The Gazette 1988

GAZETTE

SEPTEMBER 1988

Loans are issued in advance of this on t he unde r t ak i ng of the solicitor t he r eby dispensing w i t h t he need for bridging finance. The banks will n o r m a l l y use t h e b o r r o w e r s' solicitor - bonding being required. Allied Irish Banks: Currently the cheapest of t he banks in t e rms of r epa ymen ts per £ 1 , 0 00 - see table. En d owme nt mo r t gages are given t h r ough Allied Irish Finance - the interest rate is quo t ed at half per cen t age point higher. Bank of Ireland: It does not charge an application fee. It o f f e rs t he op t i on of having 10, 11 or 12 r epa ymen ts a year so t hat t he bo r r ower can have a mo n th or t w o f r ee of r e p a yme n t s. It o f f e rs e n d o wme nt mo r t gages but t he policy mu st be t aken out w i t h t he Bank 's o w n subsidiary " L i f e t i me I n s u r a n c e ". They are Managed Fund unit-linked policies yvith t he p r em i um level r e v i ewed every five years t o take account of the f unds' pe r f o rman c e. National Irish: It is offering a facility wh e r e by there are are no r e p a y m e n t s f o r t h e f i r s t s ix mo n t h s, but, of course, interest is c l oc k i ng up during t hat t ime. It is r e a l ly j u s t a n o t h er w a y of increasing t he loan - a useful facility for some but not costless. In mu ch t he same w a y Bank of Ireland o f f e rs loans of 9 0 % of its va l ua t i on plus £ 1 , 0 0 0. National Irish o f f e rs second mo r t gages at a declared cost of 11 Vi % w i t h it bearing all legal cos ts etc. Ulster Bank: Has been active in t he home loan business for a long t i me and o f f e rs a l ower interest rate t han either Bank of Ireland or National Irish - only marginally higher t h an AIB. THE MA IN BUILDING SOCIETIES All t he ma in building societies are n ow o f f e r i ng e n d o wme nt mo r t- gages in addition t o t he traditional type. They will also provide finance f o r t h i n g s o t h er t h a n h o u se purchase but, by law, t hey do require t he security of a mo r t gage on property. A change is proposed in t hat law but t he legislation has y e t t o be p u b l i s h e d. T he a c c omp a n y i ng table gives simply t he rates charged on loans for

Institution

Monthly Repayment Per £1,000 borrowed*

Declared Rate %

Banks Allied Irish Banks Bank of Ireland

9 . 3 7 5

£ 9 . 1 2 £ 9 . 27 £ 9 . 2 0

9 . 5 9 . 5 9 . 0

National Irish Ulster Bank

£ 9 . 1 29

Building Societies Educational

8 . 2 5 8 . 2 5 8 . 4 5 8 . 2 5 8 . 2 5

£ 8 . 6 5 £ 8 . 6 5 £ 8 . 77 £ 8 . 6 5 £ 8 . 6 5

First National

ICS

Irish Na t i onw i de Irish Permanent

*On a twenty

year

mortgage

house purchase - higher rates may apply to other loans. Wh i le t i e r ed rates are n ow banned by law whe re t hey are based on size of t he loan, some societies may charge a higher rate wh e re t he bo r r ower does not c omp ly w i t h certain requirements - such as being a member w i t h certain m i n i mum savings. This is t he case w i t h Irish Nationwide, for instance, but given t he compe t i t i on wh i ch currently exists it may well be open to negotiation. W i t h one e x c ep t i on, all t he societies in t he table charge t he same rate of interest on basic loans. The odd man out is t he ICS Building Society - an associate of t he Bank of Ireland. Its interest rate and repayment rate are higher t han the others although in all cases t he societies are cheaper t han t he banks. The rates s h own are t hose w h i c h c ame into e f f e ct for n ew borrowers f r om Ju ly 1 and are due to take effect for existing borrowers f r om Augu st 1.

Executorship Accounts Are a major headache for many solicitors We specialise in them W. A. Hennessy & Co. Chartered Accountants 5, Leeson Park, Dublin 6. Tel: 971237 Telex: 265451 MONREF G Ref: EIM 656

Agricultural Consultant Services include Damage and Loss Assessment, C.P.O.'s, Insurance Claims,

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