Much into moving Mortgage and what is timescale involved?

Runswithfeet

Coming to end of initial five year Fixed term on Mortgage with one of the major lenders,got the reminder letter last week that time for its term ends on March 4th 2016.Letter gave options on possible new terms for rest of mortgage.
I will give more details later on current terms of mortgage etc.Both myself and spouse working fulltime so it's hard to get time off to go into any rival banks to see if they could offer better terms for next part of mortgage.
However I saw in newspaper that they are advising people to 'shop' around at the moment for possible mortgage deals.

My questions today are
(1) typically what is 'turn around ' time if you were to switch lender?.....is it like car insurance that you would have to have it done before March 4th or end of current term?
(2)Are bank Mortgage advisors anyway flexible that they could meet you slightly outside 9- 4 banking hours to discuss switching provider? (money in it for their bank:))

Ps- We would have all payslips,P60's etc etc at hand.

Many thanks for any replies.

phormium

You can't actually switch until after your fixed term is up anyway, well you could technically but would pay a penalty for breaking the fixed term. If you are unsure as to what you are going to do opt for a variable rate after your fixed, then you can research and decide who to apply to if you want.

If you opt for another fixed rate you will be tied into that again until end of that term.

It's hard to say how long an actual switch takes, depends on banks and paperwork.

Runswithfeet

phormium wrote: »

You can't actually switch until after your fixed term is up anyway, well you could technically but would pay a penalty for breaking the fixed term. If you are unsure as to what you are going to do opt for a variable rate after your fixed, then you can research and decide who to apply to if you want.

If you opt for another fixed rate you will be tied into that again until end of that term.

It's hard to say how long an actual switch takes, depends on banks and paperwork.

Thanks for prompt reply:)....I'm not familiar with mortgages apart from the pain of paying it!...so for now we could just go into the most favourable variable rate with the current lender?....Is there a penalty cost then if you go to switch from a variable in one bank?

Billydoc

Takes two to three months usually for switching. Ulster bank can meet on Saturdays and late Thursday's I think if organised in advanced. I'm sure mortgage brokers could meet you when it suits you too. All you'd need is six months payslips, bank statements, most recent mortgage statement and any other evidence of recent loans that may help your switch. No penalty cost on variable mortgages. Only with fixed terms if you leave early etc. But just a word of caution. Seeing the best rates don't make it the best deal. For example kbc may be the best but don't pass their other rates onto existing customers. Boi cash back looks good but you're signed up for five years and other banks may be better value long term. Price around and try bonkers.ie even.

phormium

Yes, take best variable your existing bank has, there should be no additional cost to pay off a variable mortgage if you do switch.

No harm letting your existing bank know you are shopping around in case they have anything better to offer you

Runswithfeet

Thanks for the replies.....I thought Mortgage would be like car insurance in that you have to keep paying it without a break in time.....so while 'looking to switch'....(if there was a better longterm deal elsewhere) you are saying to just go with best variable rate in meantime with current lender?

When I get time I will post up details of Fixed term that's coming to an end.I think it was at 3.9% APR which was quite good at the time.We may possibly look to extend the term length of mortgage as have it over 20 years so payments quite high per month..

PaulM1977

Get independent mortgage advice, the banks are not able to research the market for you, they can only advise what they can offer whereas with a mortgage broker they can look at all lenders in the market including those that deal with brokers only.

Runswithfeet

PaulM1977 wrote: »

Get independent mortgage advice, the banks are not able to research the market for you, they can only advise what they can offer whereas with a mortgage broker they can look at all lenders in the market including those that deal with brokers only.

Thanks....if approaching a mortgage broker do you pay them a fee for the advice session or do they work on a commission basis if you then get the mortage through them?

phormium

Your mortgage is not like car insurance. There will be no break in the mortgage as when and if you take out a new one the old one will be cleared off with the funds from the new mortgage. The fixed term only relates to the rate you are on at the moment or any other fixed term rate you enter into it, it is not the term or expiry date of the mortgage itself, just an option you chose for a period of time within the 20 yr life of your mortgage.

If you want to extend the term you can ask any new lender for the amount you need to refinance over the longer term you want. Your existing borrower might extend it but requirements differ, no harm asking if you are going to stay with them.

PaulM1977

Runswithfeet wrote: »

Thanks....if approaching a mortgage broker do you pay them a fee for the advice session or do they work on a commission basis if you then get the mortage through them?

