Mortgage Fees and Costs
The Bank requires that you arrange a valuation of the property (or properties) offered as security, carried out by a valuer acceptable to the Bank. You will need to pay the valuation fee direct to the valuer. You need to agree that fee with the valuer (you should expect to pay a fee of €150 to €250 plus VAT but this can vary). If a loan agreement with you is withdrawn, this fee may be refunded. No responsibility is implied or accepted or warranty given by the Bank for the value or condition of the property as outlined in the valuation. The valuation report will remain the property of the Bank and you are entitled to your own copy of the report.
You will need to pay legal fees to your own solicitor, which you need to agree with him or her as part of your own arrangement. This does not include costs associated with the Bank’s legal investigation of title for the purpose of the Mortgage.
Accountable trust receipt: €63. You will need to pay this fee to the Bank where your solicitor requests the Title Deeds from the Bank on your behalf. The fee does not apply where a customer seeks additional funds on the same security.
Security Perfection Fee for Equity Release: €600. This fee covers the Bank’s legal expenses where the Bank agrees to handle an Equity Release loan without the need for a customer to engage his/her own solicitor.
The following additional costs will be payable by the borrower for buy to let properties, and for principal dwelling housing where the loan amount is €1.5 million or over.
- 1. The borrower must reimburse the Bank for the legal costs incurred by the Lender in effecting the Lender’s Security and related tasks (excluding costs associated with the Bank’s legal investigation of title for the purpose of the mortgage);
- 2. The outlay and fees payable to state agencies for the registration of the Lender’s Security, which must be remitted to the borrower’s solicitor. The Lender’s legal costs to be reimbursed by the borrower are the following:
- (a) The Lender’s solicitor’s professional fee of €950 plus Value Added Tax per property
- (b) Outlay and fees payable to state agencies for the registration of the Lender’s Security which shall not exceed €350 per property.
The Lender’s legal costs, once paid by the borrower, are not refundable. Typically these must be paid at the closing of the transaction.
You may be liable for legal, valuation and other costs incurred in perfecting the security or any other requirements even if the Mortgage loan is not advanced.
Arrears - Interest Surcharge
If you do not pay us a repayment instalment or other sum of money by the date you are due to pay it, we may charge you a default interest rate of 0.5% per month or part of a month (which is 6% per year) on the unpaid sum. This default interest is added to normal interest.
We do not charge borrowers default interest when they are in a Mortgage Arrears Resolution Process under the Central Bank’s Code of Conduct on Mortgage Arrears and are co-operating reasonably and honestly with us.
We have a legal duty to include the notices below. They contain important and useful information. Please take the time to read them.
If a Mortgage rate is variable:
If a Mortgage is being used for debt consolidation purposes:
If a Mortgage is on an interest only term:
Repaying your Mortgage early
If you repay your Mortgage early when you are on a variable rate of interest, we charge no redemption fee.
If you repay your Mortgage early when you are on a fixed rate of interest, or change to another rate within your fixed rate period, you may have to pay an additional funding fee. This funding fee is compensation for the additional interest expense that the Bank may incur as a result of a customer breaking their fixed rate contract. If there is no additional interest expense incurred by the Bank no compensation will be required.
This is how the funding fee compensation is calculated - it is equal to “C” where:
C = Ax (R% - R1%) x D ÷ 365 and
“A” = the amount repaid early (or the amount which is changed from the fixed rate to a new rate) averaged from the date of early repayment (or rate change) to the end of the fixed rate period to allow for scheduled repayments (if there are any) and interest charges.
“R%”= the annual percentage interest rate which was the cost to us of funding an amount equal to “A” for the originally intended fixed rate period.
“R1%”= the annual percentage interest rate available to us for a deposit of an amount equal to “A” for a period equal to “D”.
“D” = the number of days from the date of early repayment (or rate change) to the end of the fixed period.
Here is a worked example: - “Amount” = €250,000, “R” = 5 %, “R1” = 3%, “D” = 2 years or 730 days.
C = 250,000 x (5%-3%) x 730 ÷ 365
So, C = 250,000 x 2% x 730 ÷ 365
Regulatory Notice for Asset Covered Security Act
Bank of Ireland Mortgage Bank - Prudent Market Value for the purposes of the Asset Covered Securities Act, 2001 Regulatory Notice (Section 41(1)) 2004 [Irish Residential Property Assets/Mortgage Credit Assets]. For the purpose of satisfying publication requirements which apply under the above referenced regulatory notice, Bank of Ireland Mortgage Bank hereby gives notice that the Prudent Market Discount that applies in relation to Bank of Ireland Mortgage Bank for the purposes of that regulatory notice is currently 0.15 (in percentage terms 15%).
Bank of Ireland Mortgage Bank subscribes to the European Voluntary Code of Conduct on Pre-Contractual Information for Home loans. A copy of this Code is available on request from Bank of Ireland Mortgages.
The lender is Bank of Ireland Mortgages. Registered Office New Century House, Mayor Street Lower, IFSC, Dublin 1. Lending criteria and terms and conditions apply. Applicants must be aged 18 or over.
Principal Dwelling Homes: A typical mortgage to buy your home of €100,000 over 20 years with 240 monthly instalments costs €615.79 per month at 4.2% variable (Annual Percentage Rate of Charge (APRC) 4.3%). APRC includes €150 valuation fee and mortgage charge of €175 paid to the Property Registration Authority. The total amount you pay is €148,114.60. We require property and life insurance. You mortgage your home to secure the loan. Maximum loan is generally 3.5 times gross annual income and 80% of the property value (90% of the property value for first time buyers). A 1% interest rate rise would increase monthly repayments by €54.02 per month. The cost of your monthly repayments may increase – if you do not keep up your repayments you may lose your home.
Buy To Let: A typical Buy to Let mortgage of €100,000 over 20 years with 240 monthly instalments costs €647.91 per month at 4.8% variable (Annual Percentage Rate of Charge (APRC) 5.1%). APRC includes a fee for the Banks solicitor of €950 plus VAT at 23% plus outlay of up to €350. The total amount you pay is €157,016.90. We require property insurance. You mortgage the property to secure the loan. Maximum loan is generally 70% of the property value. A 1% interest rate rise would increase monthly repayments by €55.43 per month. The cost of your monthly repayments may increase – if you do not keep up your repayments you may lose your home. These will vary according to individual circumstances.
LTV – Loan to Value
APRC – Annual Percentage Rate of Charge
BTL- Buy to Let