Bank of Ireland Mortgage - 2 Year Fixed Period Up - HELP!!

jockosjungle

Hi All

Took out a deal with the Post Office on a 10% fixed Mortgage for 2 years, its about to come to an end in July. Now I fully expected to start getting a phone call wanting me to fix again or something, but nothing. I'm now a Bank of Ireland customer, I think really I always was.

I thought about fixing my mortgage again, so thought I'd go to their website, see what rates they had on offer. I got this

http://www.bankofirelandmortgages.co.uk/

No rates, just a suggestion that I !!!!!! off to another mortgage provider.

I assume they're in some form of trouble and want to reduce their mortgage portfolio. I have no problem with this.

I was wondering if they'd maybe pay me off to go elsewhere?

My mortgage is only for £54000, its not even twice my salary and I have paid it on time, etc. My main problem is that if I keep adding an arrangement fee onto the mortgage I'll never pay it off.

When the mortgage is so small, sticking on some fees, etc. requires a really improved rate. I'm about to go onto a 3% above base rate tracker from 5.69% and can afford to take the risk.

I've never had a mortgage before and am unsure what I should do, if anything.

The house was bought for £62k at the bottom of the market, due to the old lady decor. We've done it up, new bathroom and kitchen, etc.

I'd suggest we could get a valuer to knock the value up a few £k and I've also got savings which could be used to improve the LTV.

I've heard rumours that they might pay you to leave?

Any thoughts?

R

ACG

Its unlikely they would have probably already offered you te incentive by now.

There are products available with no arrangement/booking fees etc. The rates are usually a little higher but sometimes it can be better to pay a higher rate.

marathonic

Bank of Ireland have published their latest, higher, rates on their website today:

http://www.bankofireland.co.uk/fs/img/files/BINI%20Range%20combined%20without%20SVR%20product_BINI%20Range%2028Jun12.pdf

jockosjungle

Thanks for that, I guess they won't be trying that hard to keep me. I'll ring them and see what they say though

kingstreet

That BoI product guide deals with Northern Ireland cases only and does not show products for existing customers not moving home. You have to phone them for that information.

Thrugelmir

jockosjungle wrote: »

I'd suggest we could get a valuer to knock the value up a few £k and I've also got savings which could be used to improve the LTV.

The valuer will work on behalf of the new lender not you. So will value accordingly.

If you are earning a lower rate of interest on your savings, than paying on your mortgage. Then overpaying the mortgage makes sense in any event.

All Irish banks are going through a deleveraging process following the bail out by the EU. This was a precondition of Eire receiving the funds. So the banks aren't in trouble as such. Their just not interested in owning assets consisting of UK mortgages.

scrimpingandscraping

Thrugelmir wrote: »

The valuer will work on behalf of the new lender not you. So will value accordingly.

If you are earning a lower rate of interest on your savings, than paying on your mortgage. Then overpaying the mortgage makes sense in any event.

All Irish banks are going through a deleveraging process following the bail out by the EU. This was a precondition of Eire receiving the funds. So the banks aren't in trouble as such. Their just not interested in owning assets consisting of UK mortgages.

is this why they have raised their SVR so that my paymentshave increased from £254 to £375 a month (interest only):eek: they are stuck with me as I got made redundant because of all these greedy bankers! They can deleverage all they want, any more of it and they will be getting £50 a month.

Thrugelmir

scrimpingandscraping wrote: »

is this why they have raised their SVR so that my paymentshave increased from £254 to £375 a month (interest only)

Then pay down the capital balance. As you are in effect renting.

Being on interest only you'll find your options limited if remortgaging.

bigadaj

scrimpingandscraping wrote: »

is this why they have raised their SVR so that my paymentshave increased from £254 to £375 a month (interest only):eek: they are stuck with me as I got made redundant because of all these greedy bankers! They can deleverage all they want, any more of it and they will be getting £50 a month.

Ithinkyoull find they'll have their money back out of selling 'your' house.

noddynoo

Interest only suits the bank in this situation. They will not have to make do with £50 a month for long when they sell from under you!