Switching mortgage from EBS - redemption

Paul Tergat

Hi,

I currently have a mortgage with EBS and I am switching to Bank of Ireland. I'm not sure how redemption works though as I want to pay a small lump sum off my mortgage. e.g.

current EBS mortgage: €405k
BOI approved mortgage: €400k.

so say I have 10k to pay a lump sum off the mortgage, can I make the payment to EBS now to reduce down the mortgage down to €395k and then my solicitor will draw the full €400k from BOI and give me the difference, i.e. 5k minus any further accrued interest due?


Also, how have people managed to get an actual redemption amount from EBS? On contacting them, they won't give it over the phone and post out to you the amount and specify a rough interest per day amount which obviously might not be 100% accurate?

paulieeye

Paul Tergat wrote: »

Hi,

I currently have a mortgage with EBS and I am switching to Bank of Ireland. I'm not sure how redemption works though as I want to pay a small lump sum off my mortgage. e.g.

current EBS mortgage: €405k
BOI approved mortgage: €400k.

so say I have 10k to pay a lump sum off the mortgage, can I make the payment to EBS now to reduce down the mortgage down to €395k and then my solicitor will draw the full €400k from BOI and give me the difference, i.e. 5k minus any further accrued interest due?


Also, how have people managed to get an actual redemption amount from EBS? On contacting them, they won't give it over the phone and post out to you the amount and specify a rough interest per day amount which obviously might not be 100% accurate?

I have just switched to PTSB from BOI, the solicitor handled getting the redemption figure. Do you mean they will only post out the figure?
But it sounded the same as you. They gave a number (this was out by a few grand as a payment came out soon after) and a rough interest per day value. Solicitor then made sure he had enough to pay bank 1 and his fees from the drawdown amount, I needed to top it up a bit but got that back when the actual redemption figure was known on the day it was paid.
So basically they will give you an estimate and it will all be reconciled on the day its paid.

Now the lump some you want to pay off I would imagine falls in the same way. So you only need to drawdown 395k from bank 2, then you send your solicitor the other 10k, this makes up the difference. Then your solicitor pays bank 1 the full 405k.

So to summarise, just ask your solicitor to sort it out!

Paul Tergat

paulieeye wrote: »

I have just switched to PTSB from BOI, the solicitor handled getting the redemption figure. Do you mean they will only post out the figure?
But it sounded the same as you. They gave a number (this was out by a few grand as a payment came out soon after) and a rough interest per day value. Solicitor then made sure he had enough to pay bank 1 and his fees from the drawdown amount, I needed to top it up a bit but got that back when the actual redemption figure was known on the day it was paid.
So basically they will give you an estimate and it will all be reconciled on the day its paid.

Now the lump some you want to pay off I would imagine falls in the same way. So you only need to drawdown 395k from bank 2, then you send your solicitor the other 10k, this makes up the difference. Then your solicitor pays bank 1 the full 405k.

So to summarise, just ask your solicitor to sort it out!

Appreciate the quick response. Bank of Ireland have one of the terms of their cashback is that you need to drawdown the loan in full and while I suspect this is really to cover off you won't get it for phased / tranche drawdown of a mortgage, e.g. if self building, i dont want this to potentially be an issue.

It might be best as you mention to leave to the solicitor who once tey get a redemption figure I will then transfer her the difference needed to clear the mortgage. I was really just thinking should I just make the payment now and she can then transfer me the balance left having drawn the full amont from Bank of Ireland.

Bellview

Paul Tergat wrote: »

Appreciate the quick response. Bank of Ireland have one of the terms of their cashback is that you need to drawdown the loan in full and while I suspect this is really to cover off you won't get it for phased / tranche drawdown of a mortgage, e.g. if self building, i dont want this to potentially be an issue.

It might be best as you mention to leave to the solicitor who once tey get a redemption figure I will then transfer her the difference needed to clear the mortgage. I was really just thinking should I just make the payment now and she can then transfer me the balance left having drawn the full amont from Bank of Ireland.

If you have option to pay down lump sum in ebs this might simplify as then only moving mortgage across from one bank to another. I did this earlier this year when switching from boi to kbc

Paul Tergat

Bellview wrote: »

If you have option to pay down lump sum in ebs this might simplify as then only moving mortgage across from one bank to another. I did this earlier this year when switching from boi to kbc

Thanks and that is part of my thinking too as i moved off fixed rate so can now make a payment. Did you end up having a surplus amount from the new bank and if so is it just a case of drawing down full amount wiht KBC and being given a minor refund from your solicitor?

Bellview

Paul Tergat wrote: »

Thanks and that is part of my thinking too as i moved off fixed rate so can now make a payment. Did you end up having a surplus amount from the new bank and if so is it just a case of drawing down full amount wiht KBC and being given a minor refund from your solicitor?

What I did was apply for lower value. There was a small gap in end as kbc took a month more than planned..and I got this back from solicitor

Q&A

Paul Tergat wrote: »

Thanks and that is part of my thinking too as i moved off fixed rate so can now make a payment. Did you end up having a surplus amount from the new bank and if so is it just a case of drawing down full amount wiht KBC and being given a minor refund from your solicitor?

Yes, this happened to me. Solicitor phoned up and said there was money left over. I had been overpaying. They simply transferred the surplus to me. Remember there are lots of moving parts to a switch. Redemption numbers based on today's value will be different tomorrow due to interest.

My switch was from EBS as well. I left it to the solicitor.

Paul Tergat

Thanks all, very helpful!