Some brokers charge a fee and some don't it is usually dependent on the level of work involved and what can be agreed with you from the outset, i.e. whether you are happy to pay a fee or not. When the mortgage draws down there is a commission paid and there is commission on the life cover. The fee could become payable if approval is obtained and then a client decides not to go ahead, then the broker has done a lot of work for nothing so they may look for a fee to be paid should approval be arranged but the client decides not to proceed for whatever reason. It depends on what is agreed with the broker from the beginning.

Runswithfeet

PaulM1977 wrote: »

Some brokers charge a fee and some don't it is usually dependent on the level of work involved and what can be agreed with you from the outset, i.e. whether you are happy to pay a fee or not. When the mortgage draws down there is a commission paid and there is commission on the life cover. The fee could become payable if approval is obtained and then a client decides not to go ahead, then the broker has done a lot of work for nothing so they may look for a fee to be paid should approval be arranged but the client decides not to proceed for whatever reason. It depends on what is agreed with the broker from the beginning.

Thanks,in fairness the advisor has to earn a living too......roughly how much would it be to ask them to look across the boards at all the lenders rates to get best deal going....or something to go back to bank mortgage is currently with (as a bargaining tool)?

PaulM1977

Existing lenders will give you a "take it or leave it" offer if you tell them what else is available from other lenders, they would all have retentions teams to try and get you to stay with them so that may not have to much wiggle-room. If you have got approval elsewhere, then check what your existing lender can do for you, but if you use a broker make them aware that you may stick with your original provider if you can get a good rate from them, as you say, the adviser has to earn a living too.
Depending on how far you proceed with the adviser will depend how much you would expect to be charged, if you don't switch with them in the end, as they may be relying on commission from the bank to be paid for all their work.

Runswithfeet

PaulM1977 wrote: »

Existing lenders will give you a "take it or leave it" offer if you tell them what else is available from other lenders, they would all have retentions teams to try and get you to stay with them so that may not have to much wiggle-room. If you have got approval elsewhere, then check what your existing lender can do for you, but if you use a broker make them aware that you may stick with your original provider if you can get a good rate from them, as you say, the adviser has to earn a living too.
Depending on how far you proceed with the adviser will depend how much you would expect to be charged, if you don't switch with them in the end, as they may be relying on commission from the bank to be paid for all their work.

Only starting out on the research road but getting a brokers advice would definitely be the way to go I would imagine. When you say that existing lender might have a 'take it or leave it' offer would that be at a slightly better rate than advertised for general public?

Realistically would probably stay with current lender if they matched or came close to best offers from elsewhere.

Runswithfeet

PaulM1977 wrote: »

Existing lenders will give you a "take it or leave it" offer if you tell them what else is available from other lenders, they would all have retentions teams to try and get you to stay with them so that may not have to much wiggle-room. If you have got approval elsewhere, then check what your existing lender can do for you, but if you use a broker make them aware that you may stick with your original provider if you can get a good rate from them, as you say, the adviser has to earn a living too.
Depending on how far you proceed with the adviser will depend how much you would expect to be charged, if you don't switch with them in the end, as they may be relying on commission from the bank to be paid for all their work.

Just a general query I would appreciate anyone answering re best tactics.

When I go to current lender to sign on for variable rate for foreseeable future( before checking out if there is anything better elsewhere for the long term)....Should I say to them that I 'am signing on but have they any wriggle room on the rate offered in letter of continuance of mortgage?'

or should I just sign on and then go researching elsewhere and come back to them if I get a better deal elsewhere.

Thanks for any feedback, going to talk to them either tomorrow or Monday.

Runswithfeet

Runswithfeet wrote: »

Just a general query I would appreciate anyone answering re best tactics.

When I go to current lender to sign on for variable rate for foreseeable future( before checking out if there is anything better elsewhere for the long term)....Should I say to them that I 'am signing on but have they any wriggle room on the rate offered in letter of continuance of mortgage?'

or should I just sign on and then go researching elsewhere and come back to them if I get a better deal elsewhere.

Thanks for any feedback, going to talk to them either tomorrow or Monday.

Just bumping this up....appreciate any feedback.

Bank of Ireland: Evie

Runswithfeet wrote: »

Just bumping this up....appreciate any feedback.

Good Morning Runswithfeet,

We noticed your post here and would just like to let you know that Bank Of Ireland now offer Skype & Facetime meetings with customers Monday to Friday 8am to 8pm. You can read more about this and set up one of these meetings here

We also offer Saturday morning meetings with mortgage advisors if you would prefer a meeting in branch.

If you would like to speak to us about this or anything else you can visit us over at our Talk to BOI forum

Thanks,

Evie