Mortgage Terms

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This topic contains 6 replies, has 4 voices, and was last updated by Profile photo of Anonymous Anonymous 6 years, 2 months ago.

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  • #55866
    Profile photo of Anonymous
    Anonymous
    Participant

    Anyone got an opinion on these terms I’m being offerred by the bank on a new 2 bed apartment. They feel OK but not sure how typical they are.

    Loan: 75%
    Interest % : 3.50 during 1 year then the Euribor plus 0.75. Reviewed every 6 months
    Mortgage Duration: 25 years
    Overpayment/early repayment charges: 0.50 % in 1st 5 years – then 0.25 %
    Bank receiving charges (for euros) 0 for up 50,000 then 0.2% above that
    Arrangement fee : 0.50%

    Interested to hear any thoughts

  • #100830
    Profile photo of Anonymous
    Anonymous
    Participant

    Tell them to forget the Arrangment fee and try to negotiate early payment charges. The rest doesn’t sound too bad.

  • #100894
    Profile photo of Anonymous
    Anonymous
    Participant

    Agree, no arrangement fee and no early payment charges. As part of the negotiation you can say that you will not make an earley settement of the full amount of the loan say before seven years. During the seven year period a mimimum of say 10% repayment of the capital borrowed should be allowed.

  • #100898
    Profile photo of Anonymous
    Anonymous
    Participant

    OK thanks for the suggestions folks. Am going to talk to the bank

  • #101066
    Profile photo of Anonymous
    Anonymous
    Participant

    When I got a mortgage with solbank it was euribor plus .75% then in the small print there was a minimum rate of 4%.

    So when I should have been paying 1% I was paying 4%.

  • #101069
    Profile photo of Anonymous
    Anonymous
    Participant

    This is a normal condition that is applied by most banks world wide popularly known as “collar”

  • #101070
    Profile photo of Anonymous
    Anonymous
    Participant

    You would never have been paying 1%. The lowest that a Euribor has been was around 0.65%+/_ add to that the banks margin of 0.75%, it would have been 1.40%. I agree it would not have been 4%.

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