Key Post I managed to switch from Pepper before they increased my rate to 6.5%!

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orwell

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Current lender: Pepper
Outstanding mortgage balance: €190000
Approximate value of your property: €400000
The date you started your fixed-rate… not fixed
How many years you fixed for: N/A
Your current mortgage interest rate: 4.69%
Your current monthly repayment: €1500
Your property's BER: B3 (we think)
Are you due to get extra cashback from your current lender in the future: No
Left on mortgage: 15 years

Hi,
We are looking to switch mortgage, have all paper work sorted and ready to go, (just waiting on Ber this week)
We have been looking at Avant mortgage but see the rates are gone up, still a lot better than what we are on!
Looking also at Perm TSB or Aib green mortgage..
Really hoping to get off our Pepper mortgage as quick as we can and fix for 4/5
Any words of advice for who best option is currently??
We are PTSB bank holders, personal and business If that makes their application any easier
Thanks in advance
 
orwell said:
Current lender: Pepper
Outstanding mortgage balance: €190000
Approximate value of your property: €400000
The date you started your fixed-rate… not fixed
How many years you fixed for: N/A
Your current mortgage interest rate: 4.69%
Your current monthly repayment: €1500
Your property's BER: B3 (we think)
Are you due to get extra cashback from your current lender in the future: No
Click to expand...
@orwell Because you are on a variable-rate mortgage, you do not have to pay a break fee.
  • Switching immediately to Haven's 4-year green fixed rate (2.0% with €2,000 cashback) will save you about €19,200 over the next 4 years
    • But you will need a BER of B3 or better to be eligible for this rate, and the savings estimate does not account for the cost of a BER assessment (possibly €150 to €250)

  • Switching immediately to AIB's 5-year green fixed rate (2.1% with €2,000 cashback) will save you about €18,520 over the next 4 years
    • And it is quite likely that you will be able to make unlimited overpayments without penalty for the foreseeable future (see this thread)
    • But you will need a BER of B3 or better to be eligible for this rate, and the savings estimate does not account for the cost of a BER assessment (possibly €150 to €250)

  • Switching immediately to AIB's 5-year fixed rate (2.35% with €2,000 cashback) will save you about €16,820 over the next 4 years

  • Switching immediately to Haven's 7-year fixed rate (2.65% with €2,000 cashback) will save you about €14,760 over the next 4 years – but with the longer security of 7 years on a fixed rate

  • Switching immediately to Avant Money's 4-year fixed rate (2.45% with no cashback) will save you about €14,100 over the next 4 years

  • Switching immediately to Haven's 10-year fixed rate (2.85% with €2,000 cashback) will save you about €13,380 over the next 4 years – but with the longer security of 10 years on a fixed rate

  • Switching immediately to Avant Money's 5-year fixed rate (2.65% with no cashback) will save you about €12,720 over the next 4 years

  • Switching immediately to AIB's 7-year fixed rate (2.95% with €2,000 cashback) will save you about €12,700 over the next 4 years – but with the longer security of 7 years on a fixed rate

  • Switching immediately to Finance Ireland's 10- or 15-year fixed rate (2.9% with no cashback) will save you about €11,000 over the next 4 years – but with the longer security of 10 or 15 years on a fixed rate
    • This product has a benefit in relation to moving home in the future that is explained below

  • Switching immediately to Avant Money's 7-year fixed rate (2.95% with no cashback) will save you about €10,660 over the next 4 years – but with the longer security of 7 years on a fixed rate

  • Switching immediately to Avant Money's 10-year fixed rate (3.4% with no cashback) will save you about €7,540 over the next 4 years – but with the longer security of 10 years on a fixed rate

  • Switching immediately to Avant Money's "One Mortgage" (a 3.4% fixed rate with no cashback) will save you about €7,540 over the next 4 years – and the interest rate will remain fixed for the remainder of your mortgage term (approximately 15 years)

The above Avant rates include their rate increases of 15 August 2022. While Avant's rates are not the lowest at present, it is possible that they will be amongst the lowest in the near future when other lenders increase their rates.

