How long must you be with existing lender before switching to ICS?

[pumba]

Hi
I was just wondering if anybody has been in similiar scenario where they have switched to ICS very soon after switching to another provider. We recently switched to AIB variable 2.75% (LTV < 60%) for the ability to make overpayments, having just completed 1yr fixed rate with EBS , was with EBS for almost 2 years by the time the switch went through. We are currently 3 months with AIB. However despite what I thought was my extensive research, I wasn’t aware of ICS at the time of the switch and the fact that they offer 5 years fixed rate at 1.95% with ability to overpay 20% per year. I’m looking into making this switch now but just wondering do they require you be with current lender for a set amount of time. Obviously I could ask the agent who will be processing my application but didn’t want to go stirring up a hornets nest if I didn’t have to, just thought I’d ask here first to see if anybody knew. Thanks

 

[Fahrenheit]

Hi,

You'll need to be with your existing provider for at least six months before ICS will accept a switcher application so you've only 3 months to go before you are eligible.

Make sure your repayment capacity is adequately positioned in the months preceding the switch.
ICS requires repayment capacity to be evidenced at stressed rates.
If you were to switch say 200Ke to ICS over 25 yrs at 1.95% then this would cost 843e/pm.
At 3.95%(i.e. stressed rates), the repayment capacity requirement is 1050e/pm(even though the monthly cost would be 843e/pm).

This can be satisfied by showing what you've paid(plus overpaid) on your mortgage for the last six months plus whatever you've saved.

If you have a car loan are still short on repayment capacity then you can use your savings to clear the loan & this will count
towards repayment capacity - ICS won't consolidate car loans but will allow the clearing of a car loan(from your own sources) to count towards repayment capacity.


Best of luck!


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