Does ICS discriminate between new and existing customers?

Brendan Burgess said:

Hi Gordon

The 3.5 times income test is used only to approve or reject a loan.
I would have no problem with a lender incorporating the LTI in setting their rates, but I don't think any of them do. (I have an idea that some lender does not offer all rates to people who get an LTI exemption, but I can't remember which one.)

Avant uses both LTV, and for the One Mortgage, the mortgage term. So a 15 year loan is cheaper than a 30 year loan with the same LTV. But I think that is the only non-LTV criterion used for setting rates.

Brendan

Click to expand...

Yes, that makes sense.

I was thinking more of the conditions that a lender such as Avant applies for 1.95% cases, such as the property being in an urban area. Avant could in theory buy some mortgages from Ulster Bank and then refuse to allow internal switches to 1.95% for properties in Leitrim.

I think there may be something in the questions that were being asked by the lender. i.e. that there may be something in the responses that meant the borrower wouldn’t qualify for the lower rates if he or she was external. For example, overstretched in some other way.

The 1.95% rates seem to be reserved for “super-prime” cases externally, so why not internally also? It shouldn’t necessarily be the case that once a borrower is through the gates that it becomes a free-for-all.

I have been away for a bit with Covid and only getting back to looking at this now.

I haven't contacted ICS yet but just had another look at their website today and they appear to have changed the Ts & Cs for existing customers to avail of the lower rates available. At least I have not seen this before. I cant seem to attach the direct link to the direct page.

Hi pg

That is great news. Definitely a change of policy.

Existing Mortgage​

If you are an existing customer, you can opt to change to a new fixed or variable rate if you prefer. This will depend on the balance of your mortgage and the number of years left on it.
If the balance on your mortgage is at least €100,000 and you have 5 years or more remaining, you can avail of our new business variable or fixed rates. Please note that if you are currently on a fixed rate, you may be charged a break fee if you change rates before your fixed term has ended. For details as to how our fixed rate breakage fee is calculated click here.
If the balance on your mortgage is below €100,000 or you have less than 5 years remaining, you can avail of our new business variable rates. Again, please note that if you are currently on a fixed rate, you may be charged a break fee if you change rates before your fixed term has ended.
If you are also looking to change your LTV bracket, -a new valuation will be required for your property.

Great news indeed.

@Brendan Burgess I guess ICS needs to go back into the Best Buys table!

And they show here how they calculate the break fee. Note that the break fee could be up to 20% lower than it would be with other lenders because they won't apply the break fee to your unused annual overpayment allowance. (Your annual overpayment allowance with ICS is 20% of your outstanding mortgage balance.)

I have a 5 year fixed mortgage with ICS at 2.6%. took it out in Sep 2020. would it be worth enquiring if I can get the new rate in my position. thanks for any advice

Dublin85 said:

I have a 5 year fixed mortgage with ICS at 2.6%. took it out in Sep 2020. would it be worth enquiring if I can get the new rate in my position. thanks for any advice

Click to expand...

As an existing customer the only cost of enquiring is the price of a phone call.

Even the most expensive rate is .1% lower than what you're paying now. After the cost of the phone call the only material expenses would be a potential break fee (could be zero) and possibly a new valuation of you think you might be able to get a lower rate based on a new LTV.

Only after knowing the break fee (and ltv) can you really start assessing your options.

Great advice. thanks very much

@Dublin85 If you post your mortgage details (outstanding balance, LTV, month and year when you fixed) in the other thread, somebody will give you an estimate of your break fee.

thanks Paul.