Sorry if this is a silly question but when I finish my current fixed rate with my current provider and I want to switch to another of their fixed rates...do myself and my wife have to go through all the hassle of printing out 6 month's banks statements,salary certs,credit card statements etc etc.....? Or do the bank just simply put us on to the new fixed rate no questions asked?
Switch to new rate with current lender question...
- Thread starter toby2111
- Start date
NoRegretsCoyote
Registered User
- Messages
- 5,766
I've chosen a new fixed rate every year or two for many years with the same lender. I've never been asked for proof of anything and to the best of my knowledge no bank will do this.
Thanks.....does anyone know if I would have to pay a break fee if switching to another of their fixed rates while still on a fixed rate? If I said I was going to switch banks,would they be prepared to waive the break fee if I signed up to a longer fixed rate?
NoRegretsCoyote
Registered User
- Messages
- 5,766
Ring them up and ask. They will tell you over the phone.
@toby2111 If you post your mortgage details in the format requested in the mortgage switching thread, you will get an estimate of your break fee and guidance on the best rate for you.
Are you able to list the various dates (month and year) when you first fixed and re-fixed? It seems surprising that you never had to pay a break fee (though it's not impossible).
Not without going through all my old paperwork, but from memory I have changed at least 4 times.
I got caught once alright when I fixed and the variable rate went lower.
The breakage fee question is always the first one I ask.
Hi everyone again! Sorry about bringing up an old thread but thought it better than starting a new one.Was talking to a broker about switching and he said it may be difficult. My wife started a new job in March and is 3 days a week part time,still on probabtion until late August and only on 18k a year. I'm on 70k a year so he said that banks won't look at my wifes income as she is still on probabtion.
I got a quote from PTSB in May and the best rate they were offering is a 5 year Green rate at 2.8% with no break fee. I know thats now out of date but if I ring today and ask again,will that rate be locked in before todays ECB rate hike announcement? A switch to another lender will take at least 3 months and rates will have gone up by 0.75% or 1% by then. So I'm thinking to lock in 2.8% would be best as I'm paying 3.25% now
I got a quote from PTSB in May and the best rate they were offering is a 5 year Green rate at 2.8% with no break fee. I know thats now out of date but if I ring today and ask again,will that rate be locked in before todays ECB rate hike announcement? A switch to another lender will take at least 3 months and rates will have gone up by 0.75% or 1% by then. So I'm thinking to lock in 2.8% would be best as I'm paying 3.25% now
Brendan Burgess
Founder
- Messages
- 52,142
You should not switch to PTSB. They have special high rates for existing customers, so when you come off your introductory deal, you will be exploited.
Brendan
Sorry,I should have clarified,I'm currently with PTSB paying 3.25. A switch to a new lender may take up to 3 months(and it seems they wont take my wifes income into consideration as shes still on 6 months probation). So by time I could switch, rates potentially will have jumped by 1%. So even the cheapest fixed at 2% will be 3% in a few months time. Therefore,would my quickest and best strategy be to lock in today with PTSB 5 year green fixed at 2.8%. And will that rate stay or will it jump after todays annoucement by .25% or even .5%?
@toby2111 There is no way (with most lenders) to lock in a given interest rate. But you probably don't have to worry too much because PTSB have said that they may absorb the first round of ECB rate increases, i.e., not pass them on to customers.
Your break fee is probably still zero but you should check again. You will need a BER cert showing a rating of B3 or better to get that rate.
You could consider the following approach:
- Re-fix immediately on PTSB's 2.8% green rate
- Continue with the process of switching to another lender but abandon it if necessary (see below)
The downsides of this approach are:
- You will still be a customer of PTSB, and they don't offer their best rates to existing customers, and so in 5 years you will face their (probably higher) mortgage rates, unless you switch then
- There could be a break fee from PTSB by the time you finally draw down with another lender
- That will happen if this rate decreases compared to its level today
Thanks Paul. I just want to try get the best possible rate ASAP. So that's why I'm thinking to jump on the 5 year green rate at 2.8%(we have B3 ber).
If i still go with a switch,would banks just look at my income alone (70k)? Would that be enough to secure a mortgage of 208000?..that's what's left over 22 years.
If i still go with a switch,would banks just look at my income alone (70k)? Would that be enough to secure a mortgage of 208000?..that's what's left over 22 years.
I think the cost and hassle of switching with a balance of 208k is probably not worth it. The difference between a 2.4% and 2.8% rate is about €38 a month and as you said, it can (and is) taking about 3 months to switch.
See if you can haggle the "new business rate" of 2.35% by saying you have commenced switching process to avant but doing a final check if ptsb could give the new business rate. - Probably won't work, but costs nothing to try
Possibly – lenders also base their decision on your overall finances (outgoings, etc.). You'd have to approach them.
@toby2111 is eligible for AIB's 2.15% 5-year green rate, or Haven's 2.0% 4-year green rate, which both offer €2,000 cashback. The rates might be higher than they are now in 3 months, but I doubt they will be 2.8%.
What is your estimated property value?
@peemac Sure there is hassle in switching but if @toby2111 doesn't do it now they will probably want to do it in 5 years' time when they face PTSB's existing-customer rates.
Agreed.
Last edited:
Estimated value 370,000
Today's hike is 0.5 and there's talk of another 0.5 hike in September. So would AIB and Haven rate not also be 1% more expensive by the time I was to switch?
I had certainly planned to switch away from PTSB but if I have to go with them for a further 5 years then so be it. I'll switch when that term is up.
We don't know how much of the ECB rate hikes Haven and AIB will pass on to their customers – or how quickly. Their rates might be 1% higher in September than they are now but they might not be.
The best laid plans... There are various reasons why you might not be able to switch in 5 years' time – basically anything that causes your financial situation to deteriorate in the meantime, and some of the reasons listed here.
All of that being said, re-fixing now with PTSB doesn't seem like a bad idea. And if you do that you could still try to switch straight afterwards to another lender, bearing in mind the warnings I gave above.
Would a phone call to the mortgage team be the best way to haggle?Or should I arrange a meeting in my local branch? I somehow doubt that the advisers at the end of the phone have any wriggle room when it comes to haggling....
Branch may be the best option. I'd go in looking for the break fee or information on how the switching process works and whether you need to do anything such as give them notification (play the innocent "I know nothing" type)
They'll probably ask why you are switching and simply say "Avant are offering me 2.35% for a 7 year fixed and the best PTSB are offering is 2.8 for 5 years as I am not a new customer so cannot get your 2.35% rate"
Pause for a bit
then "if the 2.35% rate was available, I'd stay with you".
Its then in their hands to answer.
I earn a little more than that and they were willing to give me 255k over 20 years, so probably.