Switching Mortgages?

PGL

Hi folks

I am two and a half years into ~4% variable mortgage with PTSB, and am hoping I can soon switch to a lower interest rate. I don't want to re-mortgage, just simply switch the existing loan to get a lower interest rate. I don't know how much my house is worth now, but am pretty confident its worth more than when I bought it 2 and a half years ago. However I have not been following this space too closely, and so have a few queries:

1. Are there many people successfully getting better deals on existing mortgages at present?
2. If yes, what type of deals are people getting? i.e. lower percentage fixed mortgages or perhaps lower variable mortgages?
3. Can people recommend a mortgage broker?
4. Am I barking up the wrong tree until I am further than 2.5 years into paying off the mortgage?

Thanks!

L1011

If you aren't re-mortgaging you do not need a broker - just phone your bank. You may need a revaluation, this should cost less than €200. I went from 4.45% to 3.1% in November with BOI, 4 years in - just look to see what deals PTSB offer currently.

In my case no revaluation was required as I had a lower LTV in the first place and the bank also applied a straight line value increase which pushed me to the <50% rate; but I believe the <80% rate was the same anyway. >80% is what usually gets hammered.

PGL

L1011 wrote: »

If you aren't re-mortgaging you do not need a broker - just phone your bank.

Would I not be limiting my options by just sticking with my current lender? Surely the use of a mortgage broker who would review offers by all banks would be the best option?

L1011

You are remortgaging if you change, something you said you didn't want to do.

dudara

Moved to A&P

dudara

PGL

L1011 wrote: »

You are remortgaging if you change, something you said you didn't want to do.

Sorry for the confusion - I thought the term "re-mortgage" meant to top up your loan and therefore take on more debt. As I said in my original post, I don't want more debt and just want to reduce the interest I am paying.

Wheety

If you switch banks your current loan will be cleared and you'll owe the money to another bank instead. You will also have legal bills although some banks will cover this or give you straight cash.

What is your LTV? Do you think the LTV has dropped?

bbari

Bear in mind that the brokers don't review all banks, well not the two brokers I dealt with. One of em was advising to go with BOI even they were the highest at the time with a small amount of cash back gimmick. I think it will also involve solicitor. As L1011 said, you might avail better rate due to LTV being less as your property would have gone up in value and you would have also paid a part of your capital.

PGL

Wheety wrote: »

If you switch banks your current loan will be cleared and you'll owe the money to another bank instead. You will also have legal bills although some banks will cover this or give you straight cash.

What is your LTV? Do you think the LTV has dropped?

Without getting a proper valuation I don't know the value but it has certainly increased while at the same time the loan has reduced. Sounds like I need to talk to some brokers - any recommendations?

bbari

Can you see how much the house (if any) are being sold for in your area or have a look at propertypriceregister to see how much they were sold for in the recent past ?

Wheety

I wouldn't bother with a broker. I'd have a look around myself. You can get a reduced rate with PTSB. They have an offer of 0.5% off their LTV for 12 months. Could see if that saves you money first.

If you have a good LTV you could drop to around 3% with KBC. Use online calculators to have a rough idea how much you'll saving a month.

bbari

+1 on not to bother with Broker, they will just recommend whatever suits them or whoever they work with.

You can see the comparison on Bonkers.ie to see who offers the best rate. KBC do offer good rates if you setup current a/c with them but if the interest rates are dropped they won't offer the lower rate to their existing customers but the Ulster Bank and the AIB will.

Calculator - https://www.drcalculator.com/mortgage/ie/

PGL

bbari wrote: »

Can you see how much the house (if any) are being sold for in your area or have a look at propertypriceregister to see how much they were sold for in the recent past ?

There haven't been a lot of recent house sales in my estate, but I reckon my current LTV is approx 81%. I calculated this figure by dividing the current remaining loan balance by the current estimated value of the house - is this correct or should I be basing the calculation on the original loan value (which would result in an LTV of 83%)?

Eitherway do people reckon the LTV is too high at present or have I a fighting chance to get a better deal?

Thanks!

Wheety

You're correct first time. The remaining loan by the value.

You can definitely save. You'd get an even bigger discount if you drop below 80%.

Even with your own bank you can save. https://www.permanenttsb.ie/borrowing/mortgages/mortgage-interest-rates/

I'd stay on variable or a 1 year fixed until you drop below 80% LTV. You may even drop below this if you get a valuation done.

Chris_5339762

If you ring up your bank and get them to put you on a new Loan-To-Value rate then the process will be quick and will likely only involve a revaluation.

If you switch bank, either through a broker or yourself, you effectively complete one mortgage and take out a new one. That process takes four or five months, requires solicitors etc and legal fees.

