Your EBS Mortgage Coordinator can tell you exactly what our current interest rates are and how they translate into monthly repayments. Here is a brief description of the types of interest rates available:
(i) Variable interest rate
• A variable interest rate can go up and/or down resulting in your monthly repayments rising and/or falling over the life of your mortgage loan.
• A variable interest rate gives you more flexibility. You can make extra mortgage repayments or clear your mortgage earlier than agreed without having to pay any penalties.
• You may have the option of switching to a fixed interest rate (if offered by us at that time).
• Our Loan to Value (LTV) variable rate is available to owner occupier mortgage loans. We have a range of LTV variable rates depending on the amount you are borrowing relative to the value of your home.
• As your loan to value may decrease over the term of your mortgage, you may be able to move between LTV rate bands. There is more information on this option here.
• LTV rates are not available to owner occupier customers at the drawdown of a new top up loan.
(ii) Fixed interest rate
• While on a fixed interest rate, the interest rate and mortgage repayment remains the same for the agreed fixed interest rate period (typically 1 to 5 years). During this time the interest rate will not change. This gives you budget certainty.
• An early breakage charge is payable in the following cases where the fixed interest rate period has not expired:
(a) if a capital payment or full repayment is made to the Loan, or
(b) if the Loan is converted to a variable interest rate, or
(c) if the Loan is converted to another fixed interest rate.
• The formula to calculate the early breakage charge is: amount (A) x remaining term in days divided by 365 (U) x difference in cost of funds (D%).
Definition of terms used in this formula:
(A) amount - The amount being repaid early or the amount being converted to a variable rate or another fixed rate period.
original cost of funds - The cost of funds for EBS d.a.c. for the fixed rate period at the time the fixed rate period commenced.
cost of funds for the fixed rate period remaining - The cost of funds used will be as of 5pm the day previous to the request to calculate the early breakage charge.
(U) remaining term in days - Remaining number of days left before the fixed rate is due to expire.
(D) difference in cost of funds - The difference between the original cost of funds and the cost of funds for the fixed rate period remaining.
Assume a 5 year fixed rate loan. Full repayment €100,000 after 3 years (A); remaining term 2 (U); difference in cost of funds 2% (D).
The early breakage charge would be as follows: (A) 100,000 * (U) 2 * (D) 2% = €4,000.
• At the end of a fixed interest rate period, the interest rate on your loan will default to the standard variable interest rate then offered by EBS at that time unless you choose an alternative interest rate, if on offer by EBS to you at that time. Our standard variable interest rate is a variable interest rate. If the interest rate on your loan defaults or otherwise converts to a variable interest rate then offered by EBS, your interest rate and the amount of your instalments could increase or decrease during the term of your loan and your interest rate could be higher than the fixed interest rate that applied during any fixed interest rate period.
(iii) Split interest rate
You may choose to have a portion of your mortgage loan on a fixed interest rate and the other portion on a variable interest rate. This will enable you to benefit from the advantages of each interest rate in whatever proportions you choose.
Please note that due to the changeability of variable rates, it is not possible to determine at loan offer stage whether a fixed or variable rate will have the lowest repayment amount over the course of the loan.
(iv) You or your legal representative can ask us to give you an idea of how your mortgage interest rate compares to any other rate we may offer at that time.