Gordon Gekko
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If Ulster Bank are exiting the Irish market, perhaps they’ll waive break-fees enabling people to move to the likes of Avant?
Avant Money launches a new mortgage today from < 2%
- Thread starter Deeks1
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Just spoke with an Avant broker.
We have exactly €100k outstanding over 5 years with AIB.
He said it wouldn't be worth switching this amount because of the fees involved. He said, "I know I'm doing myself out of business in saying that."
He also said that it would be best for us to reduce the term to 3 years, if we can afford to, and leave our mortgage at AIB's variable rate rather than incurring the cost of switching to their fixed rate. Food for thought for those considering Avant with small amounts outstanding. He did add that if we were considering re-mortgaging, to build an extension for example, this would involve legal fees, and switching to Avant would then be worthwhile.
There are honest brokers out there!
D.
We have exactly €100k outstanding over 5 years with AIB.
He said it wouldn't be worth switching this amount because of the fees involved. He said, "I know I'm doing myself out of business in saying that."
He also said that it would be best for us to reduce the term to 3 years, if we can afford to, and leave our mortgage at AIB's variable rate rather than incurring the cost of switching to their fixed rate. Food for thought for those considering Avant with small amounts outstanding. He did add that if we were considering re-mortgaging, to build an extension for example, this would involve legal fees, and switching to Avant would then be worthwhile.
There are honest brokers out there!
D.
Brendan Burgess
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Hi Dinarius
Do you mean that there is only 5 years left on your mortgage or that you are in a fixed rate for 5 years?
I assume it's that you have 5 years left and so would agree with the broker that it's not worth switching a "small" mortgage with only a short term to go.
Brendan
Coldwarrior
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Keep the term the same just make overpayments to the same level as if the term remaining was 4 years.
Thanks.
Would never have thought of that.
What is the reasoning/logic behind lump sums rather than a reduced term? (I'm clueless, of course!)
Many thanks.
D.
Brendan Burgess
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Key Post - "Overpaying my mortgage - should I reduce the term or the monthly repayment?"
This question comes up in a variety of ways and the threads often go off topic with irrelevant calculations. The interest charged each year is exactly the same - we will return to this. Reducing the repayment is simply reducing the payment you are contractually obliged to make under your...
www.askaboutmoney.com
Coldwarrior
Registered User
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Thanks.
Would never have thought of that.
What is the reasoning/logic behind lump sums rather than a reduced term? (I'm clueless, of course!)
Many thanks.
D.
Doesn't have to be a lump sum, you can set up a monthly overpayment to match what the payment would be if the term was 4 years. The main benefit is you have the flexibility to stop the overpayment any time and go back to the lower original monthly repayment, which you wouldn't have if you reduce the term. Could be important if someone lost their job etc, it could help prevent them falling into arrears.
Another question on this.......
After the good advice received here back November, we applied for the <50% LTV varialble rate of 2.75% and were put onto it after filing a valuation report. We also increased our repayment slightly so that the mortgage will be cleared in exactly 4 years.
We have just now received our annual statement offering LTV fixed rates of as low as 2.35% (LTV <50% for 3 years), which we would qualify for.
Is it worth fixing for the additional 0.45% interest rate saving?
(These rates also require a valuation report, but I presume that the one we had done two months ago would cover us.)
Many thanks.
D.
After the good advice received here back November, we applied for the <50% LTV varialble rate of 2.75% and were put onto it after filing a valuation report. We also increased our repayment slightly so that the mortgage will be cleared in exactly 4 years.
We have just now received our annual statement offering LTV fixed rates of as low as 2.35% (LTV <50% for 3 years), which we would qualify for.
Is it worth fixing for the additional 0.45% interest rate saving?
(These rates also require a valuation report, but I presume that the one we had done two months ago would cover us.)
Many thanks.
D.
@Dinarius
You wouldn't need a new valuation, as yours is so recent.