These savings estimates use for comparison the scenario of staying on the variable rate with your current lender and assume that that rate doesn't change between now and August 2026 (which is very unlikely). The estimates also account for any fees (solicitors' fees, valuation fee) that you have to pay and any cashback offered by the above lenders.

All of Avant's rates, and Finance Ireland's 10-year and longer fixed rates, allow you to avoid any potential break fee if you move home in the future (as long as you take out a new mortgage with them, and subject to certain conditions). And in the case of Finance Ireland you can "take your mortgage with you" – meaning that you get to keep the same interest rate when you move (provided that at least 3 years have passed since you started the Finance Ireland fixed rate and subject to certain other conditions).

The estimates also assume that your loan-to-value ratio (LTV) really is below 50% in order to be eligible for the AIB rates listed above. (You are already eligible, from an LTV perspective, for all of the other listed rates.) Your LTV estimate is 190.0k/400.0k = 47.5%. If you get a valuation of less than €380k, you will need to make a few more monthly mortgage payments and/or a lump sum overpayment to get the LTV below 50%. But that is not a reason to delay the switch – i.e., you can start the switch immediately.

Bear in mind that interest rates could rise between now and the time that you complete any switch, so if you are thinking of switching you should apply simultaneously to two or more lenders for approval in principle (AIP).

If you use a broker and they tell you that your mortgage balance is too low to switch, find another broker.

It will probably be impossible to switch if your mortgage is in arrears or if you have a bad credit record. Please also review this list of other reasons that may prevent you from switching and see if any of them apply to you.
 
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Paul F said:
@orwell Because you are on a variable-rate mortgage, you do not have to pay a break fee.
  • Switching immediately to Haven's 4-year green fixed rate (2.0% with €2,000 cashback) will save you about €19,200 over the next 4 years
    • But you will need a BER of B3 or better to be eligible for this rate, and the savings estimate does not account for the cost of a BER assessment (possibly €150 to €250)

  • Switching immediately to AIB's 5-year green fixed rate (2.1% with €2,000 cashback) will save you about €18,520 over the next 4 years
    • And it is quite likely that you will be able to make unlimited overpayments without penalty for the foreseeable future (see this thread)
    • But you will need a BER of B3 or better to be eligible for this rate, and the savings estimate does not account for the cost of a BER assessment (possibly €150 to €250)

  • Switching immediately to AIB's 5-year fixed rate (2.35% with €2,000 cashback) will save you about €16,820 over the next 4 years

  • Switching immediately to Haven's 7-year fixed rate (2.65% with €2,000 cashback) will save you about €14,760 over the next 4 years – but with the longer security of 7 years on a fixed rate

  • Switching immediately to Avant Money's 4-year fixed rate (2.45% with no cashback) will save you about €14,100 over the next 4 years

  • Switching immediately to Haven's 10-year fixed rate (2.85% with €2,000 cashback) will save you about €13,380 over the next 4 years – but with the longer security of 10 years on a fixed rate

  • Switching immediately to Avant Money's 5-year fixed rate (2.65% with no cashback) will save you about €12,720 over the next 4 years

  • Switching immediately to AIB's 7-year fixed rate (2.95% with €2,000 cashback) will save you about €12,700 over the next 4 years – but with the longer security of 7 years on a fixed rate

  • Switching immediately to Finance Ireland's 10- or 15-year fixed rate (2.9% with no cashback) will save you about €11,000 over the next 4 years – but with the longer security of 10 or 15 years on a fixed rate
    • This product has a benefit in relation to moving home in the future that is explained below

  • Switching immediately to Avant Money's 7-year fixed rate (2.95% with no cashback) will save you about €10,660 over the next 4 years – but with the longer security of 7 years on a fixed rate

  • Switching immediately to Avant Money's 10-year fixed rate (3.4% with no cashback) will save you about €7,540 over the next 4 years – but with the longer security of 10 years on a fixed rate

  • Switching immediately to Avant Money's "One Mortgage" (a 3.4% fixed rate with no cashback) will save you about €7,540 over the next 4 years – and the interest rate will remain fixed for the remainder of your mortgage term (approximately 15 years)

The above Avant rates include their rate increases of 15 August 2022. While Avant's rates are not the lowest at present, it is possible that they will be amongst the lowest in the near future when other lenders increase their rates.

