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Mortgage - low fee for breaking fixed rate

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    #242
    browne_rob5
    Registered Users Posts: 466 ✭✭browne_rob5


    mrcheez wrote: »
    Interesting, and roughly how long does it take to switch over?

    Should I initiate the process about 1.5 months before the end of the fixed rate period, or just in latter 2 weeks?

    It took me 6 weeks but I was on holidays for 2 weeks during this and did not follow up on queries. Should take 4 weeks I'd day. Its a bit of work but obviously worth it in the long run if making a good saving. I would initiate 2 months before to make sure everything is in order for draw down when your fixed rate ends.


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    #243
    cruizer101
    Registered Users Posts: 3,205 ✭✭✭cruizer101


    Go to https://www.ccpc.ie/consumers/financial-comparisons/mortgage-comparisons/
    It will lay out all the different rates for whatever LTV you are.
    It won't show cashback offers however so you will have to take those into account.


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    #244
    aomh
    Registered Users Posts: 38 ✭aomh


    Millem wrote:
    Ulster bank 2.2% fixed for 5 years but you need to have a mortgage of €300,000 or more.


    Hi, I'm in the middle of a 5yr fixed at 3.4% with Ulster bank, can I negotiate a better deal with the same bank if they have better rates on offer


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    #245
    Cyrus
    Registered Users Posts: 19,670 ✭✭✭✭Cyrus


    aomh wrote: »
    Hi, I'm in the middle of a 5yr fixed at 3.4% with Ulster bank, can I negotiate a better deal with the same bank if they have better rates on offer

    you can but you may have a breakage fee to pay to ulserbank so that needs to be weighed against savings you could make

    contact them for a breakage fee


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    #246
    Millem
    Registered Users Posts: 7,729 ✭✭✭Millem


    pwurple wrote: »
    AIB have a 5 year fixed @ 2.5%.

    What variable are you rolling on to?

    All the fixed rates seem very low to me, makes me think a variable drop is on the horizon this year or next.

    You must have a bet of b3 minimum for that rate.


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    #247
    Millem
    Registered Users Posts: 7,729 ✭✭✭Millem


    aomh wrote: »
    Hi, I'm in the middle of a 5yr fixed at 3.4% with Ulster bank, can I negotiate a better deal with the same bank if they have better rates on offer

    Yes try it, that’s what I did with AIB and they have offered to waive the breakage fee if I stay with them.
    We met Ulster bank and they offered us the 2.2% and €1500 to cover legal fees so it seems like a no brainer!


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    #248
    deco72
    Registered Users Posts: 295 ✭✭deco72


    Millem wrote: »
    Yes try it, that’s what I did with AIB and they have offered to waive the breakage fee if I stay with them.
    We met Ulster bank and they offered us the 2.2% and €1500 to cover legal fees so it seems like a no brainer!

    Would you not think about going with KBC instead on the 2.25% mortgage and €3000 cashback. It's also only a 2yr fixed rather than a 5yr. So could easily do the same again in 2yrs time if it was worthwhile.


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    #249
    christy c
    Registered Users Posts: 2,193 ✭✭✭christy c


    What are people paying in legal fees for switching? I was quoted €1,250 excluding VAT and outlay. About €1,900 all in.

    I intend to shop around more.


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    #250
    listermint
    Registered Users Posts: 33,615 ✭✭✭✭listermint


    christy c wrote: »
    What are people paying in legal fees for switching? I was quoted €1,250 excluding VAT and outlay. About €1,900 all in.

    I intend to shop around more.

    What's outlay ?


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    #251
    brightkane
    Registered Users Posts: 2,716 ✭✭✭brightkane


    christy c wrote: »
    What are people paying in legal fees for switching? I was quoted €1,250 excluding VAT and outlay. About €1,900 all in.

    I intend to shop around more.

    Got a quote today for 1500 all in


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    #252
    christy c
    Registered Users Posts: 2,193 ✭✭✭christy c


    listermint wrote: »
    What's outlay ?

    Search fee, postage and other mumbo jumbo.


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    #253
    christy c
    Registered Users Posts: 2,193 ✭✭✭christy c


    brightkane wrote: »
    Got a quote today for 1500 all in

    Cheers, so there should be better around.


