Considering switching to BoI - does it make sense?

ysenrab

Registered User
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I have €134,000 remaining on my mortgage, with 26yrs remaining. Monthly repayments are €630 currently - with AIB on a SVR (discontinued) of 3.4%. I think my LVR would be somewhere in the region of 65 - 70% given a recent sale of a nearby similar property, but obviously would need a valuation.

BoI are offering 2% cashback and 3% fixed for 3yrs. With this rate I think I would be saving in the region of €30 a month and on the fixed rate they also allow you to overpay up to 10% or €65, so i could continue to pay at my current repayment level as well.

One thing I have always liked about AIB is that they treat new and old customers the same in terms of new rates etc. However I guess after the three years were up, I could switch again as hopefully I'll continue to be a good place with the LVR.

Another thing is at some stage I would possibly look at a top up loan so I could do some renovations (new kitchen, knock out a wall, redo bathroom etc). I'd like it if that was within three yrs from now, but it may not be. If this does happen within the three yrs, is it possible on a fixed rate or not?

Finally, if I switch, does my mortgage protection just move over, or do I need new quotes etc?

Have I got my calculations correct and does it make sense for me to look at switching?
 
Re calculations, I'd look at the interest you're saving, rather than the repayment amount. 134000*0.4% is saving 44.66 per month, or 536 per year. A lot of your cashback will be eaten up by legal fees.

You can shorten the term if you like and repay by more than the 10% as a result.

A top-up would be treated as a separate mortgage amount, so whether the main loan is fixed or variable doesn't really matter. What matters is whether or not the particular bank will provide a top-up when you need it.

For mortgage protection, if not increasing either the amount or term you can keep policy and just change bank name. However might be worth checking for new quotes to see if you can save anything.

Before you decide, will AIB let you move from SVR to LTV rates? My understanding is you can, and they were in fact actively writing to customers to inform them they could. I think rate would only reduce to 3.3%, but you could do that immediately while going through application process with BoI and making your final decision.
 
I have spoken to my solicitor and fees and charges (land registry etc) comes to just under €1100, so not too bad.

I will find out if AIB will let me move to a LVR rate as well. Thanks also for answering the other questions.
 
Does boi have a limit on how low the mortgage amount is? It may have to be over a certain amount.
 
Does boi have a limit on how low the mortgage amount is? It may have to be over a certain amount.

They don't appear to for the switching product. I spoke to them today and she ran preliminary figures through the computer and it was fine. I have an appt booked next week to do the formal application.
 
Do you need to switch current a.c. to BOI in order to avail of 2% cashback and 3% fixed rate? currently with Kbc for all mortgage and current a.c. but just want to switch mortgage and take 2% and keep current a.c. with Kbc. Also any ideas of rough estimate of legal fees to switch. Just drewdown 2 years on new build so straight forward switch. Mortgage of 250k
 
Do you need to switch current a.c. to BOI in order to avail of 2% cashback and 3% fixed rate? currently with Kbc for all mortgage and current a.c. but just want to switch mortgage and take 2% and keep current a.c. with Kbc. Also any ideas of rough estimate of legal fees to switch. Just drewdown 2 years on new build so straight forward switch. Mortgage of 250k
 
Does anyone think bank of Ireland will reduce their fixed rates for existing customers in next few months on foot of esb/aib doing so. Currently coming to the end of a 3.6% 2 year fixed with them and would like to stay with them if they reduce significantly. Tempted by Ulster banks 4 year fixed.
 
Just thought i would follow this up. I received approval in principal from BoI to switch, pending paperwork. In the meantime AIB reduced their rates and I was moved to a SVR of 3.15%. Their LVR for 50-80% was reduced to 2.95%. I got a valuation done (which I needed regardless) and fell comfortably into the 50-80% range as expected so decided to just switch to the LVR with AIB rather than moving completely to BoI. It did mean I missed out on the cashback offer, half of which would have been eaten up in solicitor fees, but I'm happy to stay with AIB at that lower rate and not having the hassle of switching.
 
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