gnf_ireland
Registered User
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- 1,441
I suppose it really depends on the outstanding amount and term.
So the only real cost is your time and effort.
And realistically, while it's a slow teeeeeedious process it doesn't cost you much time.
Most people do their calculations on "how much will I save over 20 years?" That is not the way to look at it, as you can review the decision every year or two.
I am thinking maybe higher than 5 hours to be honest. Maybe if you have all your business, including savings, with a single bank - but I imagine most people have some level of distribution of assets (I hope!!)But maybe 5 hours is about right.
I am guessing that once someone commences the switching initiative, they either switch, get a new rate from their bank or find out they cannot switched. These are not the people any campaign needs to focus on - its the ones who never even consider switching in the first instance.So the switching campaign should focus on the 5 hours and not the two months.
I am thinking maybe higher than 5 hours to be honest. Maybe if you have all your business, including savings, with a single bank - but I imagine most people have some level of distribution of assets (I hope!!)
Also, I would hope people would invest more than 5 hours in a decision as big as this - we are talking hundreds of thousands of euro in most cases.
Hell, it would take more than 5 hours to read half the comments on this forum alone
Let's not underestimate how boring it is too. Bank meetings, phone calls, paperwork - throw in a fulltime job, a couple of kids etc. I see why people dont do it.
I am currently in the process of my second switch in 2.5 years - first switch from UB (4.1%) to KBC (3.55%) and am currently starting the process of switching to AIB (3.1%).
@Brendan Burgess I think you know the answer to that oneCan I ask why?
Hi Brendan - I am leaving KBC because I switched to them under the impression I was getting a variable rate but in reality, am on a fixed rate of 3.55%. They have advised that they have no plans at present to reduce their rates for existing customers. It hasn't cost me anything to switch to date and I don't expect the switch to AIB to cost me anything either.Hi Switchornot
It's very interesting that you switched to KBC and now have switched again.
Can I ask why?
Can you tell us how hard or how easy it was?
Brendan
Hi gnf_ireland - yes, I switched sometime around June 2015 when the rate was 3.55%.(I only took out the mortgage with UB 2.5 years ago so I suppose this is really 2nd switch in 12 months!).Hi Switchornot - just to confirm the dates of the switches. I assume that to get the 3.55% rate with KBC you switched between say October 2014 and September 2015? I think the KBC rate before October was 3.65% and after September 2015 it dropped to around 3.5% or 3.45% if memory serves me correctly. I switched in May 2015 and am on the 3.55% rate
I see you have said you have started the switching process to AIB - you are quick off the mark given it was only announced on Monday - fair play to you. Have you contacted KBC to see if they will budge at all, or have you decided you are going to switch no matter what? Have AIB confirmed to you any rules around the 2k professional fees and any associated claw-back on that if you switch again within x period?
BTW, I fully agree with paying the same amount and reducing the term of the mortgage. As you can see from some of my posts I am pursuing an aggressive overpayment strategy at the moment myself - with the aim of reducing the term dramatically !
@Brendan Burgess I think you know the answer to that oneI think you have a thread somewhere asking people who switched to KBC if they would switch away from them again based on recent events !
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