Just Switched from BoI to AIB - saving €1,200 a year

D

Deathknell

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The basics..
Bank of Ireland Mortgage. Variable Rate Customer.
Amount Borrowed€245,000 over 30years. 10 years of repayments (missed 3 due to layoff, repaid) Self Employed
19 Years remaining
Current VR - 4.35%
Monthly repayments - €1150

Switched - To AIB. Got 3.36%
Monthly repayments now €1005

Thats 145*228= €33,060 savings at that rate

You are a mug if you dont switch.



Delighted.
 
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Well done @Deathknell for switching. The 33k saving in the bank is all you need to concern yourself with. Suggest you use the first 145 euro 'saving' to treat yourself, and then consider paying half the saving as a regular over-payment (say 70 euro a month). This would see the term of your mortgage reduce by 1 year 8 months, and provide you with an additional saving of around 5,500 euro in interest payments.


As has been said before, no one should really be on a variable rate with BoI. If they can switch they should to a bank that offers reasonable variable rates. If they cannot switch, they need to seriously consider going to a fixed rate until they can switch
 
Thanks gnf. Only sorry that I didn't do it years ago, but LTV were against me.

I plan to work the principal to the ground as soon as possible.
I was overpaying by €850 for the last year to make sure I got it under <70% LTV. I will continue that as long as possible, with the additional monthly saving. I want to be shot of the mortgage in the next 10 years if I can.

I did a basic spreadsheet showing the reductions if I overpaid - painful on the wallet - but it makes a huge difference at the end.

It wasn't complicated but bureaucratic to say the least - especially as a self employed person. It was at least 20 hours work all told and took 2 months to finalise, - but worth it.
 
Brendan Burgess said:
Well done on switching.



When did you miss your repayments? Were they still on your ICB record? Did AIB raise the issue at all?

Brendan
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Back in 2012. Went ~6k in arrears I think. Just to add - it was 3 payments I missed, not 3 years in case I gave that impression.
When I got a new gig, I repaid BOI over a few months. Gave them something, then agreed an over-payment of the monthly to reduce and eliminate.
I think in hindsight, that was the key, promised to pay them and delay, delay until you can manage it.

I checked my ICB record and it didn't seem to be recorded, so I don't know if they registered that. I guess if I'd gone into some formal remediation, that may have occurred.
 
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Deathknell said:
The basics..
Bank of Ireland Mortgage. Variable Rate Customer.
Amount Borrowed€245,000 over 30years. 10 years of repayments (missed 3 due to layoff, repaid) Self Employed
19 Years remaining
Current VR - 4.35%
Monthly repayments - €1150

Switched - To AIB. Got 3.36%
Monthly repayments now €1005

Thats 145*228= €33,060 savings at that rate

You are a mug if you dont switch.
Click to expand...

19 years is a long time. Absolutely no guarantee whatsoever that the status quo regarding those rates will be maintained over the course of the mortgage, or even one year out for that matter. You may not save at all. FWIW, on the basis of the information given, I don't think your calculations are correct either as €1150 - €1005 = €145, but it's largely incidental for the reason just stated.
 
Deathknell said:
I did a basic spreadsheet showing the reductions if I overpaid - painful on the wallet - but it makes a huge difference at the end.
Click to expand...

If you go to moneysavingexpert.com they have a very handy overpayments calculator that is very good.
 
demoivre said:
19 years is a long time. Absolutely no guarantee whatsoever that the status quo regarding those rates will be maintained over the course of the mortgage, or even one year out for that matter. You may not save at all.
Click to expand...

yes of course you are correct here. But at the moment BoI are not showing any indication of being willing to move on variable rates, and have more or less told the minister to 'p155 off' anytime they have tried to pressure them.

No one knows where individual interest rates are going short term/long term but once someone has switched they are no longer scared of the prospect and are probably more likely to do it again.

The fact remains that the OP will continue to save on his mortgage if he continues to be in a position to switch, and acts on this, when the need arises. On this assumption they would always remain on a relatively low rate (based on market availability) and therefore would be saving. Staying with a single bank (and in particular BoI) certainly does not guarantee this.


@Deathknell just so you are aware, I switched from BOI to KBC in May 2015 - moving from 4.35% to 3.55%. I have been massively frustrated with KBC over the last 12 months, and have an outstanding FSO complaint with them. However, despite the fact that my KBC rate was not the lowest in the market for a number of months, I still made a saving over these 18 months from my BOI position. The decision to switch was still the right one.
 
demoivre said:
19 years is a long time. Absolutely no guarantee whatsoever that the status quo regarding those rates will be maintained over the course of the mortgage, or even one year out for that matter. You may not save at all.
Click to expand...

He's saving today. If the rate goes up next month he's still saved €145 (assuming the bank paid the switching costs) .
He can always switch again if his current bank mess him about .

For me the biggest barrier for switching was the unknown . If I ever need to switch again I'll be well prepared . Switching is complicated the first time . The second time I'll know what to expect and what is expected of me . I'm sure Deathknell and every other switched in Ireland is in the same boat .
 
Deathknell said:
The basics..
....Delighted.
Click to expand...

Congrats Deathknell,

Would you mind doing a bullet point summary of the steps involved / key things to watch out for.

Also, who paid for and how much were the costs involved in switching, etc.?

Well done, again
 
qwerty5 said:
He's saving today. If the rate goes up next month he's still saved €145 (assuming the bank paid the switching costs) .
He can always switch again if his current bank mess him about .

For me the biggest barrier for switching was the unknown . If I ever need to switch again I'll be well prepared . Switching is complicated the first time . The second time I'll know what to expect and what is expected of me . I'm sure Deathknell and every other switched in Ireland is in the same boat .
Click to expand...

Saving - Lads, I've already made money.
The fees, valuations etc., came to approx €1300, AIB give you €2000 toward the switch regardless. So, technically I've already made €700. (the 2K hasn't been paid yet but apparently its automatic once the switch is made)
 
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