This article is from page 50 of the 2008-03-11 edition of The Clare People. OCR mistakes are to be expected so download the original SWF or the rendered page 50 JPG
IIB Homeloans has launched a new saver mortgage which allows pay- ments to suit flexible lifestyles.
Offering home-buyers two distinct benefits, the new IIB Homeloans saver mortgage is specially designed for existing and new home-buyers who wish to increase or decrease payments in line with their lifestyle Oath Xene
“This new offering means that a first time buyer looking to trade up, looking to switch his/her mortgage, or a residential property investor, can now tailor repayments to suit their personal fluctuating circumstances. They can channel savings into mort- gage repayments with the resultant savings that gives, or they can choose to withdraw such overpayments Should their circumstances dictate,’ said Pat Naughton, Manager of IIB Homeloans in the mid-west.
The new product offers mortgage holders two key benefits.
Firstly, home-owners/buyers can use their savings to pay off the mort- gage earlier.
The saver mortgage is a normal capital and interest repayment mort- gage, which allows the customer to make any additional repayments against the capital of the mortgage. With mortgage interest calculated daily, these additional payments re- duce the amount of interest that a customer will pay, over the lifetime of the mortgage.
By regularly overpaying against their mortgage a customer can cut years off the term of their mortgage and save thousands of euro in interest payments.
By way of illustration, a customer with a €240,000 mortgage over 30 years at 5.3 per cent APR can – by increasing his or her normal regular repayments by €250 a month – re-
pay the mortgage in only 21 years and save over €80,O000 in interest payments.
Secondly, customers can withdraw any overpayments. A special feature of IIB Homeloans saver mortgage is that the customer can also withdraw any overpayments that he/she makes. For example, if a customer chooses to overpay €250 a month, after five years the customer can withdraw the full amount of overpayments, ie €15,000. (€250 times 60 months).
However, in addition, to having ac- cess to their savings, by overpaying against their mortgage — even for a short period of time — the customer will also reduce the amount of inter- est that they pay on their mortgage.
By way of illustration, based on a typical €240,000 mortgage over 30 years at an APR 5.38 per cent, after five years of making regular €250 monthly overpayments, the customer will have saved up to €2,110.42 in
mortgage interest repayments.
IIB Homeloans Head of Marketing, John McAlinden says, “IIB Homel- oans has built up a reputation for product innovation, and the saver mortgage is a direct response to cus- tomer demand for excellent value financial products. It is particularly suited for home-buyers and home owners who also want to maximise the value of their savings.”
Whether you are a first time buyer, looking to trade up, looking to switch mortgage or an residential property investor, the saver mortgage can help mortgage holders save money over the term of their mortgage. Other features of the new product that cus- tomers will find attractive are;
‘ Customer is not required to open multiple accounts or to switch current accounts.
‘ Customer can make one withdrawal per month — minimum amount €500.
– Customer can make any amount of overpayments.
The application process is quick and easy as customers need only to complete a standard mortgage ap- plication. There is no need to open other accounts eg a savings account or current account and customers do not need to transfer current accounts to avail of the product.
IIB Homeloans offers customers flexibility through:
– Customers wanting to choose a fixed rate product can still overpay up to 10 per cent of the mortgage amount within the fixed term.
– Customers uncertain whether to
go fixed or variable can choose both with IIB Homeloans’ mix and match rate facility and still take advantage of the saver options.
‘ IIB Homeloans offers the best two and three year fixed rate (for LTV <80 per cent) and five year fixed rate in the market.