80% of variable rate customers could save by switching

Sarenco

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As many as 80% of borrowers currently on (non-tracker) variable rate mortgages could save money by switching to alternative products, according to the Central Bank.

80%!!!:eek:
 
I am counted in that 80% but am unable to move. Plenty more in that boat I would imagine

You don't necessarily have to move provider to make savings by switching to an alternative mortgage product.
 
As many as 80% of borrowers currently on (non-tracker) variable rate mortgages could save money by switching to alternative products, according to the Central Bank.

80%!!!:eek:

80% seems a little high.

How many borrowers are on non-tracker variable rate mortgages?
 
Why is it a surprise to you that people wont switch,god knows what your signing, sure they cant figure out what we signed in 2007. Get legal advise, get valuation's bla bla bla, people dont have extra cash nor tolerance, time, patience or according to some of you on here intelligence to switch .It's called non confidence in the banking sector.
 
.It's called non confidence in the banking sector.

Why would you need any confidence in the banking sector to switch to a lower cost loan product?

They are lending you the money - not the other way around.
 
42.5% of all outstanding PDH loans (per the latest Central Bank statistics).

Sarenco,

Does the report show the actual number of mortgages that the 42.5% represents or alternatively could you provide a link to the statistics?
 
Sarenco,

Does the report show the actual number of mortgages that the 42.5% represents or alternatively could you provide a link to the statistics?

I took the % from the latest household credit market report:-

[broken link removed]
 
Sarenco
I would echo what once again says
I recieved the offer of a free valuation and a move from 4.5 to 4.3 from ptsb almost 2 years ago
But i only just took advantage in the last 2 months after reading about it on this forum
 
Sarenco
I would echo what once again says
I recieved the offer of a free valuation and a move from 4.5 to 4.3 from ptsb almost 2 years ago
But i only just took advantage in the last 2 months after reading about it on this forum

Hi aprentice

Can you explain what held you back? I gather PTSB wrote to all relevant borrowers - twice - about the new MVR rates but only ~20% took up the offer. Did you think PTSB was up to some trickery?

I'm not having a go by the way - I'm genuinely confused. Is a lack of trust in our banks causing people to "freeze" in terms of taking financial decisions? Or is it something else?
 
I took the % from the latest household credit market report:-

[broken link removed]

Thanks for the link.

It does not appear to show the total number of mortgages, not that I could find anyway.

According to FF, there are at least 300,000, which means that 240,000 could benefit from switching and the remaining 60,000 either cannot switch or would not benefit from switching.

Does that sound approximately right?
 
Why would you need any confidence in the banking sector to switch to a lower cost loan product?

They are lending you the money - not the other way around.

I wouldn’t dismiss Onceagain’s comments.

I think that many people cannot evaluate what different mortgage products would mean to them without professional advice.
 
Sceptical about the 80%! If including people's in negative equity this is not due to inertia but no choice until they are at a stage where another bank will allow them to switch. Shall any bank make a call to people in negative equity we would quickly see some move there!
 
We're in our house in Dublin almost three years and have moved mortgages from BOI to KBC and more recently to AIB in that time. Its a complete no brainer to move if you're on a variable and are in a position to do so regarding your LTV. Better the money in your pocket than theirs and its really not that much hassle to do so - Depending on future rates etc, you have the potential to knock months if not years off your mortgage in the long run.

As an experienced recent switcher can you tell us for each of those banks what you had to do to switch?

Did you also move your bank accounts?
 
Hi aprentice

Can you explain what held you back? I gather PTSB wrote to all relevant borrowers - twice - about the new MVR rates but only ~20% took up the offer. Did you think PTSB was up to some trickery?

I'm not having a go by the way - I'm genuinely confused. Is a lack of trust in our banks causing people to "freeze" in terms of taking financial decisions? Or is it something else?

To the letter from the PRSB with a lower rate, does it not strike you as odd that 80% of their customers did not tick a box, which I presume is all this rate required, to get a lower rate.
 
Has anyone switched mortgage in the first year? Im taking out EBS FTB mortgage at moment for cashback but want to move straight away then. Posters on here have indicated UB require you to be 12 months with current lender before switching - any switch within first year to KBC etc?
 
Hi aprentice

Can you explain what held you back? I gather PTSB wrote to all relevant borrowers - twice - about the new MVR rates but only ~20% took up the offer. Did you think PTSB was up to some trickery?

I'm not having a go by the way - I'm genuinely confused. Is a lack of trust in our banks causing people to "freeze" in terms of taking financial decisions? Or is it something else?

Yes i was thinking whats there angle
Why offer me something that saves me money ,i was thinking maybe there was some small print somewhere locking me into the MVR and then once in they would push the rate up .
 
Here is the quote from the Central Bank's Opening Statement

"The vast majority of SVR borrowers in positive and negative equity could benefit from either switching to another provider or to another product with the same provider. Switching offers the dual benefits of potentially reducing monthly costs and/or the length of the mortgage, with potential savings of tens of thousands of euros. The more people who start to switch, the less the ability the banks will have to differentiate between new borrowers and existing."

And in response to Michael McGrath

Sibley
97% of SVRs can switch to a lower rate.

Where does this come from?

AIB has about 25% of the market. Here are their rates:

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They can't switch to a lower rate within AIB.

Those with a restructured loan or with LTV >90% can't switch to another lender.

Those on LTV <80% could switch to KBC to get a reduction of 0.2%, but it's KBC's policy not to pass on rate cuts to existing customers so they would be stupid to do so.

KBC
Those over 90% LTV can't switch to another lender and I don't think that they can get a cheaper product from KBC.

Many who could switch are on low rates and would not save by switching to another lender.

BoI
Every variable rate customer can get a lower rate by fixing.

ptsb
Those on SVRs can switch to an MVR and should do so.
Those on MVRs who could switch to another lender should do so.

But many can't switch due to NE or arrears.

Brendan
 
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