Salary high enough to transfer mortgage?

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GabbaGabbaHey

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Hi,

I'm looking for some advice and hope you guys can help me.

My home has a market value of €200,000 and I have €125,000 outstanding on my mortgage. I have no other loans or borrowings and have €3000 on deposit in a "rainy day" fund and a further €4000 in shares.

The mortgage is a variable rate and is currently at 4.1% with BOI. Looking at the Best Buys that seems a bit high and I'd like to move .

I'd like to know :
1) Are the rates in the Best Buys list introductory rates. Will they increase after a year?

2) My Salary is €25k p.a. . Would I have difficulty in transferring the mortgage as the mortgage would be 5 times my salary? I have held it for 3 years and have had no repayment problems to date.


Thanks in advance for any comments or suggestions.
 
Are you sure about the rate you're paying?

[broken link removed]
According to this, it's hard to believe you're on a variable rate with them of 4.1%. Could you check and get back to us? Are you sure you're not on a fixed rate?
 
Hi Oysterman,

Thanks for responding. I was on a fixed rate for the first year and was under the impression that this would automatically change to variable after the year was up. The last time I checked, about a month ago I was told I was on 4.1%. I'll give them a call tomorrow to confirm this.
 
Okay,

I rang up their mortgages section and they confirmed a) I'm on a variable rate and b) It is currently 4.1% .

Definitely not the rate quoted in your link! Any advice on where to go from here?
 
Hi,

You could transfer to Ulster Bank's tracker mortgage at 3.15% (or 2.95% if your loan to value is 60% or below) and they will cover all the costs involved (legal fees, outlays and valuation). This is based on the assumption that you are under age 35 and your property has more than one bedroom.

Kind regards,

Sarah


www.rea.ie
 
the NIB will beat the UBs tracker rate, its 2.74. They also provide free banking if you are switching mortgages. I know this as I am in the process of switching from BOI too.

They pay 600e towards your legal fees also. UB doesnt offer free banking and their rates are higher.
 
I didn't realise this post was going & started a new one wondering about Ulster Bank switcher service. I'm with BOI & want to escape them - we made the mistake of going part variable, part fixed & are really getting screwed for the fixed part. We're going to have to pay them a few grand to get out of this but have worked out that it's worth it.

I was leaning towards Ulster Bank as they paid the legal fees but is it true you've got to be less than 35 for this?

Also, I didn't realise NIB would pay €600 towards legal fees. Would it be likely to cost alot more than this to switch?

Lucy
 
Ask them why you're on such a high variable rate. Unless they can point to an agreement you signed up to I'd look for a refund of your overpayments. Demand an immediate reduction to the standard "standard" variable rate.
 
It shouldnt cost much more, it depends on how good you can negotiate with your Solicitor!! or find a new one!!
 
Thanks all for your advice.

Sarah\emnc,

I will check those out. The free banking would certainly come in handy as well. My main concern would be that the mortgage would be 5 times my salary and they may be reluctant due to that.

Repaymentator,

I don't recall signing anything after the original mortgage was taken out. I'll be looking to get it reduced now. Would they refund the difference between this rate and the standard? Should the onus not have been on me to monitor this more carefully?
 
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