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    #254
    steves2
    Registered Users Posts: 284 ✭✭steves2


    christy c wrote: »
    What are people paying in legal fees for switching? I was quoted €1,250 excluding VAT and outlay. About €1,900 all in.

    I intend to shop around more.

    It all depends on the solicitor, I've been quoted 1200 and that's the best in my area, a friend of mine near Naas was quoted 900 but that can rise. I'm starting the switch to KBC, will knock 1% and 3 years off my mortgage.


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    #255
    Millem
    Registered Users Posts: 7,729 ✭✭✭Millem


    deco72 wrote: »
    Would you not think about going with KBC instead on the 2.25% mortgage and €3000 cashback. It's also only a 2yr fixed rather than a 5yr. So could easily do the same again in 2yrs time if it was worthwhile.

    My ltv is higher than 60% and third baby due so thinking of fixing for 5 years.


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    #256
    christy c
    Registered Users Posts: 2,193 ✭✭✭christy c


    steves2 wrote: »
    It all depends on the solicitor, I've been quoted 1200 and that's the best in my area, a friend of mine near Naas was quoted 900 but that can rise. I'm starting the switch to KBC, will knock 1% and 3 years off my mortgage.

    Just got quoted 1200 all in after a few phone calls. Happy with that


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    #257
    BullBauld
    Registered Users Posts: 807 ✭✭✭BullBauld


    House is worth approx €220,000 with 90k left on mortgage. Probably no value switching banks but to look for better rate maybe. Currently with BOI 3.2% fixed for 3 years.


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    #258
    chases0102
    Registered Users Posts: 1,034 ✭✭✭chases0102


    Can the breakage fee vary significantly? I remember looking into this a few months back, breakage fee was about 10k.

    Just under 2 years into 30 year mortgage, 5 year BOI fixed at 3%


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    #259
    christy c
    Registered Users Posts: 2,193 ✭✭✭christy c


    BullBauld wrote: »
    House is worth approx €220,000 with 90k left on mortgage. Probably no value switching banks but to look for better rate maybe. Currently with BOI 3.2% fixed for 3 years.

    With KBC you get €3000 cashback minus costs of approx €1500 - €2000 so you'll have at least €1000 in your back pocket. Also their rate would be 2.25% if you open a current account. Don't know what it would cost to get out of your Bank of Ireland fixed rate.


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    #260
    mrcheez
    Registered Users Posts: 13,619 ✭✭✭✭mrcheez


    christy c wrote: »
    With KBC you get €3000 cashback minus costs of approx €1500 - €2000 so you'll have at least €1000 in your back pocket. Also their rate would be 2.25% if you open a current account. Don't know what it would cost to get out of your Bank of Ireland fixed rate.

    If you open the current acc do you have to use it, or can I just lodge a couple hundred and be done with it?


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    #261
    browne_rob5
    Registered Users Posts: 466 ✭✭browne_rob5


    mrcheez wrote: »
    If you open the current acc do you have to use it, or can I just lodge a couple hundred and be done with it?

    You have to pay your mortgage from it to get the lower rate. Think it's 2.45% for 2 years otherwise. You also have to lodge €2k each month to get free banking on the current account.

    I just switched all my banking to KBC. You could get your salary into KBC and pay your mortgage from there and transfer the balance to whatever bank you're using each month.


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    #262
    KilOit
    Registered Users Posts: 2,983 ✭✭✭KilOit


    Maybe someone can make sense of this.

    I'm on AIB variable 2.95% which is APRC 3.01%
    so if i switch to Ulster bank it's 2.2% which is 3% APRC

    how am i saving if i switch to Ulster bank


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    #263
    christy c
    Registered Users Posts: 2,193 ✭✭✭christy c


    browne_rob5 wrote: »
    You have to pay your mortgage from it to get the lower rate. Think it's 2.45% for 2 years otherwise. You also have to lodge €2k each month to get free banking on the current account.

    I just switched all my banking to KBC. You could get your salary into KBC and pay your mortgage from there and transfer the balance to whatever bank you're using each month.

    I also think you need to get your salary paid in to get the lower rate.


