlucky kids some coal, the banks have a similar deal for people who are late with their paperwork and it’s called a ‘cut off date’.

This means that irrespective of what you do, you won’t be able to get a mortgage cheque if you submit paperwork after a certain date (we’ll list them as they come in). The problem for some people is that they might be reliant on closing in 2013 in order to get a legal property tax avoidance for owner occupiers so if you are going to try to draw down in December do yourself a favour and get everything sorted out ASAP.

And also remember, by ‘documents in’ that means ‘on the system’ and from the time a document arrives to when it gets scanned up can take a few days depending on the institution.

Cut off dates announced thus far:

BOI and ICS: Tuesday 17th

KBC: Friday 20th

(edit: 28/11/13 10:51am)

AIB/Haven: Monday 16th

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