Paul Tergat

Tag on question here... My existing mortgage protection is about 3 months short of the new mortgage term so having to get a new one. I'm with zurich and so got onto them and arranged a new policy, whereas I assumed that it was a case of extending the old one.

The issue I now have is zurich are saying they can only start the new policy once the old one is cancelled, which obviously ebs won't accept as they will need to be covered until the mortgage with them is cleared. bank of Ireland won't accept something to say a policy will be taken out, they need the policy in place.

I'm not sure what people do when remortgaging and need to get a new policy? Should I just tell zurich where to go and go to another company as annoying as it will be.

I thought switching was meant to be easy!!

Thanks

Bellview

Paul Tergat wrote: »

Tag on question here... My existing mortgage protection is about 3 months short of the new mortgage term so having to get a new one. I'm with zurich and so got onto them and arranged a new policy, whereas I assumed that it was a case of extending the old one.

The issue I now have is zurich are saying they can only start the new policy once the old one is cancelled, which obviously ebs won't accept as they will need to be covered until the mortgage with them is cleared. bank of Ireland won't accept something to say a policy will be taken out, they need the policy in place.

I'm not sure what people do when remortgaging and need to get a new policy? Should I just tell zurich where to go and go to another company as annoying as it will be.

I thought switching was meant to be easy!!

Thanks

Switching can be painful . I'm with irish life. When I mentioned the switch to my broker he gave me the doom day story but when it turns out I didn't have an issue so I was able to keep same policy. I did have a back up policy ready though.

Paul Tergat

Bellview wrote: »

Switching can be painful . I'm with irish life. When I mentioned the switch to my broker he gave me the doom day story but when it turns out I didn't have an issue so I was able to keep same policy. I did have a back up policy ready though.

Thanks - assuming you didn't need to increase the term on your policy if you were able to use it again?

Bellview

Paul Tergat wrote: »

Thanks - assuming you didn't need to increase the term on your policy if you were able to use it again?

Not needed but I had shortened my mortgage by 3 or 4 months in new bank so did not come up. .. must admit it was an accidental change than something planned

Sarn

Paul Tergat wrote: »

Thanks - assuming you didn't need to increase the term on your policy if you were able to use it again?

My understanding is that you can’t increase your policy term. In our case we reduced the term of our mortgage by about nine months in order to avoid the issue, and transferred our policy across to the new mortgage.

Noddy33

Hi All,

I was just wondering if anyone has any experience of switching from fixed EBS to Avant Corporation group. I am in a position where I look set to meet all the requirements to avail of the <60% LTV fixed rate of 1.95% with the Avant group who have only recently entered the Irish market.

I am considering increasing my mortgage payments by €50 and this with the reduction of current interest rate of 3.15% to 1.95% would take approximately 8years off my mortgage loan duration. It seems like a no brainer unless people would advise otherwise or should I have any concerns or issues with the Avant group?

Given the bit of uncertainly in relation to what the Central Bank might do with interest rates to cover the ongoing costs of Covid across the globe I am tempted to sign up for 7 year period at this low fixed rate. There is no financial reward for switching to Avant group unlike the likes of KBC who give €3k cash back but the overall savings and time period knocked off my mortgage length surely makes sense unless people would advise otherwise?

Bellview

Noddy33 wrote: »

Hi All,

I was just wondering if anyone has any experience of switching from fixed EBS to Avant Corporation group. I am in a position where I look set to meet all the requirements to avail of the <60% LTV fixed rate of 1.95% with the Avant group who have only recently entered the Irish market.

I am considering increasing my mortgage payments by €50 and this with the reduction of current interest rate of 3.15% to 1.95% would take approximately 8years off my mortgage loan duration. It seems like a no brainer unless people would advise otherwise or should I have any concerns or issues with the Avant group?

Given the bit of uncertainly in relation to what the Central Bank might do with interest rates to cover the ongoing costs of Covid across the globe I am tempted to sign up for 7 year period at this low fixed rate. There is no financial reward for switching to Avant group unlike the likes of KBC who give €3k cash back but the overall savings and time period knocked off my mortgage length surely makes sense unless people would advise otherwise?

Best speak with a broker that offer both avant and kbc. When I was switching a few months back avant were brand new.. and I did not look at them as I was rmtoo far down the road with kbc. Brokers will tell u quickly if process is easy or not. .. looks like all good news for you

Noddy33

Bellview wrote: »

Best speak with a broker that offer both avant and kbc. When I was switching a few months back avant were brand new.. and I did not look at them as I was rmtoo far down the road with kbc. Brokers will tell u quickly if process is easy or not. .. looks like all good news for you

I have been in touch with a broker and there advising that the Avant should I meet all the requirements for the 1.95% fixed rate is their recommended choice.
The broker has told me that there is no increased risk by choosing the Avant group but I suppose I am perhaps being cynical and just assume that they are always going to tell me that anyways..........rather than the full truth perhaps!

Just wondering if people out there had any general concerns or could comment on their own experience about the Avant group.

Bellview

Noddy33 wrote: »

I have been in touch with a broker and there advising that the Avant should I meet all the requirements for the 1.95% fixed rate is their recommended choice.
The broker has told me that there is no increased risk by choosing the Avant group but I suppose I am perhaps being cynical and just assume that they are always going to tell me that anyways..........rather than the full truth perhaps!

Just wondering if people out there had any general concerns or could comment on their own experience about the Avant group.

you are right to check. from my experience KBC are hard work and anyone looking to switch to them need to expect a 6 months journey.. so if coming off a fixed rate work well in advance.. and don't worry that they will do the job quickly