Which lender to switch mortgage to?

Cathbarr

Registered User
Messages
11
Hi there,

We are currently looking into switching mortgage provider! We had a fixed mortgage with EBS for the past 9 years. Fixed term is up in April 2020! Our currently rate is 4.85%!!! We took a gamble and it didnt pay off! However I don't want to get caught again so looking for some advice on which bank to go to!

We bank with AIB and they have a 2000e cashback offer with free bank fees for life at the moment! It sounds very attractive. The variable rate is 2.75%. We have been saving money over the past 10 years so this our current plan:

We owe almost 20k to the credit union at a rate of 7.1%. Between now and april we are going to pay that off. This would mean we would have no other loans. I have about 500e of credit card currently but will clear them before we go for the mortgage. Husband has a car loan but that is also up in april so minimal amount owing on that! So hopefully all going well we will only have the mortgage left by April! We will owe around 108k on it by April and hopefully will have 8k left to round down the new mortgage to 100k. Hoping to borrow the money over 10 years and then overpay on it for as long as we can!

New mortgage payment will be higher but we will keep paying the credit union money to clear the mortgage. Our home is worth anywhere between 400-450k. We have 2 young kids and both work in PAYE jobs and will both be 35 our next birthdays so should meet approval criteria!

We have life cover separately.

My question is is there anything else I need to factor in? Should I shop around to other banks? Any advice would be appreciated!
 

username123

Frequent Poster
Messages
1,415
Do you want another fixed rate or a variable?

My question is is there anything else I need to factor in? Should I shop around to other banks? Any advice would be appreciated!
Yes, 100% shop around to all banks. With E108K outstanding its not really much of a difference of 2% cashback vs E2000 from AIB. KBC would give you E3000 cashback.


Your LTV is only about 25%, based on E420K and 108K outstanding - have you looked at the best buys thread for that LTV bracket? https://www.askaboutmoney.com/threads/best-buy-for-50-ltv-mortgages-i-e-the-lowest-mortgage-rates-available.205864/ or used https://www.bonkers.ie/compare-mortgages/ to check the best rates available? AIB variable rate would be 2.75% IMO you can do better than that. Ulster offer a 2.3% rate for 2 years and 2.6% for 4 years, and you can overpay 10% of the balance each year.

with free bank fees for life at the moment
Are you sure about that? I thought that they only offer free fees if you have a mortgage with them? Perhaps you have a legacy account?
 

Bizzybee

New Member
Messages
2
Be careful about letting your mortgage balance drop too low. When I switched mortgage a good few years ago, Danske said that they didn't give mortgages of less than €100,000.
 

alexandra123

Frequent Poster
Messages
253
I have started the process of switching from PTSB 4.5% LTV to AIB 2.95% LTV. You could switch to a lower fixed rate for a year or two and avail of the switcher money and then switch to the lowest LTV and start overpaying. I have 125k left to pay and hoping to clear it in 5 years with the AIB overpayments option.
 

Cathbarr

Registered User
Messages
11
I have started the process of switching from PTSB 4.5% LTV to AIB 2.95% LTV. You could switch to a lower fixed rate for a year or two and avail of the switcher money and then switch to the lowest LTV and start overpaying. I have 125k left to pay and hoping to clear it in 5 years with the AIB overpayments option.
I think well stick with the variable rate of 2.75% with AIB. I seen in yesterdays paper that PTSB are going to lower their rates shortly not too so by the time we sort everything out the market should be stable enough again. I wonder can rates go much lower than they are at the moment? I guess nobody knows but we could always fix it if it looked like a rate hike was on the cards
 
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