Hi there,
When EBS reduced their fixed rates in October they removed the LTV bands, so everyone could get the same rate. You could pay off a lump sum in the morning, and immediately fix for 3.15% for 1, 2, or 3 years.
Your previous arrears will show up on an ICB report, so not sure how other banks would look at it if you wanted to switch. Your balance is not huge so you wouldn't get much cash back from BoI for example if they did take you on.
If I were you, my only decision would be if I wanted to shorten the term before fixing, and stick with EBS.
Agree the % cashback is not much benefit to you because your balance is so low. You would need to consider flat rate switching incentives.Your previous arrears will show up on an ICB report, so not sure how other banks would look at it if you wanted to switch. Your balance is not huge so you wouldn't get much cash back from BoI for example if they did take you on.
Hi, pay lump sum first if you can.
If you pay a lump sum off a fixed rate, then the bank can calculate if a break fee is chargeable.
Just with EBS make sure you explain how you want the lump sum treated. I think if you reduce the term, then you have amended the contract and can't automatically make it longer again if you need to.
Yes. Once you pay the lump sum, you need to ask them to either:do I have to make a decision regarding reducing the term or otherwise
Caveat here that you remain on variable.or example, after the lump sum is paid can I not just keep paying the amount I currently pay on a monthly basis which ultimately results in the mortgage being paid off faster but would also offer some flexibility in the event that I had to revert to a reduced payment at some future point due to financial circumstances?
I hadn't actually thought about that before, but it does make sense. Particularly those who are planning their finances for maximising pension contributions before retirement etc, having certainty over mortgage repayments allows that kind of planning. It's a good point. Regardless - in the context of what else is available I do think the 10 year rate from KBC represents good value for those who can avail of it.@RedOnion have you any thoughts on people going into 10 year fixed term agreements towards the end of their mortgages to give them effectively a guaranteed fixed term for the remainder of the mortgage? To me it seems like a good idea as it provides full certainty with minimal downside - small reductions in rates would not make material difference in repayments. Maybe I am biased as I like the european models of lifetime fixed mortgages, albeit at lower rates than us currently
I'm a little biased in the other direction as I hate being in debt so wanted the flexibility to repay my mortgage as quickly as possible.
Congratulations on that ! No idea what age you are, but its still a major milestone !I'll hopefully have my mortgage fully repaid this summer.
No. As a variable rate customer you can overpay your mortgage without penalty as you wish. This is part of the variable product.Will the EBS have any issue with me paying off the lump sum and then immediately looking to switch from a variable to a fixed rate (given that they would normally penalise someone paying a lump sum on a fixed rate)?
I only want to deal with them in writing
For some things yes, for some things no. You don't have to deal with them in writing to pay a lump sum. You just ask them what you need to do to make the lump sum payment into. This is a standard request for a variable rate mortgage holder.should I just write to them first about the lump sum
then once that's been paid to go back to them on switching to the fixed rate
I disagree with RedOnion hereDo it all as one, exactly as you've outlined.
I think this may not be as straight forward as you would hope if the customer has an impaired ICB record. It is better to try clear that than make requests to EBS that they know are unlikely to be agreed to.If it was me I would write to the EBS mortgage department asking about whether they would be willing to match the KBC 10 year rate. At worst it might perk them up a bit to try and keep you.
That's strike 1!I disagree with RedOnion
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