James Bond Junior

Hi folks
1. Are there many people successfully getting better deals on existing mortgages at present?
Definitely.

2. If yes, what type of deals are people gettingi.e. lower percentage fixed mortgages or perhaps lower variable mortgages?
3.7% variable on 80% or less LTV with Ulster bank.

3. Can people recommend a mortgage broker?
I can't sorry.

4. Am I barking up the wrong tree until I am further than 2.5 years into paying off the mortgage?

I changed after 11 months with KBC, shaved 3 years off the mortgage term and saved circa 20k. House had gone up in value as I had renovated it and paid for renovations out of my own money and did a lot of the labour myself so I hadn't needed to put the renovations on the initial mortgage.

Do it!

bbari

Wheety wrote:

I'd stay on variable or a 1 year fixed until you drop below 80% LTV. You may even drop below this if you get a valuation done.

The above is a good idea however If you go with Ulster bank, they change your rate when your LTV bracket changes but AIB and few others don't.

You MAY not be able to get more than 80% as you aren't 1st time buyer anymore - confirm that with the bank.

FightingIrish

I'm a KBC customer, I phoned them saying I was shopping around for a better rate, they then said they could offer me some of the most competitive rates on the market to stay, I'm getting my house valued this Friday for a cost of €130, I know my ltv is approx 70% so the girl said if this is the case I can expect to lower my rate by approx 1%.... Also switching my current account to KBC and they apply a further 0.5% discount (I think) off my mortgage term.. It's a no Brainer for me.

Wheety

FightingIrish wrote: »

I'm a KBC customer, I phoned them saying I was shopping around for a better rate, they then said they could offer me some of the most competitive rates on the market to stay, I'm getting my house valued this Friday for a cost of €130, I know my ltv is approx 70% so the girl said if this is the case I can expect to lower my rate by approx 1%.... Also switching my current account to KBC and they apply a further 0.5% discount (I think) off my mortgage term.. It's a no Brainer for me.

What rates are you talking? They may be including the current account discount in any talk of rates.

I stayed with KBC but went from 3.69% variable to 3.05% fixed for 5 years. Could have switched to 2.95 variable but like being fixed for that long at that rate. I can't see the rates drop further. I know in UK and Europe you can get a little higher than 2% but I can not see that happening here.

bbari

FightingIrish wrote: »

I'm a KBC customer, I phoned them saying I was shopping around for a better rate, they then said they could offer me some of the most competitive rates on the market to stay, I'm getting my house valued this Friday for a cost of €130, I know my ltv is approx 70% so the girl said if this is the case I can expect to lower my rate by approx 1%.... Also switching my current account to KBC and they apply a further 0.5% discount (I think) off my mortgage term.. It's a no Brainer for me.

That's good news for you that they are able to do that for you regardless of their T&C where they don't have to! with LTV of 70% you can get 3.10% which is after the current a/c discount - nice one!

bbari

Wheety wrote: »

What rates are you talking? They may be including the current account discount in any talk of rates.

I stayed with KBC but went from 3.69% variable to 3.05% fixed for 5 years. Could have switched to 2.95 variable but like being fixed for that long at that rate. I can't see the rates drop further. I know in UK and Europe you can get a little higher than 2% but I can not see that happening here.

Don't you wish if you can borrow money from one of those banks to buy a property here

James Bond Junior

FightingIrish wrote: »

I'm a KBC customer, I phoned them saying I was shopping around for a better rate, they then said they could offer me some of the most competitive rates on the market to stay, I'm getting my house valued this Friday for a cost of €130, I know my ltv is approx 70% so the girl said if this is the case I can expect to lower my rate by approx 1%.... Also switching my current account to KBC and they apply a further 0.5% discount (I think) off my mortgage term.. It's a no Brainer for me.

KBC wouldn't entertain me and would rather have lost a customer than drop the rate.

Wheety

James Bond Junior wrote: »

KBC wouldn't entertain me and would rather have lost a customer than drop the rate.

Are you in negative equity or a LTV of over 90%?

Iamhere

At present PTSB do not allow existing customers to fix.

The 12 months discounted rates are only available for new customers.

The only way to move LTV band is if you have not availed of this offer:

https://www.permanenttsb.ie/borrowing/mortgages/mvr-switch-offer/

newacc2015

OP call your bank to tell them to prepare the docs for your solicitors as you considering switching. You just want your deeds from the vault to ensure the switching process moves smoothly. Chances are you will be offered a better rate

James Bond Junior

Wheety wrote: »

Are you in negative equity or a LTV of over 90%?

