renegotiate mortgage

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oscarbandit0

Registered User
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Just listening to radio recently and one of the talk shows seemed to be suggesting that borrowers should try and renegotiate their mortgage interest rate with their lender (try and get a lower rate) - if their mortgage value was lower then the value of the house.

We have a mortgae of about 225,000 I would guess our house is worth at least 400,000. Our mrotgage is with the EBS?We are curretly paying E1200 per month.

Is this correct and how would you go about this?

Maybe I picked this up wrong and this may seem a totally stupid question:eek:
 
If your outstanding mortgage is less than 80% of the house value you will possibley get better rates from some lenders. The lower the "loan to value ratio" or LTV - the better the rate (usually).
If your figures are correct -your LTV is about 56% - and you could get a tracker mortgage of ECB plus 0.6% (or a bit lower) from NIB.
If you are on the standard variable rate from EBS your rate is probably 5.53% - so you could cut 0.78% off the rate by switching . (You will have to pay legal fees to switch)
The lowest EBS tracker for your loan size is ECB plus 1.2 - you should at least try to get put on that rate if you are not already. Just ask - there should be no fee - except maybe a valuation fee.
 
Hi irish links I will look into this immediatley. Currently waiting to have a baby and did not get a chance to check back on his thread - Thanks a mill for the advice.
 
You won't get the rates I mentioned previously from NIB anymore - they put them up from today. The best tracker NIB would give you now would be ecb plus 1% ( 5.25%). Your EBS rate is probably now 5.88% - higher than it was when you first posted your question.
EBS tracker of ecb plus 1.2% is still available.
 
That EBS tracker is only for new business, not available for existing customers.
 
I have just come off the phone from EBS. I like the OP owe approx. 228k with the value of the house at approx. 470k. I asked them what my options where after the 5.88% increase. Best they can do is 1.55 above ECB which brings it to 5.8%.
 
We are in the same boat with similiar mortgate with EBS - we have ECB (4.25%) + .95% = 5.20% - is this good value now?

As far as I can tell only AIB (5%), BOI (5.05%) and NIB (4.79%) {info taken from Rea.ie website} seem to be better.
 
Livvy said:
I have just come off the phone from EBS. I like the OP owe approx. 228k with the value of the house at approx. 470k. I asked them what my options where after the 5.88% increase. Best they can do is 1.55 above ECB which brings it to 5.8%.
Click to expand...

Just move to Halifax or BOI - both of these are covering legal fees for switching and for your LTV you could get rates as low as ecb plus 1% (5.25).
Or move to NIB for ecb plus 0.9% (no payment towards legal fees though)
 
My broker has offered me an AIB mortgage of 5.25% (mortgage €200K, house value excess €400K (who knows these days though!) and he will cover the legal fees involved as long as I switch my mortgage protection with him at the same time (the quote he gave me for mortgage protection is actually cheaper than what I am paying now.)
PM me for details of the broker if you're interested
 
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