Personally, I'd fix, and save 400 in interest.
Have a read of the following thread on how AIB calculate break fees once you fix. Basically, they would have to drop their 2 year rate below 2.35% before they could charge you a break fee.
You wouldn't need a new valuation, as yours is so recent.
Personally, I'd fix, and save 400 in interest.
Have a read of the following thread on how AIB calculate break fees once you fix. Basically, they would have to drop their 2 year rate below 2.35% before they could charge you a break fee.
Calling AIB customers who fixed before the latest fixed rate cuts in September 2020
Any customer currently on their 3 or 5 year fixed rates can break for free, and refix now at the lower rates. This is because of an extra calculation that AIB do looking at their own interest rates, so because they provide 2 & 4 years rates higher than the existing 3 & 5 year rates, they cannot...
www.askaboutmoney.com
Hi all.
I'm thinking of taking advantage of the Avant mortgage rate of 1.95% and moving from AIB. I've been on to the Avant broker in my area and I meet all the requirements to move. He's saying to me I need to consider the cost of the solicitors fees and how long it would take to redeem that.
I have €190,000 left on my AIB mortgage at a rate of 2.55% fixed. I've been told by AIB I can break out of my fixed term mortgage at no cost. The mortgage rate with Avant is 1.95%.
I am just wondering could people tell me generally what they were charged for solicitors fees for moving mortgage providers? I see quotes on here of €1500 - €2000. Is that the cheapest I'd get them?
And finally the broker mentioned that Avant might start paying the solicitors fees from this year to move to them. Has anyone else heard this?
Thanks
Paddy
I'm thinking of taking advantage of the Avant mortgage rate of 1.95% and moving from AIB. I've been on to the Avant broker in my area and I meet all the requirements to move. He's saying to me I need to consider the cost of the solicitors fees and how long it would take to redeem that.
I have €190,000 left on my AIB mortgage at a rate of 2.55% fixed. I've been told by AIB I can break out of my fixed term mortgage at no cost. The mortgage rate with Avant is 1.95%.
I am just wondering could people tell me generally what they were charged for solicitors fees for moving mortgage providers? I see quotes on here of €1500 - €2000. Is that the cheapest I'd get them?
And finally the broker mentioned that Avant might start paying the solicitors fees from this year to move to them. Has anyone else heard this?
Thanks
Paddy
@Padjo2007
Yes, around 1500 for legal fees is as cheap as you'll get. The 'professional fees' is the variable bit and you won't get much lower than 800 + VAT. Everything else is fixed charges for registrations, searches, etc.
What's your LTV? Don't discount the idea of moving to KBC if you can get a rate of 2.25% + 3k cashback. It could work out less overall than moving to Avant.
Yes, around 1500 for legal fees is as cheap as you'll get. The 'professional fees' is the variable bit and you won't get much lower than 800 + VAT. Everything else is fixed charges for registrations, searches, etc.
What's your LTV? Don't discount the idea of moving to KBC if you can get a rate of 2.25% + 3k cashback. It could work out less overall than moving to Avant.
This thread suggests that you can find solicitors who will do a switch for €1,000 all in. @Padjo2007 If you get quotes, it would be great if you could post them here and in that thread.
As @RedOnion mentioned, the KBC 2.25% rates with €3k cashback would leave you better off than a move to Avant – by about €1,500 over the next three years by my calculations.
Interesting! If Avant offered €1,500 to cover legal fees, KBC and Avant would be about the same for you over the next three years. But you'll be losing out in the meantime by staying with AIB while you wait for this offer (if it ever materialises).
I'd be a little more specific and say that if you plan to fix for 7 years, then Avant is better.
If fixing for 3 years, we've no idea which lender will be offering the best rate at the end of that period.
HollowKnight
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I heard this from a broker recently as well. Same broker also said they'll likely change the amount you can overpay whilst on the fixed rate (currently 1%). They didn't have a timeline for these changes to be implemented.