EBS remortgaging option ?

K

Kizzy

Registered User
Messages
23
Hi folks

I have 25 years left on a 30 year variable rate mortgage with EBS. My house is worth €350 and my LTV is 33%. From reading the very informative posts on AAM, it would appear that I would make significant savings on my mortgage if i switched to a tracker LTV <50. With this in mind I contacted EBS to enquire about remortgaging to a tracker mortgate and was advised that because I only borrowed less than €150K initially they would not be willing to allow the switch.

I was just wondering if any posters had similar experiences, and if I was given the incorrect advice ?, I have to say that I was disappointed with the lack of help I received from EBS on this matter, considering that I have both my mortgage, small loan, and savings account with them. Is this usual practice ?..... am half tempted to go with NIB but dont want to live to regret if if EBS demutulise in the near future and I miss out on a possible windfall .

Any advice ? thanks
 
there is no guarantee of the EBS doing anything in the future. Personally i would switch somewhere you will actually see a difference on your mortgage every month. You can always keep your loan and savings account in EBS if you think you want to be "in there" for when demutualisation happens.
They are making money from you being on the less suitable mortgage so i think if you want the tracker you should take the day off and go into your branch and actively pursue it. But i would shop around and know what the competiters are offering as well.
 
Sounds like a bit of a dilemna alright.

I think it does work like that alright, i.e. you are stuck with the initial tracker/variable rate that was based on the LTV of the loan at inception.

If your LTV changes in the meantime I think you are stuck with it.

However if you topped up resulting in your LTV rising above a certain threshold - 60/75% for eg - you would still be on the lower rate based on the lower LTV of the loan you initially took out AFAIK.
 
Thanks Nelly for the helpful advice, I'll do a bit more research and hit EBS again. Although I have to say that the messsage I am getting from them is - because you are not mortgaged up to the hilt we wont help you save a few bob. Incidentally, I have always used EBS. I had a mortgage with them on my first property, and when I sold up and moved, I kept my business with them for a mortgage on the new house. I dealt with the same branch in Dublin as a result of finding the manager very helpful, but I dont think he is there anymore....
 
Thanks DV8,

I initially bought the house for IE£131K, and took out a mortgage of IE£100K ( as I used profit from sale of previous house to fund balance ) seems a bit ridiculous to me that I could get what I want from NIB but not with EBS. !
 
I have a mortgage of 140 with the EBS and they have just confirmed that they will now charge me the ecb tracker + 1%. At the moment i am stupidly paying 5%. as i only started really looking into this about a week ago. I rang my local branch and they said they were unable to help me it was company policy not to give any discounts. I then emailed the head office and told them i was not happy and i would transfer my money out that it when they gave me the 1% tracker rate. I have gone back to them again asking as to why i should stay with them when NIB will give me a better offer. When i looked at it on this calculator then it made a lot more sense to me and the guilt that i had of transferring from my friend in the EBS to joe soap in the nib soon became clear.

http://www.jeacle.ie/mortgage/ie/ (Thanks LDFergusonfor the Link)

140,000 over 12 years @ Nib Rates 4.5%​

​
Principal:
€140,000

Start date:
April 2007
Interest %:
4.5

End date:
March 2019
Years:
12

Monthly payment:
1,260.01
Annual insurance:
€0.00

Total interest:
€41,441.76


140,000 over 12 years @ ESB Rates 5%
Principal:
€140,000

Start date:
April 2007
Interest %:
5.0

End date:
March 2019
Years:
12

Monthly payment:
1,294.85
Annual insurance:
€0.00

Total interest:
€46,457.71
Annual tax:​


The Difference with only 0.5 % of a difference over the 12 years is over 5000 Euro.
At the moment i am waiting for the EBS to counter offer
 
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