In middle of switching then AIB lowered rates. Advice please.

Discussion in 'The Switchers' Forum' started by monkey80, 13 Apr 2019 at 4:00 PM.

  1. monkey80

    monkey80 Registered User

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    Last edited: 13 Apr 2019 at 4:21 PM
    I am currently with AIB 3.15 variable 234,000 left outstanding.

    I have handed all my paperwork into EBS and was going to swtich to them for 5 years at 3.0% with 2% cashback, then an extra 1% after the 5 years. (I wanted to fix for a while, but AIBs rates were poor and the cash back clinched it for me)

    My solicitor just wrote to me saying that they have recieved the title deeds from AIB and are awaiting my Letter of Loan Offer from EBS.

    Then I find out yesterday AIB are lowering their fixed rates to 2.85%.

    I'm pretty poor at maths, could some one work out for me please is it still worth going through with the switch? Or should I fix with AIB?

    Also, is my solicitor likely to charge me anything significant? I've only recieved 2 letters from him.

    Thanks in advance.
     
    Last edited: 13 Apr 2019 at 4:21 PM
  2. Brendan Burgess

    Brendan Burgess Founder

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    37,014
    The difference is 0.15% a year. (3% - 2.85%)
    So you will pay the EBS an extra .75% in interest over 5 years.

    But you will get 3% from EBS in cash back so the net advantage is 2.25%

    So you save 2.25% of €234k or around €5,200

    So as long as the solicitor charges less than €5,200 , it's worth swtiching.

    Brendan
     
  3. Dauhee

    Dauhee Frequent Poster

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    96
    then switch to BOI, then switch to KBC, then switch to UB - switching based on duration they require with previous lender, need to be 24 months for PTSB to consider I believe. Main thing is, keep switching. Penalty from breaking out of 1 year fixed is low to nothing in current market.

    And pay off any cashback you get back onto mortgage. (warning, crude figures to follow) for example paying 5,000Eur off fixed mortgage could have penalty of between 0-5Eur, but start saving you extra 10Eur every month

    Main thing is, keep switching.
     
  4. monkey80

    monkey80 Registered User

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    10
    Thanks for the replys. If I decide to switch again after a year, are the breakage cost dependent on how long I decided to fix for?
     
  5. Dauhee

    Dauhee Frequent Poster

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    96
    many banks require you to be 6 months only with current lender, so you should begin plans to move in a few months. redonion on here can confirm but I believe length of fixed term is part of the calculation - the actual figure can can change on a daily basis
     
  6. Sean Og

    Sean Og Frequent Poster

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    128
    Please read my posts on the multi switch options. You are in a great position to get thousands of €€€ in cash backs.
     
    Dauhee likes this.