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 Investec Private Finance Ireland Limited (“the Lender”) consider when setting our variable interest rates for owner occupier mortgage loans.

Please note fixed rates are available on request. Fixed rates are set in line with the Lender's Fixed Rate Policy and then approved by the IPFIL Board of Directors.

  • 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.
    • Funding Costs: In order to lend to customers, the Lender needs to source funding (money) from the financial markets. The cost of procuring these funds, together with any other aspect of funding arrangements, represents the Lender’s own cost of borrowing. The IPFIL variable interest rate is set at a level that will ensure all aspects of funding costs are covered by interest income.
    • 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.

    Variations or changes in these factors may result in changes to the variable interest rate.

  • How do we make decisions when setting variable interest rates?

    The Board of Directors of Investec Private Finance Ireland Limited ("the Board") meets at least quarterly (or more often if required) to review our variable interest rates on our mortgages. The Board approves any changes to the IPFIL variable mortgage rate which are then implemented and communicated to borrowers.


    Investec variable interest rate:
     

    We have one variable interest rate across all Loan to Values on our owner occupier mortgages. Our current variable interest rate is as follows:

    Mortgage Type Description Variable Interest Rates Available
    Owner Occupier An owner occupier mortgage is used for the purchase or refinancing of a Private Dwelling House (PDH) One variable rate of 2.95% p.a. applies to all residential Mortgages for owner occupiers

  • 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 or financial institution.


    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 and keep your mortgage arrangements under review.  A good source of information is available at the following link: https://www.ccpc.ie/consumers/money/mortgages


    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 ON A 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