Is changing mortgage provider possible?

W

Whatstracker

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Hi Guys,

I'm currently with PTSB and i find their varibale rate (6.05%) almost has me to the max that i can afford. I'll probably manage another 0.5% increase before i really start to struggle. Is changing mortgage provider a thing of the past? Or do i have to carry on with PTSB for life of Mortgage.
House is not in negative equity if that makes any difference.

Thanks.
 
Theroretically you can certainly change your mortgage provider. Practically it may prove difficult. You will be assessed according to the current loan to value and repayment criteria which are significantlly more onerous since the commencement of the credit crunch. Also you will be offered the variable rate as applies to the new institution. Including cost of transfer/legal fees etc you will find that any saving is likely to be limited even if you were accepted. On the positive side interest rates are now more stable with some possibility of a reduction in the next 3/6 months.
 
44brendan said:
Theroretically you can certainly change your mortgage provider. Practically it may prove difficult. You will be assessed according to the current loan to value and repayment criteria which are significantlly more onerous since the commencement of the credit crunch. Also you will be offered the variable rate as applies to the new institution. Including cost of transfer/legal fees etc you will find that any saving is likely to be limited even if you were accepted. On the positive side interest rates are now more stable with some possibility of a reduction in the next 3/6 months.
Click to expand...

Bear in mind unless you have a tracker, banks are under no obligation to pass through any interest rate reductions
 
44brendan said:
Theroretically you can certainly change your mortgage provider. Practically it may prove difficult. You will be assessed according to the current loan to value and repayment criteria which are significantlly more onerous since the commencement of the credit crunch. Also you will be offered the variable rate as applies to the new institution. Including cost of transfer/legal fees etc you will find that any saving is likely to be limited even if you were accepted. On the positive side interest rates are now more stable with some possibility of a reduction in the next 3/6 months.
Click to expand...

Thanks for your reply, i'd prefer no move from ECB either way because if the reduced now and increased by same amount 6 months later im sure PTSB would only apply the increase :(

ClubMan said:
If you cannot move from PTSB then you should check out other options for easing the burden - e.g. ...
Click to expand...

Thanks! Fortunatley im nowhere near as badly off as some people out there. Just curious about my current options in case things worsen.

Mpsox said:
Bear in mind unless you have a tracker, banks are under no obligation to pass through any interest rate reductions
Click to expand...

Yes this is what i expect in current climate.

Thanks for all the replies.
 
Whatstracker said:
Hi Guys,

I'm currently with PTSB and i find their varibale rate (6.05%) almost has me to the max that i can afford. I'll probably manage another 0.5% increase before i really start to struggle. Is changing mortgage provider a thing of the past? Or do i have to carry on with PTSB for life of Mortgage.
House is not in negative equity if that makes any difference.

Thanks.
Click to expand...

I'm in a similiar situation to yours i.e. I'm trying to move from ptsb. I went to a broker and he told me that one of the few banks lending at the moment is KBC so he has submitted an application on my behalf to this lender - I'm still awaiting a response - I'll let you know the outcome if and when I hear news.
In the meantime I heard that NIB is a possibility but this bank doesn't operate through brokers so I am considerring approaching the bank myself. Again, I'll keep you posted.
 
I was in with NIB today and I was told that they are taking on switchers as long as their LTV is < 70%. My LTV is in and around that figure but I would need to have a valuation done on the property to be sure.

Btw, NIB is about to increase its standard variable rate by almost 1%.
I have already posted on this topic in another thread so I now won't repeat myself here.
 
I received news today from the broker that I have been fully approved for a mortgage with KBC bank.

I will almost certainly be accepting this offer and probably going with their standard variable rate of 4.5%. and hoping for future reductions in the ECB rate.

One advantage of KBC is that it is allowing me to put some of my savings against the mortgage and thereby reduce the amount outstanding.

Also, the offer is not subject to a valuation of the property although the property will have to be valued later as part of the 'switching' process.

The valuer's and legal fees will come to around 1100 euro so it will be about a year before I benefit financially from the switch. However, over the remaining nine or so years of the mortgage I should see some financial gain.

Anyway, for the moment, it's goodbye ptsb, hello KBC!
 
KBC are one of the few lenders who are actively looking for re-mortgage business at the moment. They'll allow a small amount of short-term debt (€40,000) to be refinanced but no credit card or overdraft debt. You can split the loan so that if you are refinancing a short-term loan, you can have this part of your mortgage over the same term rather than paying it over a much longer term which would not be a good idea.

Maximum is 80% of property's current value. All existing mortgages and loans need to have a perfect payment record (no late payments) and the current account statements also need to be perfect - no referral fees.

KBC also have their re-draw facility - you can make overpayments at any time but can re-draw them later if you need them.

As jas376 says, the cost of switching is about €1,100 - €1,200 so you'd need to be sure you're going to recoup this in lower repayments before making the move.

Liam D. Ferguson
 
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