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    #264
    BBMcQ
    Registered Users Posts: 1,320 ✭✭✭BBMcQ


    KilOit wrote: »
    Maybe someone can make sense of this.

    I'm on AIB variable 2.95% which is APRC 3.01%
    so if i switch to Ulster bank it's 2.2% which is 3% APRC

    how am i saving if i switch to Ulster bank

    The APRC is advertised over the lifetime of the loan, not the fixed rate period. Ulster bank have much higher standard variables post fixed period.


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    #265
    BBMcQ
    Registered Users Posts: 1,320 ✭✭✭BBMcQ


    Folks, I think it’s super important to highlight because 9 out of 10 ppl don’t know this

    ALOT of the times it will make sense for you to break out of a bad fixed rate deal. Some people thing you are stuck in a fixed rate deal no matter what.

    We got AIB down from a near 5k breakage fee down to near 900! Now Ulster bank aren’t charging us anything to switch from their 2.6% fixed to 2.2% fixed. EU rules mean that a bank can only charge you a break fee based on what it would cost them to finance the remaining principle plus admin costs. AIB in particular weren’t following this until approx July 2019.

    It’s staggering to think of the amount of money out there being overpaid to banks on mortgages....

    Also 1500 all-in is the target price for a solicitor to switch. You don’t even need to meet them so I wouldn’t pay more for one just because their office is in D4.


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    #266
    KilOit
    Registered Users Posts: 2,983 ✭✭✭KilOit


    BBMcQ wrote: »
    The APRC is advertised over the lifetime of the loan, not the fixed rate period. Ulster bank have much higher standard variables post fixed period.
    Ah that makes sense, cheers, bit of a no brainer, savings could be put into the principle after the 5 years if i was to switch again


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    #267
    TakeTheVeil
    Registered Users Posts: 553 ✭✭✭TakeTheVeil


    For €300,000+ mortgages, any obvious reasons not to avail of EBS 2% cashback with 1 year fixed rate 2.9,...and then switch to KBC/Ulster for lower rate this time next year (other than the risk of rates increasing over the next year)?


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    #268
    brightkane
    Registered Users Posts: 2,716 ✭✭✭brightkane


    TakeTheVeil wrote: »
    For €300,000+ mortgages, any obvious reasons not to avail of EBS 2% cashback with 1 year fixed rate 2.9,...and then switch to KBC/Ulster for lower rate this time next year (other than the risk of rates increasing over the next year)?

    I am thinking this also. Currently about 18 months into a 5yr fixed with PTSB on 3.1%.
    Thinking of moving to BOI for 1 year to get 2% cashback and then if ulsterbank are doing 2.2% next year flip to that. After legals for switch to BOI and breakage fee I would have €3,700 approx.


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    #269
    Q&A
    Registered Users Posts: 554 ✭✭✭Q&A


    TakeTheVeil wrote: »
    For €300,000+ mortgages, any obvious reasons not to avail of EBS 2% cashback with 1 year fixed rate 2.9,...and then switch to KBC/Ulster for lower rate this time next year (other than the risk of rates increasing over the next year)?

    One issue I have with this.... Why wait! Get loan approved with both and switch as soon as soon as cashback is paid. Assuming cashback takes a month to process the break fee will more than likely be small or zero.


    Worst case scenario you end up waiting the year like planned. Best case 2 cashbacks in the bag and cheap rate as you head into late spring.


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    #270
    mrcheez
    Registered Users Posts: 13,619 ✭✭✭✭mrcheez


    How does the TRS monthly payment get affected by the changeover? Do I need to notify Revenue or the banks do it themselves?

    I'm going to be going over all my TRS payments made since I started the mortgage as I recall BOI were short a couple of hundred when I checked 5 years ago, I'd probably have a hard time claiming it back after I've moved.


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    #271
    browne_rob5
    Registered Users Posts: 466 ✭✭browne_rob5


    TakeTheVeil wrote: »
    For €300,000+ mortgages, any obvious reasons not to avail of EBS 2% cashback with 1 year fixed rate 2.9,...and then switch to KBC/Ulster for lower rate this time next year (other than the risk of rates increasing over the next year)?

    Sounds like a good plan and cant see a reason not to.


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