Mortgage Terms

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    • #55866
      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
      Anonymous
      Participant

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

    • #100894
      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
      Anonymous
      Participant

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

    • #101066
      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
      Anonymous
      Participant

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

    • #101070
      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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