Should I switch from Bank of Ireland or fix?

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lotus17

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I took out a 30 year mortgage with Bank Of Ireland in Dec 2012. I have 4.5 years repayments made. The balance owed is about €250K and the loan to value ratio is less than 50% as the house is worth about €550K.
I am currently on a fixed rate of 3.6% and this is due to expire next week. My repayments are currently €1284 per month. BOI have offered me the following:

Variable LTV less than/equal to 60% - 3.9%
1 year fixed less than/equal to 60% - 3.2%
2 year fixed less than/equal to 60% -3.0%
3 year fixed less than/equal to 60% - 3.0%
5 year fixed less than/equal to 60% - 3.2
10 year fixed less than/equal to 60% - 3.8

I am inclined to go with the 2 year fixed rate of 3.0% and then see where interst rates are at that stage. Is it possible to squeeze a better interst rate out of BOI?

However I see many thread here re switching. I called into EBS and they said I would have to make a full application but that they would probably offer me 3.3% variable and they would give me 2% cash back. This would come to about €5K and I assume to would probably cost around €2K in legal fees. EBS pointed out they have dropped their variable rate 4 times in the last year while the BOI variable is still high.

Is it worth changing? If I did, what is the likelehood of BOI taking me back again in maybe a year if I tried to avail of their switcher deal at that stage?
 
Firstly, well done in getting yourself into a <50% LTV position.
If you go to bonkers DOT ie/Money/Compare Mortgages section (Won't let me post the URL), you can see all rates and offers available to you based on a preference of fixed or variable.
I moved from BOI-KBC-AIB a few years back as they each wouldn't match the cheapest rate on the market.

The way I see it is, you have worked hard to get yourself to that position, the minimal admin involved in moving to an alternate bank is negligible to the savings that you would make in the long term of your mortgage.

UB, KBC and AIB are cheapest variable rates out there currently, KBC look to give a larger amount towards Legal Fees but most definitely do not treat their customers as fairly as AIB.

All things being equal, you can see from the website above that going with EBS on 3.3% vs AIB 3.1% variable over the remaining 25 year term would save you €12K and almost €20K respectively based on the rate you pay today.
That small % difference between EBS and AIB can mean a big saving in the bigger picture.

If it were me, I would move to AIB, take their €2k and overpay by the monthly saving you are making.
I imagine BOI would welcome you back with open arms in the future as you are a 'safe bet' with that LTV.

Best of luck.
 
Thanks for the reply Doorpep.

I notice Brendan has mentioned in another thread that AIB have had the cheapest variable rate for some time. I wonder would it be a good strategy for me to switch now to EBS to avail of the 2% cash back offer and then switch again in a few weeks to AIB to be with the bank that seems to treat mortgage customers the best? That way I should probably make maybe €3k net on the cashback offer with EBS - after legal fees etc are paid. And end up on a low interest rate with AIB.

Is this do-able? Might AIB be unwilling to take me on if they see I have changed already?
 
You should switch to a variable rate with EBS.

You could tell BoI that you are switching and insist on a lower variable rate. But even if they did offer it to you, you would have to keep an eye on them to see that they keep it down.

If you don't fancy switching and BoI won't bring down the variable rate, you should not fix for more than one year.

Brendan
 
Ive just received a call back from Bank Of Ireland Mortgages. The lowest variable they will offer me is 3.5%. I pushed for more and mentioned all the other main banks were offering me 3% or close to it variable but I was told by the offical BOI can do no more. The official suggested I go with the 1 year fixed rate of 3.2% or the 2 year fixed rate of 3%. Its frustrating Bank of Ireland have become so uncompetitive. Ive always been an excellent customer.
 
Today I had an appointment in EBS and have started the ball rolling re changing.
Not long after I left EBS I received a call back from BOI to say they can now offer me 3.3% variable. I have accepted this but think I will go through with the switch to EBS to avail of the 2% cash back anyway. This forum is most useful to empower individuals when dealing with the banks...thanks all!
 
Well done is right - We work too hard to earn a living to be complacent when it comes to one of our biggest outlays. Always helps to shop around and if your current bank won't do you the best deal, there is another one out there that will be only too glad to! Best of luck.
 
I have tried unsuccessfully in June and just now (today) to get BoI to lower the svr I'm currently on with them - we currently are on a 3.5% variable rate. Have been told that I'm already on a discounted svr and won't reduce it further even when I mentioned ebs/ aib of 3.3% / 3.1% and that I would switch. Also mentioned I'm aware that other customers are on a lower svr and that my ltv is less than 50% and am a long time customer. Does this mean that if you're already on a discounted rate you will not be eligible for further/future reductions? Disappointed
 
Just an update...I expect my mortgage will transfer to EBS this week. Nearly 3 months to change! It does take time. I will be starting on the 3.3% interest rate with EBS but plan to move to the 1 year fixed at 3.15% once the 1st month is up. I have only moved to EBS to claim the cashback. I will be on the move again as soon as I can. What is my best next move? I would like to be with AIB in the longer term as they seem to have the best rates. Would it be worth going to KBC 1st though to claim cashback? Would there be a reluctance by AIB to take me on if I have already made 2 or 3 moves?

This forum is excellent for empowering bank customers!
 
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