If the potential savings achievable by switching to a cheaper lender outweigh the possible switching costs (which some lenders will subsidise or subsume) then it makes sense to do so in my opinion. Is NIB the cheapest lender for your circumstances (e.g. LTV and mortgage amount)?To switch or not to switch ..that is the question????
From this and your other thread I take it that you're on a tight budget. If you know for sure that heading towards 5% would start putting you under financial pressure then it may well make sense to opt for the best fixed rate available for your circumstances for whatever period of time you think it will take to improve your financial/cashflow situation - also assuming that you won't need to move in that time since the fixed rate early breakage penalties may be significant.Just the prospect of mtg rising above the 4.8% fills me with some fear and I am wondering if we are foolish now to not avail of the 4.5% while it is there.
If you mean mortgage protection life assurance then don't confine yourself to banks for this. In fact you are probably more likely to get a better deal elsewhere (e.g. a discount online broker such as www.123.ie or www.labrokers.ie etc. - there are more so please check them all out!) and you can switch any time. Do a search for previous threads on this issue too.Having said that I think the Life policy premium would make up for any saving.
Might get a quote for that from NIB.
I am not sure if this is the case or rep speak - that you have to get a new policy. If you are increasing the amount you are borrowing then you need to have life insurance to cover the extra, but you should probably only get a top-up policy if your existing cover is at a good rate.Another point to note is that we would have to take up a new Life policy on the mortgage, as the one we have is with Irish Life, at what everyone tells me is a good premium. Even the NIB rep was surprised at what we were paying each month. We would have to get a new policy if we switched companies, and I am guessing that it would cost more than what we are paying now.
Fair play to you. A lesson to all those people who are too indolent to bother. Have you ever estimated the savings made by switching?dmittedly I have moved mortgages three times in eight years to avail of better offers and it's always been worthwhile.
All lenders grant owner occupier mortgage interest tax relief at source once you have claimed it from Revenue.Can I just ask re NIB, do they take tax relief at source on the monthly payment or how is it done with them. (With our ptsb mtg they take it from the montly payment before direct debit. Again this makes the amount easier on the eye and monthly pocket).
I didn't think that they could insist (e.g. financial product bundling is supposed to be illegal isn't it?)? But then again there are other examples of having to have an account with an institution in order to avail of some other product...Re salary, the rep didn't say we had to have it going into the nib ac but this was suggested strongly, "we would like to see the salary going in..." etc.
Haggle!!€1000 cashback sounds lovely, I think they must have changed that since? She told us it would be roughly €600 refund on solr fees.
Where lenders give cash back or subsidise/subsume remortgaging legal costs they may have a clause in the loan agreement requiring you to pay some or all of it back if you move from them within some period of time (e.g. 5 years).Also, are you tied in for the duration of the mortgage? No more switching allowed for you or did I misunderstand that part (can't rem if I read it or she said it)?
Definitely shop around for yourself or via a broker rather than expecting the lender to get you a good deal.Finally, I will get onto Irish Life re mortgage protection life assurance, I asked about this previously but will be more clear this time, just to be sure.
And can shop around also.
OK - I get you now (and you're not being stupid - maybe I am). I'm not sure if different lenders do it differently. I assumed that all did it monthly and just collected a direct debit net of the relief. But probably best to check with any specific lender - e.g. check the terms & conditions of the loan agreement or ask them.Anyway, re trs and please forgive me, this may be my stupidest moment yet on Askaboumoney...but I thought I read in a thread here a while ago that some trs is not taken before the mortgage repayment is debited from personal account.
I know all lenders grant it once it is claimed (we spent the first three yrs of this mortgage not claiming it!). I thought I read somewhere here that some financial institutions don't take it but put it into your ac at yr end or month end or some such thing?
Yes - except that the relief is given at source.Tax relief at source means tax relief is taken at source (ie financial institution?). Is this correct?
Do they charge your mortgage repayment by DD gross and then refund the tax relief or just charge the repayment net of relief? What do other lenders do does anybody know? My most recent mortgage repayment predated tax relief at source!2. NIB credit the TRS to my Easy current account on the same day as the mortgage is debited from my Easy current account.
I thought that it was the NIB sales person who said this!?4. I strongly disagree with you statement that the NIB legal team are very very slow.
Get answers to questions like this in writing and also check the terms & conditions of any agreement before signing it!5. I remember asking my NIB rep at least twice if I was tied in for any period and he said no . I must double check what it says in the contract.
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?