All that hassle for €16 a month???Hi
Please bear with me, I need help from those in the know.
Our situation is this;
Fixed rate (PTSB) ended in Dec, and now at 4.8%.
We would qualify for the NIB loan to value mtg, at a rate of 4.5%.
Doing the sums and talking to NIB rep, we would make a saving of something like €16 per month on repayments. (factoring in TRS)
To switch it would cost us approx solr fees and valuation fee total; 930 minus refund from NIB 600 = 330.
We could use NIB legal team but in not so many words were discouraged from doing so as they are very very slow, by NIB rep.
I would prefer to use my own solr anyway, long time contact/friend etc.
When we met with NIB rep, I was never less sold a financial product in my life. It was almost as if she was discouraging us from going ahead.
Very confusing and not at all expected.
We would also have to open an account with NIB, arrange for the salary to go into it. It is not compulsory but rep told us that as the whole switching thing had kind of backfired on NIB as in they had loads of mortgage switchers but no account take up, they now would look most favourably and move quickly on new account holders as well.
So why are we so slow to change?
Are we stupid to not switch now while the offer still stands.
Other little things....
EddieHobbs referenced the NIB ltv mortgage about four times in Jan mag, this got me thinking.
The NIB branch that would be our local one was as quiet as could be when we visited, we thought it was closed or had skeleton lunchtime staff, however lunchtime came and went and there wasn't a rush of anyone anywhere. Never been in a bank so quiet.
If they did relocate from nearby town, would we be in a quandry down the line if no real life branch?
Finally, NIB rep said we would be tied in for lifetime of the mortgage if we do switch, (17yrs), and in the future if they hike up the interest we would be unable to get out of it.
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.
To switch or not to switch ..that is the question????
Thanks for reading.
Would you not be better off paying the TRS refunds off the capital immediately as part of an accelerated capital repayment strategy? If you do this then agree it with the lender first and don't just lodge additional amounts to the mortgage account unilaterally and without specifying that you want them paid off the capital.I've let my TRS refunds build up in that a/c over the last two years which will take some of the sting out of the increase in payments when I come off the fixed rate next month.
5 years is max that I've heard. Other than very long term fixed rates I've never heard of longer lock ins or penalties for moving before some period is up.There was no tie-in period when I switched but make sure you read the small print on your offer to make sure that they haven't changed that. Having said that I have heard of up to 5-year tie-ins with some mortgage products but I have never heard of anyone tied in for the entire duration of a 20 or 25 year mortgage
So what's wrong with you having €16 p/mth available to save for 17 yearsAll that hassle for €16 a month???
In the longterm I know I would be better off just paying it off the capital. However we are on a fixed rate which doesn't allow us to pay off extra capital at the moment. That will end next month though and I'll have to have think about the best option.Would you not be better off paying the TRS refunds off the capital immediately as part of an accelerated capital repayment strategy? If you do this then agree it with the lender first and don't just lodge additional amounts to the mortgage account unilaterally and without specifying that you want them paid off the capital.
Why you need to change your insurance policy if you are not increasing the mortgage? If you are on a good deal then you should keep that policy in place and simply change the interested party on the policy...On the Mtg protection life ins, I am already getting good enough quotes for that, so all is in favour there.