Just how easy is it to switch mortgage provider?

Chris_5339762

Hi folks, just looking for a bit of advice on this one.

4 years into a 35 year mortgage for €155000. Taken out this way to keep monthly repayments low knowing it would be paid off far quicker. A lot of thought went into this decision.

About €110000 remaining after 4 years, I estimate based on overpayment I'll have it paid off in about 6 years.

I'm with KBC on a variable of 4.5%. They resolutely refuse to put me onto one of their lower LTV products despite me having an estimated LTV of about 55% at this stage. They say all those products are for new customers only and 4.5% is the lowest they'll put me on, end-of. This is despite various sharply worded threats to leave..... they won't budge.

I'm seeing really good rates from PTSB (3.7% for <50% LTV, or 3.5% 1 year fixed). 3.9% with Ulsterbank, 4.05% with AIB. I could make significant savings per month here (between 50 and 90euro per month at a rough guess), but I'm really looking from experience from others as to what to do. Part of me says jump on it, but given the expense of switching and the humungous effort involved, I'm not sure in my case.

I guess my question is, given my rate of overpayment (of which I am, of course, extraordinarily thankful for) and an estimate of 6 years to pay it all off, is it worthwhile switching? Do you guys think its worthwhile switching, or just staying? Just how easy it it to switch, or in my case do you think it'll mean that anything I'll save in the 6 years will go on remortgaging? Will my bank ever lower their blooming variable rate to make all this debate and wonder pointless? (ARGH to the last one)

Any opinions/advice would be appreciated. I will probably scale up from an apartment to a house when this mortgage is done with, but thats a long way off and a lot can happen in life in that time.

Looking for opinions on this, and a good kick up the backside if necessary!

Trish56

KBC reduced all their rates recently but only for new customers. All banks are now offering excellent loan to value and fixed rates on remortgages and permanent tsb are offering 1k to new customers once you open a current account with them. This 1k should cover your legal fees for a remortgage and the only other fee you would have to pay is approx. €150 for a valuation fee.

You will need to complete a loan application and submit the following documents:

• Certificate of income
• 3 recent payslips
• P60 for 2014
• KBC Mortgage statement for 2014
• 6 months recent current account statements
• 6 months recent savings statement
• 6 months credit card statements
• 12 month statements on any short term borrowings
• I.D. Passport or Drivers Licence

You will definitely save money by switching - you can also take out a split mortgage ie 100k - 5 year fixed and 55k variable.

Trish

g0g

Can't speak for your questions about over-payments etc, but I'm in the process of switching myself so can at least tell you about that experience! I was (well actually still am) with KBC on 4.5% but the LTV is a healthy figure. Tried talking to them but (as expected) they wouldn't budge. I doubt you'll have any luck because if it ever became known that a bank would do that then (I'm guessing!) they'd have customers queuing up and getting regular valuations to see if their LTV had improved both from outstanding balance reducing and potentially value of property increasing.

I'm going via a broker. Started the process towards the end of January and am close enough to signing things now I think/hope! Yeah it's a lot of paperwork to be pulling together again, but definitely worth the effort for both the saving and the switching bonus they pay and we've knocked a year off the mortgage too.

Best part is not having to re-apply for life cover as this can just be switched across, but pretty much all forms are the same as last time.

Annoyingly we've had to go about opening the PTSB current account (to qualify for the bonus) separately rather than it all happening with the same application form!

d15ude

g0g wrote: »

Can't speak for your questions about over-payments etc, but I'm in the process of switching myself so can at least tell you about that experience! I was (well actually still am) with KBC on 4.5% but the LTV is a healthy figure. Tried talking to them but (as expected) they wouldn't budge. I doubt you'll have any luck because if it ever became known that a bank would do that then (I'm guessing!) they'd have customers queuing up and getting regular valuations to see if their LTV had improved both from outstanding balance reducing and potentially value of property increasing.

I'm going via a broker. Started the process towards the end of January and am close enough to signing things now I think/hope! Yeah it's a lot of paperwork to be pulling together again, but definitely worth the effort for both the saving and the switching bonus they pay and we've knocked a year off the mortgage too.

Best part is not having to re-apply for life cover as this can just be switched across, but pretty much all forms are the same as last time.

Annoyingly we've had to go about opening the PTSB current account (to qualify for the bonus) separately rather than it all happening with the same application form!

looking into switching myself.
do you have any ballpark figure on what legal fees i should expect?

Trish56

Legal fees to switch should be no more than 1k including VAT and outlay. If you switch to KBC they give you 2k back and if you switch to permanent tsb and open a bank account with them they give you 1k. KBC would offer the best rates if you open a current account with them.

Hope the above helps.

d15ude wrote: »

looking into switching myself.
do you have any ballpark figure on what legal fees i should expect?

Billydoc

Currently moving mortgage to Ulster bank. Approx 210k <60% ltv. They're offering me .8% reduction of vatible rate which currently 4.3% so I'll be paying 3.5% variable. Also they offered 3.3% fixed for three years. Rang my solicitor she quoted me under €900 all in for her fees. Ulster giving me €1500 euro for switching. I'll be saving €100 a euro a month by switching from 4.35% which I'm currently paying. I dropped in all documentation required and was approved within two weeks for initial meeting. Currently waiting on man to value the house which Ulster bank pays too. Currently with BOI. Crazy rates and Crazy bank charges.
Hope this helps