PPR in Dublin was purchased in 2014. Variable mortgage of 4.3% with BOI.
Interest rates subsequently started to decrease and banks started offering cashback to switch.
KBC offered us a variable rate of 3.55% plus €1,000 cash back to move [Broker we used was also offering free home insurance plus valuation fee as an incentive to use them]
All things being equal over the term of the mortgage, this lower rate with KBC would equate to a saving of four years over our term if we continued to pay the same monthly amount that we were paying to BOI;
Four years is a big saving,
We put it to BOI that if they didn't match the KBC offered rate (We were only interested in variable) that we could be taking our business elsewhere.
They did then lower our rate from 4.3% to 3.9%, but would not match KBCs 3.55%
So, we went to a broker who handled the switch (further info on switch requirements below)
The switch was completed in three to four months, we had to open a KBC current account and ensure salary was paid into it as part of the process.
Approximately two months after we drew down the variable mortgage with KBC, they lowered their variable rates.
I called them and asked that as we were in the applicable LTV bracket, could this new lower rate be applied to our mortgage also.
The answer was an unequivocal no. The rate decrease wasn't massive, but their negative response really annoyed me. The response came from someone in their call centre and despite my requests to speak with someone more senior on it, it was flat no.
Another few months later, their variable rates dropped again. My request for this new rate to be applied to our account again fell on deaf ears. At this stage, I told them that even though our mortgage was only with them six months or so, I was more than prepared to move it from them if they would not apply this lower rate.
They didn't - so, I followed through and moved our mortgage away from KBC to AIB where we are now on 3.1%
(We went directly with AIB this time as opposed to a broker, got the €2K cashback and the process was very efficient)
AIB requirements for the switch below (very similar to those required by KBC)
1. Completed AIB salary certificates
2. Most recent 3 consecutive payslips
3. P60s for both of us
4. 6 months Mortgage statements for KBC
5. 6 months statements for all accounts NOT with AIB (Current, deposit, loans, credit cards)
6. Completed application form
7. A completed valuation form, valuer must be chosen from the AIB approved listing. Charge was €150
8. We subsequently needed to provide originals of Fire Cover and Mortgage Protection Cover.
People think that moving their mortgage is hassle. Yes, there is some admin involved, but its nothing more than a few emails/phonecalls and printing/photocopying.
When you realise the savings that you can make by this nominal amount of 'admin' you will realise that it really is an easy and obvious decision. Those four years that we have potentially saved by moving will go a very long way towards our kids college fund.
If you're hopefully in a position to be able to move, make it your New Years Resolution to just do it- you'll thank yourself later!
Interest rates subsequently started to decrease and banks started offering cashback to switch.
KBC offered us a variable rate of 3.55% plus €1,000 cash back to move [Broker we used was also offering free home insurance plus valuation fee as an incentive to use them]
All things being equal over the term of the mortgage, this lower rate with KBC would equate to a saving of four years over our term if we continued to pay the same monthly amount that we were paying to BOI;
Four years is a big saving,
We put it to BOI that if they didn't match the KBC offered rate (We were only interested in variable) that we could be taking our business elsewhere.
They did then lower our rate from 4.3% to 3.9%, but would not match KBCs 3.55%
So, we went to a broker who handled the switch (further info on switch requirements below)
The switch was completed in three to four months, we had to open a KBC current account and ensure salary was paid into it as part of the process.
Approximately two months after we drew down the variable mortgage with KBC, they lowered their variable rates.
I called them and asked that as we were in the applicable LTV bracket, could this new lower rate be applied to our mortgage also.
The answer was an unequivocal no. The rate decrease wasn't massive, but their negative response really annoyed me. The response came from someone in their call centre and despite my requests to speak with someone more senior on it, it was flat no.
Another few months later, their variable rates dropped again. My request for this new rate to be applied to our account again fell on deaf ears. At this stage, I told them that even though our mortgage was only with them six months or so, I was more than prepared to move it from them if they would not apply this lower rate.
They didn't - so, I followed through and moved our mortgage away from KBC to AIB where we are now on 3.1%
(We went directly with AIB this time as opposed to a broker, got the €2K cashback and the process was very efficient)
AIB requirements for the switch below (very similar to those required by KBC)
1. Completed AIB salary certificates
2. Most recent 3 consecutive payslips
3. P60s for both of us
4. 6 months Mortgage statements for KBC
5. 6 months statements for all accounts NOT with AIB (Current, deposit, loans, credit cards)
6. Completed application form
7. A completed valuation form, valuer must be chosen from the AIB approved listing. Charge was €150
8. We subsequently needed to provide originals of Fire Cover and Mortgage Protection Cover.
People think that moving their mortgage is hassle. Yes, there is some admin involved, but its nothing more than a few emails/phonecalls and printing/photocopying.
When you realise the savings that you can make by this nominal amount of 'admin' you will realise that it really is an easy and obvious decision. Those four years that we have potentially saved by moving will go a very long way towards our kids college fund.
If you're hopefully in a position to be able to move, make it your New Years Resolution to just do it- you'll thank yourself later!
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