Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

Overhead involved in switching mortgage

Options
  • 03-02-2019 11:44pm
    #1
    s7ryf3925pivug
    Closed Accounts Posts: 4,007 ✭✭✭


    What is the typical overhead involved in switching? Should you expect to incur legal fees, have to change insurance, get valuation or survey, or can most of this be taken as ok since the previous bank gave you a loan? - Specifically if LTV and balance are low.


Comments

  • Options
    #2
    Q&A
    Registered Users Posts: 554 ✭✭✭Q&A


    Kyng Drab Selfishness wrote: »
    What is the typical overhead involved in switching? Should you expect to incur legal fees, have to change insurance, get valuation or survey, or can most of this be taken as ok since the previous bank gave you a loan? - Specifically if LTV and balance are low.

    Legal fees will be similar to original purchase. It should be straight forward though given your solicitor has already done the paperwork for first bank. I would budget about 1.5k (maybe a little more/less depending on how well you shop around). The best starting point is your existing solicitor but if they are much higher I would look elsewhere.

    You rightly mention ltv, property prices go up and down and a current ltv will be based off a current professional valuation (generally no more than 4 months old). Valuation costs depends on the bank (assuming you're not switching within months of the first valuation). Some banks cover the cost others don't. This should only cost about €150 if not covered by the bank. It's primarily a box ticking exercise but it doesn't mean you can proceed without it.

    House insurance might have to change if rebuild cost is higher in New valuation.
    Not sure how insurance firms handle an increase in rebuild cost mid policy but I wouldn't think it would be significant cost. Otherwise there should be no charge for changing banks on the cover.

    Mortgage protection policy may also need to be changed if mortgage term is extended our borrowing amount has increased. You might also have to change it if it were done through the original mortgage provider. If this is the case you can expect to get a better rate by shopping around. There shouldn't be any additional cost here unless your health has deteriorated.

    Most banks offer some form of cashback to help cover costs. Either a % of borrowing amount or a fixed amount.


  • Options
    #3
    s7ryf3925pivug
    Closed Accounts Posts: 4,007 ✭✭✭s7ryf3925pivug


    Very helpful, thank you.


Advertisement