Changing from EBS

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mattym

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At the moment i am overpaying my mortgage with the EBS on a variable rate of 3.7% and they are offering a rate of 3.25% to fix for 5 years. There is about €150,000 outstanding with the house valued at about €200,000. Firstly, if i fix will i still be able to overpay each month as i am at the moment and secondly, would there be large savings to be made by moving from the EBS? When i started overpaying 2 years ago i was amazed what it was going to do to the length of the mortgage so my main aim is to clear it as soon as i can. I'm pretty clueless when it comes to this so my apologies if these are stupid questions. Thanks.
 
Hi mattym, if you are clueless, the best place to start is doing your own research. https://www.askaboutmoney.com/forums/mortgages-and-buying-and-selling-homes.2/ has lots of information about rates, best buys, overpaying etc. This way, you have some information yourself, and are in a better position to analyse information that other people provide, and will certainly be in a better position when talking with the banks. Saying you are clueless to a bank IMO is a recipe for disaster!

You cannot over pay a fixed mortgage by the same amount as you would be able to on variable. Variable you can overpay as much as you want. Fixed you can usually only overpay about 10%. You can also split your mortgage between variable and fixed. Your loan to value is 75% (150k * 100 / 200k = 75%). That is important for various LTV bands or variable rate mortgages.

Running your numbers, you can get AIB 2.95% variable, which allows you to overpay whatever you want, and it will drop your repayments by about E60 per month.

See https://www.askaboutmoney.com/threads/best-mortgage-deal-when-overpaying.207445/ for fixed vs variable and overpaying.
See [broken link removed] for comparisons of various mortgages.
 
Spoke with EBS (about my own mortgage) last week: they will not fix part of the mortgage and have the rest on variable. It's all or nothing.
 
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Gordanus said:
Spoke with EBS (about my own mortgage) last week: they will not fix part of the mortgage and have the rest on variable. It's all or nothing.
Click to expand...

Maybe double-check this with them - it says on their website that they allow it:
"... EBS provide the option of splitting the loan amount in two, so you can avail of both the variable interest rate on a portion of the loan and a fixed interest rate on the remaining portion of the loan."​
https://www.ebs.ie/mortgages/mortgage-interest-rates
 
I enquired about splitting my mortgage when they dropped their fixed rates last year. I to was told it's all or nothing. Presume if you push you might get something but I figured that effort was better spent switching provider.
 
cpt_boom said:
Maybe double-check this with them - it says on their website that they allow it:
"... EBS provide the option of splitting the loan amount in two, so you can avail of both the variable interest rate on a portion of the loan and a fixed interest rate on the remaining portion of the loan."​
https://www.ebs.ie/mortgages/mortgage-interest-rates
Click to expand...

Well, that's interesting... you'd think they'd know their own policies. Thanks for that.
 
cpt_boom said:
Maybe double-check this with them - it says on their website that they allow it:
"... EBS provide the option of splitting the loan amount in two, so you can avail of both the variable interest rate on a portion of the loan and a fixed interest rate on the remaining portion of the loan."​
https://www.ebs.ie/mortgages/mortgage-interest-rates
Click to expand...

Hah! This only applies to NEW mortgages, not existing mortgages.
 
Gordanus said:
Hah! This only applies to NEW mortgages, not existing mortgages.
Click to expand...
That's annoying - I imagine it's a system issue as much as anything else. I have AIP for a new mortgage with EBS and was told that although you can't overpay on a fixed rate, it's easy to re-extend the term if you shortened it to increase payments. Not sure I'd trust this remaining the case into the future, though.
 
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