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02 Jul 2022

Making Cents: Getting to grips with mortgage rates

Making Cents: Getting to grips with mortgage rates

IF YOU are thinking of buying for the first or second time or indeed just considering moving lenders, it’s obviously important to know, who has the most competitive interest rates.
And there are many different rates on offer, all of which fall into two different categories i.e. fixed and variable.
But within each there are a number of different rates. For example, you have dedicated rates based on what the loan to value ratio is, rates based on how energy efficient your home is, and then you have a suite of fixed rates ranging from one year all the way to thirty.
So, the purpose of this article is to provide you with information, showing you what rates are on offer from the various lenders at the moment and standing them alongside each other where you can compare them against one another.
This article isn’t about the pros and cons of variable or fixed rates or having a combination of both.
The suitability of each and the determination about which is most appropriate for you is another article altogether, although I have written about this many times before.
In this article, I want to focus and concentrate exclusively on interest rates and what each provider is currently offering.
And I’m going to tell you what they are, and alongside each rate, I’m going to include a cost per thousand (CPT) as well because it can monetise the difference in interest rates.
Some people might wonder of think that a .25% or a .50% difference is a huge number or indeed some might think it’s very small, but we can take the guesswork out by including the CPT where you can see exactly what .25% or whatever the differential is, in monetary terms.
For example, if you were borrowing 90% of the purchased price and that happens to be €300,000, and you’re looking at lenders over a 25-year term, you can easily work out that based on a variable rate, it would cost you €1,569 with PTSB and €1,377 with ICS.
If you’re comparing fixed rate offerings, and borrowing the same amount, but the loan to value is 80%, you can see that a 5-year fixed with BOI will translate into a mortgage repayment of €1,422 and with EBS it will be €1,383.
Or perhaps, you’ve decided that your lender is going to be AIB and you’re rate is going to be a fixed one, now you can compare their 1 year offering versus their 5 year one.
So, knowing the rate and subsequent cost may inform your decision based on (a) what lender you’ll use and (b) whether you choose a variable rate over a fixed one or vice versa and/or (c) if you choose to fix your entire mortgage, it might help determine the fixed rate period.
Okay, so here goes. The rates below apply to owner occupiers only and the cost per thousand is based on a 25-year term. And I could have had many tables but chose to limit the fixed rates to 3, 5, 10, 20 and 30.

Variable – Loan to Value >90%
Lender    Rate Cost    Per Thousand
ICS             2.70%            €4.59
AIB             3.15%             €4.82
Haven       3.15%             €4.82
EBS             3.70%            €5.11
PTSB         3.90%            €5.22
BOI             4.50%           €5.56

Variable – Loan to Value 80%
Lender       Rate Cost       Per Thousand
ICS               2.70%               €4.59
Haven         2.95%               €4.72
AIB               3.15%               €4.82
EBS              3.50%               €5.01
PTSB            3.85%             €5.20
BOI               4.20%              €5.39

Variable – Loan to Value 70%
Lender         Rate Cost        Per Thousand
ICS                   2.45%                €4.46
AIB                   2.95%               €4.72
Haven             2.95%               €4.72
EBS                  3.50%               €5.01
PTSB               3.80%               €5.17
BOI                  4.20%               €5.39

Variable – Loan to Value 50%
Lender         Rate Cost          Per Thousand
ICS                  2.45%                  €4.46
AIB                  2.75%                  €4.61
Haven              2.75%                  €4.61
EBS                  3.30%                  €4.90
PTSB               3.60%                  €5.06
BOI                  3.90%                   €5.56

Fixed – 3 Years (loan to value 80%)
Lender         Rate Cost             Per Thousand
ICS                  2.20%                     €4.34
AIB                  2.45%                     €4.46
Haven              2.55%                     €4.51
EBS                  2.75%                     €4.61
PTSB*              2.50%                    €4.49
BOI**              3.00%                    €4.74
*This rate applies to loans >€250,000. If loser, the rate is 2.95%
**BOI offer a 2.70% fixed “green” rate if property has a BER energy rating of B3 or better

Fixed – 3 Years (loan to value 50%)
Lender            Rate Cost             Per Thousand
ICS                     1.95%                    €4.21
AIB                     2.35%                   €4.41
Haven               2.55%                   €4.51
EBS                    2.75%                   €4.61
PTSB*              2.50%                  €4.49
BOI**               3.00%                  €4.74
*This rate applies to loans >€250,000. If loser, the rate is 2.95%
**BOI offer a 2.70% fixed “green” rate if property has a BER energy rating of B3 or better

Fixed – 5 Years (loan to value 80%)
Lender            Rate Cost                Per Thousand
ICS                     2.20%                     €4.34
AIB*                  2.45%                     €4.46
Haven               2.55%                     €4.51
EBS                   2.75%                     €4.61
PTSB**             3.00%                     €4.74
BOI***              3.00%                    €4.74
*AIB offer a 2.15% fixed “green” rate if property has a BER energy rating of B3 or better
**PTSB offer a 2.55% rate if loan is >€250,000
***BOI offer a 2.70% fixed “green” rate if property has a BER energy rating of B3 or better

Fixed – 5 Years (loan to value 50%)
Lender            Rate Cost                   Per Thousand
ICS                     1.95%                           €4.21
AIB*                   2.35%                           €4.41
Haven                2.55%                           €4.51
EBS                    2.75%                           €4.61
PTSB**               3.00%                           €4.74
BOI***               3.00%                           €4.74
*AIB offer a 2.10% fixed “green” rate if property has a BER energy rating of B3 or better
**PTSB offer a 2.55% rate if loan is >€250,000
***BOI offer a 2.70% fixed “green” rate if property has a BER energy rating of B3 or better

Fixed – 10 Years (loan to value 80%)
Lender                  Rate          Cost Per Thousand
Avant                      2.30%                        €4.39
Finance Ireland        2.65%                        €4.56
Haven                     2.85%                        €4.66
AIB                         3.20%                        €4.85
BOI*                       3.30%                        €4.90
*BOI offer a 3.00% fixed “green” rate if property has a BER energy rating of B3 or better

Fixed – 10 Years (loan to value 50%)
Lender                  Rate             Cost Per Thousand
Avant                     2.10%                        €4.29
Finance Ireland       2.40%                     €4.44
Haven                    2.85%                      €4.66
AIB                        3.10%                       €4.79
BOI                        3.30%                      €4.90
*BOI offer a 3.00% fixed “green” rate if property has a BER energy rating of B3 or better

Fixed – 20 Years (loan to value 80%)
Lender                  Rate              Cost Per Thousand
Avant                     2.60%                        €4.54
Finance Ireland       2.75%                       €4.61

Fixed – 10 Years (loan to value 50%)
Lender                  Rate              Cost Per Thousand
Avant                     2.45%                        €4.46
Finance Ireland       2.50%                      €4.49

Fixed – 30 Years (loan to value 80%)
Lender                  Rate              Cost Per Thousand
Avant                     3.10%                          €4.79

Fixed – 30 Years (loan to value 50%)
Lender                  Rate              Cost Per Thousand
Avant                     2.85%                          €4.66


Liam Croke is MD of Harmonics Financial Ltd, based in Plassey. He can be contacted at liam@harmonics.ie or www.harmonics.ie

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