Anyone successfully remortgaged from high (First Active)to lower interest (AIB) bank?

[bluebug33]

Has anyone successfully switched from First Active / other high interest rate lender to a lower interest rate bank?

There was an interesting article about this in Sunday Times (Escape from the zombie lenders, page 13, Money Section on 15th Feb)

First Active rates are not very competitive and I'd like to consider switching, but the Sunday Times articles implies banks are not interested in new customers

I currently owe 155K on the mortgage and I have 23 years left. I'm just finishing up a 2 year fixed rate with FA of 4.8%.

The current market value (according to DAFT) could range from 230K -280K and is based in county Dublin.

I'm looking to remortgage with AIB on their 10 year fixed rate on a 20 year mortgage. I am a public servant and in a permanent position, have no other loans and a good credit history.

Has anyone successfully switched lately? Are the banks putting through remortgages?
ta for any info.

 

[LDFerguson]

Re: Anyone successfully remortgaged from high (First Active)to lower interest (AIB) b

Lenders are still lending, albeit being very strict about paperwork. If your income qualifies you for the loan, you can still borrow. I'd question the wisdom of fixing for 10 years, but you didn't ask for an opinion on that.

 

[bluebug33]

Re: Anyone successfully remortgaged from high (First Active)to lower interest (AIB) b

Lenders are still lending, albeit being very strict about paperwork. If your income qualifies you for the loan, you can still borrow. I'd question the wisdom of fixing for 10 years, but you didn't ask for an opinion on that.

Hi LDFerguson,

My take home is approx 2,800 per month (less from March thanks to the Pension Levy), mortagage is €870 pm, and I avail of the rent-a-room scheme (300 pm), so I think I look good on papar (going to meet the bank in the next two weeks, so we'll see!).

In terms of fixing, I'm relatively conservative, and something like the AIB 10 year rate works out lower than my current rate and is manageable for me.
I am not convinced interest rates will stay low in the future -I remember the 1980s and very high interest rates which would cripple me. (I admit this may not be a very rational approach - but I don't like gambling, I'd rather fix, and know what my obligations are.)

Interestingly, the ST article quoted a mortgage broker (for what that is worth) who is fixing for 10 years. I had already decided to do this myself- wasn't swayed by the article

What are your thought on 10 year fixing? As Yeats would say 'all changed, changed utterly.'

 

[LDFerguson]

Re: Anyone successfully remortgaged from high (First Active)to lower interest (AIB) b

Hi bluebug33,

I agree with your approach to fixing - you're comfortable with the repayments and looking for the security of knowing what they will be for ten years. Personally, I believe this is a far better approach than someone who fixes in an attempt to get a better rate than variable over the same period. Long-term interest rate prediction is virtually impossible.

However, you should check out the flexibility of your chosen fixed rate. Typically, fixed rates don't allow you to redeem your mortgage within the fixed period without penalty. Your ability to make early repayments is also restricted, or with some lenders, prohibited.