Bank of Ireland

slinky6

Hi all, currently have a repayment mortgage with Bank of Ireland fixed at around 4%. This will run out in March and I'm a bit concerned about the whole Ireland money situation. Am I panicking over nothing, is my mortgage safe, will I be able to re-mortgage ok?

Thanks:(

GMS

You owe them money so don't worry about it. If they had your cash then you may have a right to slight concern.

Do you mean remortgaging with them or elsewhere?

slinky6

Either really, this is actually the second consecutive mortgage i've had with them so was hoping they may be able to offer me another deal good enough to make me stay!!

GMS

What will be available at the time is anybody's guess. Remortgaging should be possible with them as there is no sense in them stopping lending. Remortgaging away from them will be no issue subject to meeting new lender criteria.

slinky6

Hi, thanks for your help.
:j

dimbo61

What does your mortgage revert to at the end of the fix ?
SVR ? which the lender can put up when they want ?

Thrugelmir

GMS wrote: »

Remortgaging should be possible with them as there is no sense in them stopping lending. QUOTE]

As the majority of the bail out loans are being used to recapitalise the banks. One can safely assume that over time the Irish banks will reduce their UK mortgage loan exposure.

GMS

Thrugelmir wrote: »

GMS wrote: »

Remortgaging should be possible with them as there is no sense in them stopping lending. QUOTE]

As the majority of the bail out loans are being used to recapitalise the banks. One can safely assume that over time the Irish banks will reduce their UK mortgage loan exposure.

Stopping lending will mean stopping making profits. This makes no sense to a bank needing to repay debts.

Leon_W

The only problems I can see are these.

They were very keen to lend at 90% LTV, so if house prices slip and you are up around that LTV then you are at the mercy of Bank of Ireland as you will find it impossible to remortgage to another lender as, quite frankly, nobody would want you.

Therefore you would be stuck with BOI. Now, if your rate reverts to Bank of England Base rate + margin it all depends on what that margin is and future base rates, Some of their revert rates were better than others but you are stuck either way. They may (if it is profitable) offer new deals when yours runs out, but I wouldn't bank on getting another fixed rate at a reasonable price.

If your rate reverts to an SVR then I think you would be in more trouble. BOI would heap quite a bit of margin on this as other bailed out banks like Northern Rock prove. It also has to be remembered that Northern Rock do not offer new deals if you are in Bad Bank side so you're stuck with their higher than avareage SVR.

I can't see BOI being much different than Northern Rock as it costs them more to borrow the money to subsequently lend out.

Regards

kmmr

Are you with BoI (UK) - the post office bank, or Bank of Ireland in Ireland?