Q&A:Unfortunately I am one of those people with a variable mortgage with Permanent TSB. Last week the rate was increased to 5.19 per cent so obviously I now want to move the mortgage. All the ads are for first time buyers. Is it still possible for existing mortgage holders to switch?
AApart from the usual criteria (earnings, ability to pay back, etc) a key issue will be your LTV (loan to value – how much you owe in relation to the value of the house). According to Frank Conway at the Irish Mortgage Corporation switchers will need at least 10 per cent of equity in their homes and he gives the example of KBC Bank, lending up to 90 per per cent; Irish Nationwide, lending up to 90 per cent and Haven (part of EBS), lending up to 80 per cent. That being said though, it is almost certain that all other lenders will soon follow Permanent TSB in raising variable rates – Ulster Bank has already increased its rate by .5 per cent – so unless you are looking to switch for a fixed rate – there might not be a great deal to be gained from switching to another lender's variable loan. Weigh your costs and the benefits.
Should I put an offer directly to seller?
Q A house I might be interested in has had a “sale agreed” sign since September 2010. I phoned the agent who just said it was sale agreed, conversation over. But clearly there is a problem with the sale (probably the buyer can’t get the money, I am a cash buyer). As I can’t get any information out of the agent, should I try to talk to the seller directly (note in the door, etc) and put my offer to them? I am not trying to gazump anyone but if there is a problem with the sale surely the buyer would want to know that there is another buyer out there?
AA number of issues arise here. Firstly there is nothing to stop you getting in touch with the seller and putting in your own bid. The seller, however, might not be interested in talking to you, having opted to retain the services of an agent. But how do you know how much to offer? Presumably you know the original asking price, but at what price did it go "sale agreed" – definitely less than the asking but by how much?
Estate agents and sellers are now less inclined to put sale agreed signs on houses because so many such sales have fallen through in the past two years. The preference now is to go straight from For Sale to Sold once the contract is signed. You should not presume the delay is down to money. There could be a problem with the title, planning issues (eg an unauthorised extension), probate issues – all manner of things can slow down a sale. Your best bet is to go back to the agent and express your interest, explaining your strong position in regards funding but without mentioning how much you are willing to pay – that would be showing your hand too early. Give a time limit for his/her response and wait for a reply.
Your questions
Send your queries to Property questions, The Irish Times, The Irish Times Building, 24-28 Tara Street, Dublin 2 or e-mail propertyquestions@irishtimes.com. This column is a readers’ service and is not intended to replace professional advice.