Initial mortgage came in at 83% which put me at the 90% rule. Renovated and revalued which put me at 78% ltv so I was able to get a better rate

Wheety

James Bond Junior wrote: »

Initial mortgage came in at 83% which put me at the 90% rule. Renovated and revalued which put me at 78% ltv so I was able to get a better rate

Are you saying KBC won't let you move to one of their new rates? Are you on a fixed? They opened that up to all current customers. You just need a valuation carried out by one of their recommended valuers

PGL

FightingIrish wrote: »

I'm getting my house valued this Friday for a cost of €130

Do the bank need to do the valuation or can you use an independent valuer? Do you mind me asking who is valuing your house for a cost of €130?

thanks!

L1011

PGL wrote: »

Do the bank need to do the valuation or can you use an independent valuer? Do you mind me asking who is valuing your house for a cost of €130?

thanks!

The bank will have a panel of independent valuers they will offer you - in my case when buying I was basically told to use one as the other in the area was the EA I was buying from!

James Bond Junior

Wheety wrote: »

Are you saying KBC won't let you move to one of their new rates? Are you on a fixed? They opened that up to all current customers. You just need a valuation carried out by one of their recommended valuers

At the time I approached KBC and expressed a wish to have a lower LTV and associated rate applied. They wouldn't entertain it even when I told them I would move. I wanted to leave them anyway as I had nothing but issues with them from day one such as signing me up for a 3.9% rate but actually paying a 4.1% rate for the 1st six months and a myriad of other blunders and infuriating errors on their behalf.

KBC - "The bank of you" really means the "bank of get you in and then fcuk you."

listermint

James Bond Junior wrote: »

At the time I approached KBC and expressed a wish to have a lower LTV and associated rate applied. They wouldn't entertain it even when I told them I would move. I wanted to leave them anyway as I had nothing but issues with them from day one such as signing me up for a 3.9% rate but actually paying a 4.1% rate for the 1st six months and a myriad of other blunders and infuriating errors on their behalf.

KBC - "The bank of you" really means the "bank of get you in and then fcuk you."

So why haven't you moved ?

bbari

That's the very reason I didn't go with KBC, the new lower rates are for new customers only but if you go with UB, the new lower rates will be offered to the existing customers also.

listermint

bbari wrote: »

That's the very reason I didn't go with KBC, the new lower rates are for new customers only but if you go with UB, the new lower rates will be offered to the existing customers also.

Surely by going with them you are a new customer.............

AlmightyCushion

listermint wrote: »

Surely by going with them you are a new customer.............

I think he means that if the rates drop in the future, after he has taken out a mortgage with KBC, then his rate won't be reduced whereas they would with Ulster Bank.

newacc2015

bbari wrote: »

That's the very reason I didn't go with KBC, the new lower rates are for new customers only but if you go with UB, the new lower rates will be offered to the existing customers also.

Why did you go with Ulster? There is a risk in a few years that they will leave, bundle up your mortgage and sell it to vulture.

AIB, Haven and EBS have rates similar to UB, but they are in it for the long haul

James Bond Junior

listermint wrote: »

So why haven't you moved ?

I did. Go back a few posts and you will see that I moved to Ulster Bank after 11 months saving 20k and taking three years off the term with an identical repayment.

bbari

newacc2015 wrote: »

Why did you go with Ulster? There is a risk in a few years that they will leave, bundle up your mortgage and sell it to vulture.

AIB, Haven and EBS have rates similar to UB, but they are in it for the long haul

I didn't go with UB, I went with AIB. UB rate is 3.10% and AIB is 3.30%. I was thinking to switch with UB as their rate is lower.

FightingIrish

PGL wrote:

Do the bank need to do the valuation or can you use an independent valuer? Do you mind me asking who is valuing your house for a cost of €130?

Hi, as someone else mentioned, the bank supplied me with a list of valuers to choose from, I chose <mod snip: see forum charter>

My current rate is quite high at 4.2 so hoping to come down to 3.15%

FightingIrish

I should also mention that this is a new service KBC launched last Dec to keep existing customers from switching.

PGL

FightingIrish wrote: »

Hi, as someone else mentioned, the bank supplied me with a list of valuers to choose from, I chose <mod snip>

My current rate is quite high at 4.2 so hoping to come down to 3.15%

Would one valuation be sufficient to use if I was talking to more than one bank?

FightingIrish

I don't know to be honest, banks may insist on their own independent valuers.

PixelTrawler

L1011 wrote: »

If you aren't re-mortgaging you do not need a broker - just phone your bank. You may need a revaluation, this should cost less than €200. I went from 4.45% to 3.1% in November with BOI, 4 years in - just look to see what deals PTSB offer currently.

In my case no revaluation was required as I had a lower LTV in the first place and the bank also applied a straight line value increase which pushed me to the <50% rate; but I believe the <80% rate was the same anyway. >80% is what usually gets hammered.

