Is it worth switching?

I

inaquandert

Registered User
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I'm looking for advice regarding switching mortgage provider, I've been told it's not worth my while as I won't make a great saving and am just wondering if that's true

remaining mortgage 100000
rate 3.7% svr
time left to pay 13.5 years

have already been paying for 11.5 years
payments per month 73.80
I was a first time buyer

I suppose I want to know how much would I / could I save???
 
Hi inaquandert

Could you give us a sense of your current LTV (i.e. how much do you think your home is worth relative to your outstanding mortgage balance) and who is your current lender?

I would be surprised if you couldn't materially improve on 3.7% from what you have told us so far.
 
OK, your LTV is 65%(100/155)

The best deal is AIB 3.3%

That would save you 0.4% a year or €400.

But AIB will pay €2,000 towards your costs, so yes, it's worth it as you start saving immediately.

But...
Does AIB accept switches from EBS? I don't know the answer to that.

EBS will announce some repricing of mortgages shortly. My gut feeling is that it will not benefit existing customers, though.

What about Frank

If Frank starts lending at 2.8%, then you will save €900 a year.
I gather that they will not contribute to your legal costs which should be around €1,500.
So for an investment of €1,500, you will get a return of €900 which will take you just short of two years to recover.
 
Thanks I think it's worth a try especially since EBS don't seem too keen on passing on rate cuts Is there any inkling of when Frank will be here? Do they have a good reputation?
 
Brendan Burgess said:
OK, your LTV is 65%(100/155)



But...
Does AIB accept switches from EBS? I don't know the answer to that.

EBS will announce some repricing of mortgages shortly. My gut feeling is that it will not benefit existing customers, though.

.
Click to expand...

Brendan, can I ask on what grounds they could refuse to allow switching from EBS to AIB? They seem to be operating as two separate banks for the purposes of mortgage rates, so why would they see it as one entity when switching is involved?

I've spoken to AIB 3 times and to EBS twice, stating my intention to move from EBS to AIB. No one yet has said that it is not allowed (which doesn't mean it isn't true!).
 
Any bank can turn down any application for a mortgage.

I have no idea whether AIB will pay €2,000 to take a mortgage from EBS. It seems bizarre to me, but it might well happen.

Brendan
 
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