These savings estimates use for comparison the scenario of staying on the variable rate with your current lender and assume that that rate doesn't change between now and August 2026 (which is very unlikely). The estimates also account for any fees (solicitors' fees, valuation fee) that you have to pay and any cashback offered by the above lenders.

All of Avant's rates, and Finance Ireland's 10-year and longer fixed rates, allow you to avoid any potential break fee if you move home in the future (as long as you take out a new mortgage with them, and subject to certain conditions). And in the case of Finance Ireland you can "take your mortgage with you" – meaning that you get to keep the same interest rate when you move (provided that at least 3 years have passed since you started the Finance Ireland fixed rate and subject to certain other conditions).

The estimates also assume that your loan-to-value ratio (LTV) really is below 50% in order to be eligible for the AIB rates listed above. (You are already eligible, from an LTV perspective, for all of the other listed rates.) Your LTV estimate is 190.0k/400.0k = 47.5%. If you get a valuation of less than €380k, you will need to make a few more monthly mortgage payments and/or a lump sum overpayment to get the LTV below 50%. But that is not a reason to delay the switch – i.e., you can start the switch immediately.

Bear in mind that interest rates could rise between now and the time that you complete any switch, so if you are thinking of switching you should apply simultaneously to two or more lenders for approval in principle (AIP).

If you use a broker and they tell you that your mortgage balance is too low to switch, find another broker.

It will probably be impossible to switch if your mortgage is in arrears or if you have a bad credit record. Please also review this list of other reasons that may prevent you from switching and see if any of them apply to you.
Click to expand...
Thanks a million for that Paul, can I ask one more question, you might know
How many years of chapter 4 and form 11 do AIB look for.. my husband was self employed as sole trader and went limited company so we have 2 full
Years of each which is enough for Avant, I think haven is 3 years so I’m presuming AIB are the same?
If so il
Go with Avant and fix for 3 years..
atill
Making a great saving
All
Our finances are good to
Go etc no bad ratings etc
(Had one bad loan 15 years ago for original
Mortgage and never got found to switching until now!)
 
orwell said:
Thanks a million for that Paul, can I ask one more question, you might know
How many years of chapter 4 and form 11 do AIB look for.. my husband was self employed as sole trader and went limited company so we have 2 full
Years of each which is enough for Avant, I think haven is 3 years so I’m presuming AIB are the same?
If so il
Go with Avant and fix for 3 years..
atill
Making a great saving
All
Our finances are good to
Go etc no bad ratings etc
(Had one bad loan 15 years ago for original
Mortgage and never got found to switching until now!)
Click to expand...
No idea, sorry. Consider posting a new thread with your questions in this forum.
 
Can I ask, my mortgage application with AIB has gone to one of their home advisors, who are doing the full assessment, do they approve the mortgage in principal at that stage? And is it the 3-5 working days or longer?
Thanks in advance
Over 15 years since we got this mortgage and unsure as it’s our first time to switch!!
 
My loan offer arrived in the post today and to solicitors…it’s be a rush in 4 weeks????
Can’t bring my mortgage protection so have to get new policy, insurers writing to the doctors, I have a friend secretary in there who’s going to keep an eye and get it completed… but am I clutching at straws here?
Do the mortgage deeds have to come from original mortgage to solicitor.. pepper!!!!
 
