Remortgage

Chunkychops

Hi,

I am looking to remortgage and was checking out the best deals out there. I owe 280K on my house. Its worth approx 380K.

Went to www.a2zmortgages.ie got talking to a guy there and he reckons he can get me a 2 year discounted rate with Bank of Scotland at 3.7%.

I am with EBS at the moment paying 4.25% I think. It looks like I can save about €89 per month.
The broker reckons that he will cover the legal fees on switching as well.
I know there is a little bit of hassle with applying for a mortgage again but I think its worth it to save €89 every month for 2 years.
What do you guys think? Should I go for it?

Joe

sofireland

Well thats a good rate, anything below 75% of your property tracks ECB at 0.45% for two years then changes to 1%

You'd save for two years as you said, but they have the clawback built in, ie legal fees which are about 1000 so you'd have to pay it back if you moved again.

Nothing wrong with saving a few quid in this day and age

Chunkychops

Thanks for that,
In relation to the legal fees, the broker said that he would cover the fees himself out of the commission so the Bank would have nothing to claw back from me. So I get the 2 years iscounted mortgage and I'm free to move again when the discount period is up! Right???

Seems like a good deal, maybe too good of a deal but the broker said that he will cover the fees out of his commission as long as I use a specified solicitor that he has a special deal with. He wants me to take my mortgage protection with him as well through Irish Life. The quote he gave me is €25 per month cheaper than I am paying at the moment.

I just want to get the best deal and although I have had just one post on here I think its as good a deal as I'm going to get. I will save the price of a holiday every year from the savings according to my maths.

Anyhow, thanks for the advice. Any other opinions greatly received.

stepbar

Before you go doing anything have you talked to EBS? Forget the internet stuff thats joe public price. Im sure they have some discretion with rates. Once a bank / building society has you on a Mortgage they wont want to loose you so you might be able to play ball with them.

sofireland

Just one thing, cheapest isn't always the best.

The legal fees is a nice sweetener though, but in reality he's making at least 2800 on the mortgage, then gets the commission on the life, so he's got the legal fee well covered, cos they can be done for very little.

I must admit i switched my mortgage to Bank of Scotland in April, very happy with it to be honest.

Chunkychops

Thanks for the opinions. It looks like ye are in general agreement that I should go for it. The broker reckons he is saving me €1,000 on legals. I guess he is pretty interested in getting the business - this has to be better than going direct to BOS coz I am getting the cheapest rate and I am not subject to a penalty from the Bank if I switch after the 2 years.