Switching Mortgage

Darragho

Hi All,

I am just seeking some advice.

My wife and I are currently shopping around for a switcher Mortgage, we are currently paying 5.9% variable (2 rate increases in the last few months.:mad:

Thankfully we are not in negative equity the house is worth approx 200k
We currently owe 146k paying approx 900 per month, We have been offered 4.5 fixed for 2 years with another lender and are in the process of sending back all documentation to them.

I have debts of approx 25k missed a few payments in the last few months and then catch up with them but overall I imagine my credit rating would not be so bad. all going well will be debt free in approx 5years never want to see a credit card again. I met with my bank recently and they restructed a loan I had over 7 yrs and got rid of my overdraft also I have to say I am very grateful to them they were most helpful

My wife has no debts.

Our combined salaries would be 71k, The thing is I only have a contract and not in permanent emplyment.

Between us we have savings of 100k locked away in an account. We can get access to it in September this money is with our current mortgage lender and we have advised them that if we do switch we are taking this money with us as they have been most unhelpful.

Am just wondering what our chances may be of getting approved for the mortgage it would be great if we get it as the rate seems quite competitive at the moment in the current climate.

My concern is with me only being in contract work at the moment and also my missing a few payments this may impact on me negatively.

Any advise greatly appreciated.

Thanks

bailes

Darragho,

How did you get on?

You hit the nail on the head with the issues however their may be an alternative solution to your problem.

You have suggested the rate being offered on 2 yr fixed is 4.5% so i assume you are dealing with BOI, they will not look favourably upon the credit bureau however depending on the nature of the contract work and how you have managed to build up the savings, this could work.

If it doesn't work let me know, i might be able top steer you in the right direction.

Regards,

Darragho

Hi Bailes,

We still have not sent back documentation yet just waiting on bank statement for my wife and all will be sent back I will keep you updated on how we get on.

re our 100k savings it is made up of redundancy and inheritance,
we are dealing with Kbc they seem to be the only ones doing mortgage switchers at the moment

bailes

Darragho,

If you have started the process that's fine, Are you using a broker?

if so again that's fine, if not let me know as KBC only have 2 underwriters looking at this stuff and believe me when i say that you will want to ensure one of them doesn't get it.

i still feel that with the deposits you have that this could be done, if you are not using or not happy with the boker you are using let me know.

Best of Luck

naasrd

Hi, looking for some advice re switching. Have 43,000 left on a 60,000 mortage took out in 2002 with Perm/TSB (sold house with a reedeemed mortage for 265k and borrowed 60k to trade up, present house cost 317,500) We've around 45,000 in savings and shares. Wife working, 48k, I'm self employed making about 30k a year. Will any bank consider us? Just want to move because we're fed up with PerTSB having tried for over 6 months to cancel a mortgage protection policy having taken out a new one with Zurich and still paying both.

bailes

Hi naasrd,

I just want to make sure i have this right.

You have a mortgage of €43k outstanding on a property valued at c.€240K (assumed) which is a loan to value of 18%.

Incomes of €48k and €30k respectively

The variables that I need to take into account are ages, if there are any other loans and your credit record.

By the way I also note that you have or had 2 mortgage protection policies, if you cancelled the original which i assume was with Irish Life and more expensive than the replacement Zurich policy, you are entitled to the premiums you paid to Irish Life whien 2 policies were in force to be reimbursed.

On the face of it, if my assumptions above are correct this deal could be switched however you do have to factor in the costs for doing so, legals, valuation etc.

Some of the info i have requested is personal so if you want to PM me i will have a look in more detail and revert.

Hope this helps

killers1

naasrd wrote: »

Hi, looking for some advice re switching. Have 43,000 left on a 60,000 mortage took out in 2002 with Perm/TSB (sold house with a reedeemed mortage for 265k and borrowed 60k to trade up, present house cost 317,500) We've around 45,000 in savings and shares. Wife working, 48k, I'm self employed making about 30k a year. Will any bank consider us? Just want to move because we're fed up with PerTSB having tried for over 6 months to cancel a mortgage protection policy having taken out a new one with Zurich and still paying both.

Irish Life/ptsb will have to refund you for the mortgage protection premiums paid since second policy was taken out or from when you gave them written notice to cancel policy. In respect of moving mortgage you need to remember solicitors fees etc which may take the benefit out of it. I'd suggest moving to ptsb's 5 yr fixed rate of 3.7%. By far & away the cheapest of it's kind out there and cheaper than some banks variable rates.