My solicitor has written to Peoper and my redemption fee arrived today.. to be honest even with the interest rate increaseof 0.5, I’ll be 2.6% on 5 year fixed.
Compared to the 4.74 with pepper which is going up to 5.99!!
I’m just relieved I’m approved with AIB
 
Just updating that we drew down from AIB last Tuesday .. because we had all our documentation and the request for funds in the week before, we were got the older rate of 2.1% fixed for 5 years so we are thrilled..
we came from pepper , and had received the letter Friday stating that the pepper mortgage was going up to 6.5%
So was even more thrilled to know we are back with main stream lender

Special thanks to Paul F for his help on the switcher quotes
 
@orwell Would you mind explaining a bit about how you ended up with Pepper and what you did that allowed you to leave them?
 
No problem Paul
We bought this house in 2007, we were yoing and naïve.. we were refused mortgage from main steam bank as my husband had a bad credit rating from few years previous for car loan, it was load off as far as I remember but still showing on the report.

Mortgage broker suggested a mortgage with GE Money, saying we could switch back in few years when credit report returned to normal
So we took the mortgage out..we applied to Halifax at one stage to switch but were denied as my husband was self employed, although I’m staff nurse in Hse
Anyway stupidly really we didn’t do anything more over the years.

Dh went from sole trader to limited company 3 years ago and our current accountant was brilliant (we had a bad one for years , I think when banks saw his name that put them off. He has since served jail time)

Anyway we got our two year sets of accounts, had good savings record etc etc
We went back to original broker in June who applied to Avant for us.. again I think we were unlucky with broker as he dragged his heals and didn’t actually apply until august for us..
I myself applied online To AIB and they called me on 27/8 and we started the ball rolling..

Mortgage broker called me in September to say Avant declined us as they weren’t happy with level of income .. I asked about PTSB and he said they wouldn’t look at us and Fb company had availed of the TWSS.. I didn’t tell him that I had applied to AIB
He suggested finanace Ireland so I let him on

I proceeded with AIB and I also applied to PTSB myself and had approval in principle while going through drawdown with AIB..

And the rest I have in the above post..
 
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Sorry that’s all long winded ..

We had good finances the last 8/10 years, we copped on
We have weekly saving going to credit union, kept accounts good. Never overdrawn and we have good loan to Value

I would recommend if you can find a reallly really good broker, maybe someone here recommends someone or else apply yourself
I have to say I found AiB excellent, they were really efficient and were more than pleasant , even we had to call into branch to verify identity
So If I was in any financial difficulty I would suggest going through the actual branch itself as they are very good and probably have seen people worse off

I feel so sorry for the posters here that are stuck with Pepper … it’s extortionate
And when I look back now we were so used to paying 1500 Pm as that was normal interest rate in 2007/2008 and we just never changed.. until now
 
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Oh and as we were switchers we didn’t need quite as much documentation
It was 2 years for the company’s documentation. Form 11’s , bank statements
And I think it was 6 months bank statements from personal accounts..
but PTSB asked for lots more than AIB and AIB were my preference
We also got a BER done as we thought we would be b3 as we did an extension a few years ago and had loads of insulation, had gotten stove instead of fire and new front door and we came out as B2 in the BER
 
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orwell said:
I would recommend if you can find a reallly really good broker, maybe someone here recommends someone or else apply yourself
Click to expand...

Hi Orwell

The problem is finding a really good broker who is not too busy and who is interested in your case.

It seems to me that you handled your own case best of all - directly with AIB and with ptsb. You got approval from ptsb despite the broker telling you that they would not touch you.

Brendan
 
And he never even mentioned AIB to me.. he came back a few weeks ago, via email, after all the interest hikes to tell me about the i teeter hikes and that FI were no longer best option and then mentioned Haven

I have honestly learned so much since august about mortgages, predatory Lending and life insurances etc from this site that I hadn’t a clue about and I’m mid 40s

So a big thanks to all who run this site and contribute so we can all learn and apply our knowledge to our own cases
 
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