Switching Mortgage Providers

Man007

Hi

I'm currently on a variable mortgage with AIB, KBC were in my workplace the other day and I said I'd enquire about swicthing.

They just came back to me there and because the value of my house has increased I can save €130 a month if I switch and take out a current account with them or if i keep my payments the same can reduce my term by 5 years.

Seems like a no brainer but is there anything else I need to consider is it safer to stay with a state owned bank, could KBC be luring people in with lower interest only to up it in the near future.

Justt trying to get idea of the Pro's and Cons

Cheers

Rebel1977

Are the rates better ?

Is there any condition like do you have to move your current account also ?

Trish56

It's a no brainer... go for it. KBC has been operating in Ireland for over 30 years and were formerly known as IIB Homeloans. Their rates are the best in the market and they give you 1k towards legal fees which should cover same and pay 50% towards your 1st years home insurance.

g0g

Don't think there are any cons except the hassle of the process (lots of forms) and possibly having to move your current account, but these are small things relative to the saving over the life of the mortgage! KBC and PTSB are the two switching options, and as another poster point out they offer money towards your fees too. I'm in the process of doing a switch myself. At least you can probably simply switch your life assurance across, so that's one less set of forms to be filling in!

peustace

I've transferred my mortgage to KBC for a better monthly repayment. I opened a current account to avail of slightly better rate also.

The only downside is KBC are extremely slow on everything. I took 3 full months to move when it should have been closer to 3 months. Correspondence was show on their side.

They need to make huge improvements in terms of their banking arm also. Pay off payments not going through to credit card and was given wrong information on deposit accounts. I'm on the phone to them most weeks, getting feed up of it at this stage. I would leave their current account if my mortgage wasn't dependent on it. I'm just hoping it will settle down soon

peustace

BTW Ulster Bank are now offering up to 1.5k towards legal fees

Rebel1977

AIB don't have any incentive for first time buyers like what BOI and KBC have if I were you I would switch to KBC as one poster here said they can be slow I know a friend of mine got his home mortgage from KBC but the interest rate is lower and over time its a big saving.

Man007

Yeah the rate is lower on condition that you switch your current account

My current account is currently with ptsb who I'm very happy with their fees are low and their online banking is great.

Any opinion on KBC online for anyone who's with them.

Trish56

You can also remortgage with permanent tsb who will give you 1k once you have a current account with them. Rates not as good as KBC but quite competitive and wont be as stressful as you will not have to provide them with 6 months current account statements. They are new to current accounts so will probably have teething problems.

Man007

Trish56 wrote: »

You can also remortgage with permanent tsb who will give you 1k once you have a current account with them. Rates not as good as KBC but quite competitive and wont be as stressful as you will not have to provide them with 6 months current account statements. They are new to current accounts so will probably have teething problems.

Cheers will take a look

Shannonsider

We took out a mortgage in 2007 and I was wondering recently if it would be worth investigating if we could take out a mortgage now at a better rate and pay off our existing mortgage. Is it as simple as that (albeit with a heap of paperwork?)

Trish56

Its depends Shannonsider on your loan to value. If less than 80% it would be worth considering as loan to value rates are available from, 3.69% or 3.55% if less than 50%.

Shannonsider

Trish56 wrote: »

Its depends Shannonsider on your loan to value. If less than 80% it would be worth considering as loan to value rates are available from, 3.69% or 3.55% if less than 50%.

Very much in negative equity I'm afraid - I'm assuming this shuts the door on my idea.

Shannonsider

Trish56 wrote: »

Its depends Shannonsider on your loan to value. If less than 80% it would be worth considering as loan to value rates are available from, 3.69% or 3.55% if less than 50%.

Very much in negative equity I'm afraid - I'm assuming this shuts the door on my idea.

Trish56

Unfortunately you are in the same situation as others who are in negative equity and are being fleeced by the banks on variable rates as high as 4.50%.