Switching mortgages during the purchasing process.

[labhaoise23]

We have mortgage approval with AIB and had found a house to buy and started the process of purchasing the house. All we have done is had the loan sanctioned. However, now we would get a better rate with KBC Bank but can we change?

 

[ClubMan]

Almost certainly you are not locked in to drawing the money down from AIB (if in doubt ask your solicitor) so I can see no reason for you not to check out KBC.
Bear in mind that KBC have a reputation of luring customers in on low rates but then treating existing customers worse than new customers when rates go lower.

 

[Generic Name]

We were in a similar position last year with a new build. We had a Sanction in Principle from AIB when we put down a deposit on a house but subsequently went forward with a mortgage from KBC when it came time to sign the contract. I believe that right up until you close you may switch mortgage provider, assuming you are funding any deposit yourself (confirm this with your solicitor to be 100%).

Bear in mind that KBC have a reputation of luring customers in on low rates but then treating existing customers worse than new customers when rates go lower.

I would second this! We are actually in that situation now whereby new KBC customers today receive a lower rate on the same LTV mortgage product that we drew down just 11 months ago, while we remain on our initial higher rate. Had we went forward with AIB our rate would have reduced 3 times over that period, ultimately leaving us .24% lower than what we are paying today. This is obviously in relation to a variable rate mortgage and equally I guess the AIB rate could have went the other way but the point is that they have passed on the reductions to all.

Also bare in mind that the rates quoted on the AIB website today do not reflect the latest rate reductions that they announced last week, so be sure to compare any KBC rate today with AIB's latest reduced rates.

Finally, when we said to AIB that we were going with KBC they were able to offer us a better deal (unfortunately it still didn't beat KBC's rate at that time) than what they had advertised so this may also be an option for you depending on circumstances.

Best of luck with it.

GN