Homeowners – How to Save €20,000 in 10 Years

How much time do we spend looking for ways to make interest on our savings, to find those high interest accounts in order to get maybe 200 or 300 euro extra interest a year?
Are you always looking for ways to make the money go further?
Well – the easiest way for Irish homeowners with a mortgage to save money is to switch your mortgage .
There is no catch , no risks , no strings – I am just telling you the simple facts that can save you on average €20K tax free in 10 years.
For example – if you bought your Dublin home as recently as August 2005 – the (average price then was €352000 in Dublin. (PTSB Price Index) Assuming that you got a mortgage for 92% (323840) – that would mean you will have an outstanding mortgage of about €308000 now. (Based on 5% repayment mortgage over 25 years).
The average value of a Dublin house is now around €390000 Euro. (PTSB Feb 2008).
If you are on a standard variable rate with your mortgage lender you could be paying an interest rate as high as 5.63% with Irish Nationwide or 5.45% with IIB or 5.44% with BOI.
Since your house value has risen and you have paid off some of the capital – your “LTV” is now just below 80%. You owe less than 80% of the value of your home.

By just switching to a tracker mortgage with NIB (National Irish Bank) – you could reduce your monthly repayments by as much as €186 a month – or €22000 over 10 years. Yes Twenty Two Thousand Euro in just 10 years. (Compared to Irish Nationwide Variable rate). If you are with Bank of Ireland. PTSB, ICS, IIB – and stuck on their variable rates of 5.44 or 5.45 – you could save about €18000 over 10 years.
These figures are based on a new mortgage over 23 years – so the end date remains the same as your original mortgage.
NIB have rates from 4.59% down to 4.5% – you get a lower rate for a lower LTV.

(UPDATE May 7th  2008- New NIB rates from May 12th 2008 – mean that these savings will not be valid from that date. )
All you need to do is pick up the phone and call NIB . Legal fees are covered if you use NIB solicitors. You will have to pay a valuation fee of around €150 euro.
This site is not affiliated in any way with NIB – we just like to see people save money.

These figures are based on average Dublin prices . You could save even more if your LTV is lower than 80%.
Mortgage Brokers will not be able to assist you with NIB applications – because NIB do not deal with brokers.