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Worth switching mortgage?

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  • 25-09-2014 3:59pm
    #1
    jethrothe2nd
    Registered Users Posts: 573 ✭✭✭


    I have a mortgage with 148k outstanding, on a variable interest rate of 4.2%, 22 years left to pay. House is worth give or take 200K. I could potentially switch mortgage to KBC and get a lowered interest rate of 3.7%.According to the broker, I would pay the cost of solicitors fee and valuation report up front and this would then be refunded after drawdown, so the net cost for me to change would be 0. A years home insurance is also included.

    I need to look at all the Ts and Cs etc ,but on the face of it, I can't see any reason not to. Anyone done this or got any advice on pitfalls etc?

    Also, anyone got any feedback in general on banking with KBC? I am also considering moving my current account and credit card to them as well.


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    #2
    ChuckProphet
    Registered Users Posts: 646 ✭✭✭ChuckProphet


    jethrothe2nd wrote: »
    I have a mortgage with 148k outstanding, on a variable interest rate of 4.2%, 22 years left to pay. House is worth give or take 200K. I could potentially switch mortgage to KBC and get a lowered interest rate of 3.7%.According to the broker, I would pay the cost of solicitors fee and valuation report up front and this would then be refunded after drawdown, so the net cost for me to change would be 0. A years home insurance is also included.

    I need to look at all the Ts and Cs etc ,but on the face of it, I can't see any reason not to. Anyone done this or got any advice on pitfalls etc?

    Also, anyone got any feedback in general on banking with KBC? I am also considering moving my current account and credit card to them as well.

    Hi,

    Am in a similiar boat so would be interested in replies. Would save 40 per month according to their calculator.

    any idea if you have to do anything regarding TRS or is that dealt with at source?

    Apparently variables are expected to fall next year so your/my bank may reduce and kbc may not...could end up the same anyway!!


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    #3
    loyatemu
    Registered Users Posts: 14,782 ✭✭✭✭loyatemu


    I looked into this a few months ago when KBC launched their switcher offer - you can keep TRS as it is considered a continuation of your existing mortgage rather than a new one. Not sure what the procedure is for informing Revenue.

    in the end I couldn't switch as KBC only offered me about 66% of my current mortgage.

    I expect variable rates to go down as well, they're currently the highest in Europe and banking competition can only improve from where it is now...


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    #4
    pwurple
    Closed Accounts Posts: 12,449 ✭✭✭✭pwurple


    Is that KBC rate an introductory rate that expires after one year?

    They've been so-so for us. Have had some IT problems with them around direct debits, which in fairness they resolved, but it took a couple of weeks.


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    #5
    loyatemu
    Registered Users Posts: 14,782 ✭✭✭✭loyatemu


    pwurple wrote: »
    Is that KBC rate an introductory rate that expires after one year?

    1 year fixed - its actually 3.5%


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    #6
    homerno
    Registered Users Posts: 47 ✭homerno


    jethrothe2nd wrote: »
    I have a mortgage with 148k outstanding, on a variable interest rate of 4.2%, 22 years left to pay. House is worth give or take 200K. I could potentially switch mortgage to KBC and get a lowered interest rate of 3.7%.According to the broker, I would pay the cost of solicitors fee and valuation report up front and this would then be refunded after drawdown, so the net cost for me to change would be 0. A years home insurance is also included.

    I need to look at all the Ts and Cs etc ,but on the face of it, I can't see any reason not to. Anyone done this or got any advice on pitfalls etc?

    Also, anyone got any feedback in general on banking with KBC? I am also considering moving my current account and credit card to them as well.

    any feedback ? yes i found them horrific to deal with,


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    #7
    cmssjone
    Registered Users Posts: 355 ✭✭cmssjone


    homerno wrote: »
    any feedback ? yes i found them horrific to deal with,

    In what way homer? Thinking of availing of a free switch with them that will save me 130 a month from PTSB.


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    #8
    the groutch
    Closed Accounts Posts: 16,096 ✭✭✭✭the groutch


    it's not worth it imo, there is no way of knowing what rate each bank will have next year, yet alone 5,10,15 years down the line.
    although switching looks a good idea for short-term savings, you could just as easily lose money over the life of the mortgage.


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    #9
    loyatemu
    Registered Users Posts: 14,782 ✭✭✭✭loyatemu


    the groutch wrote: »
    it's not worth it imo, there is no way of knowing what rate each bank will have next year, yet alone 5,10,15 years down the line.
    although switching looks a good idea for short-term savings, you could just as easily lose money over the life of the mortgage.

    you can always keep switching - this was certainly possible before the bust when banks were competing with each other.

    If one bank is back in the switcher market now its likely others will join them over the next few years.


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    #10
    the groutch
    Closed Accounts Posts: 16,096 ✭✭✭✭the groutch


    but mortgages don't have the same ease of switching that the likes of insurance or utilities, especially with the risk of a property's value falling below the equity value required to switch.


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