Good news for Mortgage holders / seekers as the latest ECB rate decrease is beginning to be passed on. A variable rate of just 2.75% is now available mortgages with a loan to value less than 50% loan to value. European Central Bank president has said policy makers haven’t decide whether to stop cutting interest rates below the current 1.5% record low.

With the low rates and developers jumping through hoops for buyers, offering cars, a year of your mortgage paid and more, First Time Buyers are beginning to show interest once again.

KBC Homeloans announced today they will pay customer legal fees up to €1,000, subject to the following:

- It is for First Time Buyers and Home Mover mortgages only
- Minimum loan amount is €200,000
- Normal lending criteria applies
- Discounted standard variable rate only
- Available for all closed business by 30th June, 2009 �
- The €1,000 will be clawed back if the mortgage is redeemed within five years

KBC Homeloans have also reduced their fixed rate mortgage rates. They now offer:

- 2 year fixed rate 3.29%
- 3 year fixed rate 3.69%

Mortgage Lending in KBC is still restricted to 80% loan to value. Raising 20% towards the purchase of your first home is a “big ask” for any first time buyer. (E.g. €300,000 purchase price requires €60,000 deposit from applicant).

Along with that, when considering these types of incentives, it is important to assess the different interest rates available to you. The €1,000 sounds great! But, if you are on a higher rate than what’s available through other lenders, you could pay thousands more in interest throughout the term of your term of your Mortgage. This product is not available for remortgages.

Permanent TSB announced they will be restricting their mortgage lending even further. The following restrictions are effective immediately:

1. Mortgage Applications which are outside nets on the loan amount requested will be declined. Previously if a mortgage application was a little outside policy, Permanent TSB was open to negotiation if the application was strong e.g. good savings, in strong employment etc.

2. Remortgage applicants will no longer be able to refinance short term debt if applying to Permanent TSB. Any short term debt will be considered as an outgoing hence reducing the amount you can borrow. Along with that the maximum loan to value for Remortgage applications will be restricted to 75% loan to value.

With Mortgage lenders polices changing all the time it is important to speak to an Independent Mortgage Broker when applying for your Mortgage. Our experienced advisors give jargon free advice comparing all the options available to you, through 16 lenders. Choosing the right Mortgage could save you thousands over the term!

Seniors Money offers the opportunity for applicant(s) aged 60 and over to release equity in their home. The loan is secured against their home but no payments are made until the house is sold or the applicant(s) pass away. Unlike other Co.’s offering a life time, when you choose seniors money you retain full ownership of your home and you can use the money for whatever you wish.

Seniors Money solves that by offering to lend 15% of the value of your home at age 60 or a maximum of 90% at the age to a maximum 45% at the age of 90. The interest rate is currently 5.65% p.a. There is a set up fee of €1,500 applied to all loans by seniors money which covers the valuation, independent legal advice etc.

The reality is people aged 60 plus who want to release equity in their homes are very restricted when applying for a mortgage due to a maximum age limits set by lenders, which is usually 70 for a PAYE worker and 75 for a self employed person. Many people live Mortgage free with a government pension as their sole income, in cases like this, in our opinion Seniors Money is a good option. It is an alternative pension option for those who didnt invest in a pension whilst younger. We advised the money released be used as a regular income to make the golden years just that.

Good news for Mortgage holders as the European Central Bank Rate (ECB) was slashed by another 0.5% on Thursday bringing the base rate to a record low of just 1.5%. With this reduction, a variable rate of just 2.75% will be available in the coming weeks.

Permanent TSB, KBC Homeloans, EBS, Irish Nationwide and Halifax and Bank of Scotland (Ireland) said the full half a percentage rate reduction would be passed on to customers with variable and tracker rate mortgages.
Bank of Ireland and ICS Building Society also confirmed this afternoon that they will pass on the full ECB rate decrease across their tracker and standard variable rate mortgage products, for new and existing owner-occupier customers.

National Irish bank confirmed it won’t be passing on the rate cut to its variable rate holders and both Ulster Bank and First Active confirmed they will pass on just 0.25%. For Mortgage holder with these lenders we advise switching to a more competitive lender. A quarter percent difference over the term of your mortgage could result in thousands of additional interest being paid.