Variable Interest Rate Policy

 

Warning: We may change the interest rate on this loan. This means that the cost of your monthly repayments may increase or decrease

This statement details the factors we consider when setting our variable interest rates for mortgage loans. We only offer a variable interest rate on an owner - occupied property.
Please note fixed rates are available on request. Fixed rates are set in line with the Banks Fixed Rate Policy and then approved by the Bank’s Mortgage Interest Rate Committee.
What do we consider when setting our variable interest rates?

There are a number of factors we consider when we set or change variable interest rates and these include:
  • Credit Risk: We estimate potential losses from our mortgage loans due to non-payment by our borrowers. 
  • Cost of Funds: In order to lend to customers, the bank needs to source funding (money) from both the financial markets and customer deposits. The cost of getting this money into the bank represents the bank’s own cost of borrowing. 
  • Capital requirement:We are required to maintain a minimum level of capital to support our lending activity
  • Operational Costs: We take into account the expenses which are related to the running of our business including but not limited to staff, administration, regulatory and infrastructure costs. 
  • Business Strategy and Expected Returns: We have a target return we aim to make on our mortgage business which is built into our variable mortgage rates
  • Competitive Position and Environment: The variable interest rate we charge takes into account the high calibre of service underpinning our mortgage offering coupled with the mortgage market we operate in.  
How do we make decisions when setting variable interests rates?

Investec Bank PLC (Irish Branch) “The Bank” has a Mortgage Interest Rate Committee (“The Committee”) that meets at least quarterly to review our variable interest rates on our mortgages and more often if required. The Committee recommends any changes to the Bank’s variable mortgage rate which are then implemented and communicated to borrowers.

Why do we have different variable interest rates?


We have different variable interest rates on our mortgages due to the Loan-to-Value of the mortgage but also the borrower’s financial circumstances. Our current variable interest rates are as follows:
 
Mortgage Type Description Variable Interest Rates Available
Owner Occupier An owner occupiermortgage is used forthe purchase orrefinancing of a PrivateDwelling House (PDH)
  • Loan to Value (LTV) VariableInterestRate at or below 50%at inception ofthe loan
  • Loan to Value (LTV) Variable InterestRate above 50% and equal to orbelow 80%at inception of the loan
Mortgage Type Description Variable Interest Rates Available
Owner Occupier An owner occupiermortgage is used forthe purchase orrefinancing of a PrivateDwelling House (PDH)
  • Loan to Value (LTV) VariableInterestRate at or below 50%at inception ofthe loan
  • Loan to Value (LTV) Variable InterestRate above 50% and equal to orbelow 80%at inception of the loan

Loan to Value (LTV) Variable Interest Rate: The LTV variable interest rate available to you depends on your LTV band. Your LTV band is the percentage representing the difference between your loan amount and the value of your property. For example, if you have a mortgage of €80,000 on a property valued at €100,000, your LTV rate band would be 80%.
 
Could you get a different type of interest rate or a lower interest rate?
It is important to note that you are not tied in your choice of mortgage provider, and like many other financial products: for example your current account; you can in most circumstances choose to refinance your property with another bank.
While our aim is to remain competitive within the Irish mortgage market, we would encourage you to consider your mortgage on a regular basis as part of a review of your overall financial health. A good source of rates available in the market is available at the below link
http://compare.consumerhelp.ie/Mortgage
If you feel that there may be a more attractive mortgage rate available to you please do not hesitate to contact your relationship manager and they would be happy to discuss.
WARNING: YOUR HOME IS AT RISK IF YOU DO NOT KEEP UP PAYMENTS ONA MORTGAGE OR ANY OTHER LOAN SECURED ON IT. THE PAYMENT RATES ON THIS HOUSING LOAN MAY BE ADJUSTED BY THE LENDER FROM TIME TO TIME