You went from 4.45% to 3.1% and that was all with BOI?
Do you go variable to fixed? Or did you threaten to leave and they gave you a reduced rate?

We're on 4.3% variable with BOI currently and just over 3 years in.

(Our LTV when we took the mortgage was 74% and house prices have gone up a bit here and we've a small amount of the capital repaid. At a guess our loan to value now would be roughly 60% ish at current values)

newacc2015

PixelTrawler wrote: »

You went from 4.45% to 3.1% and that was all with BOI?
Do you go variable to fixed? Or did you threaten to leave and they gave you a reduced rate?

We're on 4.3% variable with BOI currently and just over 3 years in.

(Our LTV when we took the mortgage was 74% and house prices have gone up a bit here and we've a small amount of the capital repaid. At a guess our loan to value now would be roughly 60% ish at current values)

I heard if you phone your bank to say get the deeds ready for transfer it is hard signal that you are switching bank. They start making serious offers as they know you are not tire kicking. But indicating that you are willing to leave

PixelTrawler

newacc2015 wrote: »

I heard if you phone your bank to say get the deeds ready for transfer it is hard signal that you are switching bank. They start making serious offers as they know you are not tire kicking. But indicating that you are willing to leave

I heard with BOI you have to be genuinely ready to move as they have wised up to simply calling their bluff so they want evidence you are really moving.
But im not sure, I never tried...

Looking at the rates table, I suspect the user in question went variable to fixed. They have a fixed rate of 3.1%...

L1011

PixelTrawler wrote: »

You went from 4.45% to 3.1% and that was all with BOI?
Do you go variable to fixed? Or did you threaten to leave and they gave you a reduced rate?

We're on 4.3% variable with BOI currently and just over 3 years in.

(Our LTV when we took the mortgage was 74% and house prices have gone up a bit here and we've a small amount of the capital repaid. At a guess our loan to value now would be roughly 60% ish at current values)

Variable to fixed. BOIs variable rates are terrible and I personally don't see them falling any time soon but I'm neither psychic or a financial adviser.

PixelTrawler

L1011 wrote: »

Variable to fixed. BOIs variable rates are terrible and I personally don't see them falling any time soon but I'm neither psychic or a financial adviser.

They sure are terrible! We regret sticking with BOI.
Did you fix for long and two questions if you dont mind:

What was involved in moving to fixed?
And what happens after - do you drop back to the full standard rate and lose any discount based on LTV?

Edit - just saw this on their site so it looks like back to the discounted rate...

"At the end of a fixed rate period, existing customers on a fixed rate can choose from our range of fixed rate options or roll to the prevailing Loan to Value Variable rate."

PGL

thanks for all the feedback folks.

Just been on bonkers website, (and played around with the LTV, lowering it to 75% which is definitely too low) and it looks like I'll have to change bank as PTSB don't appear have any offers for existing customers.....

loyatemu

I can recommend AIB - we switched to them (from BOI) and they were very helpful and their rates are among the lowest on the market.

L1011

PixelTrawler wrote: »

They sure are terrible! We regret sticking with BOI.
Did you fix for long and two questions if you dont mind:

What was involved in moving to fixed?
And what happens after - do you drop back to the full standard rate and lose any discount based on LTV?

Edit - just saw this on their site so it looks like back to the discounted rate...

"At the end of a fixed rate period, existing customers on a fixed rate can choose from our range of fixed rate options or roll to the prevailing Loan to Value Variable rate."

One signed bit of paper, which they wanted faxed - I couldn't find a working fax machine in the entire building so I dropped it in personally - quicker to walk to Mayor Street!

3 years, when expired I'll be offered the entire option of LTV and fixed/variable again. They do offer the same rates to everyone.

zl1whqvjs75cdy

As a general question (and sorry to hijack op), is it a good idea change your mortgage provider every couple of years, especially of the ltv starts to drop off towards the end of the loan?

PGL

Just a further update:

I called up PTSB (who are my current lender) to inform them I'm shopping around and they did not even try to convince me to stay with them.

I spoke to a broker via the bonkers website, who is recommending going with a fixed 2.99% mortgage with KBC for 3 to 5 years. The next best lender offering a fixed option is BOI @ 3.25%, and then AIB at 3.6%. In terms of variable, Ulster Bank & KBC are both sitting at 3.1%, followed by AIB and Haven at 3.3%.

What are people's thoughts on going with KBC? i.e. would they be a risky option in terms of leaving Ireland and selling on the mortgage?

Is fixing the mortgage a good option? The broker reckons rates will not drop any further, and when the brexit and trump factors are considered, there is a risk interest rates could rise in the foreseeable future.

Can anyone recommend an alternative to bonkers.ie?