Switching mortgage providers

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mattym

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I currently have a mortgage with the EBS and want to fix it for 3 years but the rate that I’m being offered is 5.2%. I have seen that KBC are offering a 3 year fixed rate of 3.9% for new customers. Assuming that I tick all the necessary boxes, like not in negative equity and that I need less than 80% of my houses value, are there any other things I should look out for? Roughly what would it cost to make the move?
 
mattym,

KBC offer a legal fee contribution of €1000.

You would need to get the house valued, this would cost you €100.

Apart from that, it's quick and easy once you qualify and have the necessary documentation to hand.

If you are thinking of fixing you should consider the 5 year fixed at 4.5%

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Thanks Norfbank, Yes the 5 year 4.5% is very tempting, probably would go for it. Excuse my ignorance but is it just a case of dealing with KBC and EBS to change the mortgage? Would the €1000 contribution cover the switch? Nearly seems too good to be true when the ESB offered 5.65% for 5 years.
 
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@ Norfbank;Can I jump on the bandwagon ,I have tried to change providers ,am with PTSB,they offered me a fixed rate of 5.75% for 5 years.,which is just way too high,because a portion of my mortgage is on interest only, I have to stay with them.

I would love to move to a bank that offers 4.5% for 5 years,but it looks like Im stuck with them.
Are there any banks who will take on an interest only (portion) and the main mortgage is on variable?
 
mattym said:
I currently have a mortgage with the EBS and want to fix it for 3 years but the rate that I’m being offered is 5.2%. I have seen that KBC are offering a 3 year fixed rate of 3.9% for new customers. Assuming that I tick all the necessary boxes, like not in negative equity and that I need less than 80% of my houses value, are there any other things I should look out for? Roughly what would it cost to make the move?
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Just checking, but I presume you are not on a low-cost tracker?
 
No Brendan, i'm just on the standard variable rate mortgage. Also when i bought the house i was single but got married since. The house is only in my name, but would the fact that i'm married now have any effect?
 
mattym said:
Thanks Norfbank, Yes the 5 year 4.5% is very tempting, probably would go for it. Excuse my ignorance but is it just a case of dealing with KBC and EBS to change the mortgage? Would the €1000 contribution cover the switch? Nearly seems too good to be true when the ESB offered 5.65% for 5 years.
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You could deal with KBC direct or if you prefer you could use a broker. You could ask them to pay for your valuation so there will be no cost to you to switch.

You do not have to deal with EBS at all.

It is a good deal but it won't be around forever.
 
Not looking good unfortunately, i think that i'd need more than the 80% mortgage that KBC offer. With the approx value of the house i'd need at least 85%. Any other providers offering better rates to fix than the EBS?
 
again @NorfBank & others

we have a mortgage & top-up mortgage with PTSB which they refuse to combine into one. On residential variable rate of 4.19% on main mortgage & 3.69% variable on consolidation/2nd mortgage.

Have talked to AIB but they wont do anything in the "current economic climate"

We lengthened the term of one of the mortgages to free up a few bob but I am enquiring are there any better deals out there and how easy is it to switch.

I would like to know your thoughts/suggestions...

Thanks,
Pete
 
mattym said:
Not looking good unfortunately, i think that i'd need more than the 80% mortgage that KBC offer. With the approx value of the house i'd need at least 85%. Any other providers offering better rates to fix than the EBS?
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The dreaded Irish Nationwide might do it at 4.8% fixed for five years, but you'd pay your own legal fees and valuation.
 
PyritePete said:
again @NorfBank & others

we have a mortgage & top-up mortgage with PTSB which they refuse to combine into one. On residential variable rate of 4.19% on main mortgage & 3.69% variable on consolidation/2nd mortgage.

Have talked to AIB but they wont do anything in the "current economic climate"

We lengthened the term of one of the mortgages to free up a few bob but I am enquiring are there any better deals out there and how easy is it to switch.

I would like to know your thoughts/suggestions...

Thanks,
Pete
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As NorfBank mentioned above, KBC offer a €1,000 contribution towards the legal costs of switching. Their variable rate is 3.85% or you can choose fixed rates. Maximum 80% of property value (LTV). Lower variable and fixed rates available from other lenders depending on the LTV but you pay your own legals. You'd need to work out the potential saving based on the size of your own mortgage and LTV, or else get your broker to do it for you, to see if it makes sense.

Not difficult to switch once you qualify on income, have a clean credit record and good current account statements (no referral fees etc.)
 
thanks Liam,

total mortgages = 150K , value 450K approx ( will need evaluation) = LTV 33%.

Have thought of extending term of main mortgage also, should the need arise but would like just one combined loan if it makes financial sense.

Will speak to a broker. Clean record etc. Just hope my username/situation won't affect matters.

Thanks again..
 
PyritePete said:
thanks Liam,

total mortgages = 150K , value 450K approx ( will need evaluation) = LTV 33%.

Have thought of extending term of main mortgage also, should the need arise but would like just one combined loan if it makes financial sense.

Will speak to a broker. Clean record etc. Just hope my username/situation won't affect matters.

Thanks again..
Click to expand...

Remember that extending the term of a loan makes it dearer in the long run.

By your username I'm guessing you have a pyrite problem. (Should have been a detective, me. :D) Apologies if you've posted about this already in another area of AAM - I'm only a sporadic visitor these days. I haven't dealt with any mortgage applications for people with pyrite issues in their houses, but I'm guessing that the two possible implications would be insurance and valuation.

Do you currently have house insurance? Does the pyrite issue cause any grief at renewal? The other posssible implication would be the valuation - if the pyrite is a known issue in your estate, the valuer might put something on it in the report, as I guess it does affect saleability.
 
thanks again Detective :p Liam , to answer your questions

(1) yes we have house insurance but have got conflicting views on whether or not to inform insurance provider, because of what's going on with Menolly/Lagan court case/settlement... there shouldn't be any reason to inform insurance company if builder is forced to repair house. So I haven't mentioned to them as yet. Its up for renewal in a few weeks time. Doubt we will have a resolution by then.

(2) unfortunately there have been others affected with pyrite in our estate (but these have been rectified by the same builder as our house). Its pretty hard to try and hide what's going on.

Well, all we can do is speak to a broker and inform them of the situation and see how we get on.

Thanks,
Pete
 
are you sure there are banks out there that will allow you to switch mortgages, i was refused this morning by ulster bank, saying it was not their policy to take mortages from other provides in the current climate and would not process application application.
I am an EBS customer and thought their fixed rates were a bit high.

what are your feelings on the future interest rate hikes from ECB... to fix now for at 5.65% for 5 years, is this a goo deal?... current rate is 3.83, how long do you think it will be until interest rates reach 5.65%
 
dawnsurprise said:
to fix now for at 5.65% for 5 years, is this a goo deal?... current rate is 3.83, how long do you think it will be until interest rates reach 5.65%
Click to expand...

Yes, lenders are still accepting switchers.
5.65% is not a good deal.
You can fix elsewhere for 5 years at 4.5% (if your mortgage is less than 80% of your property value)

Nobody knows when or if rates will hit 5.65% - your guess is as good as any predictions you will find here.

Add 2% to your current repayments, if you can comfortably afford the new repayment then you may be better off holding out on the variable rate you have. If the increases overstretch you then you should consider fixing.


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