Ecb rate cut & moving mortgage to cheaper lender.

[karltimber]

Hi,

I have my variable mortgage with the EBS and they passed on the full Oct reduction last week.
IF they decide to not pass on the full amount this time (after today), can I switch mortgage to a different lender with a cheaper rate.

So, what approx fees am I looking at and does the new bank I choose pay those fees, like they were advertising 1-1.5 years ago.
Is it worth the hassle on a sub 80k mortgage ?

Thanks
K

 

[popol]

Hi,

I have my variable mortgage with the EBS and they passed on the full Oct reduction last week.
IF they decide to not pass on the full amount this time (after today), can I switch mortgage to a different lender with a cheaper rate.

So, what approx fees am I looking at and does the new bank I choose pay those fees, like they were advertising 1-1.5 years ago.
Is it worth the hassle on a sub 80k mortgage ?

Thanks
K

As it happens I'm just off the phone to them. I have a var and a buy to let var and a regular savings account. Through my negligence I hadn't realised that they only passed on the Oct increase on the ordinary mortgage but not the buy to let. They haven't made a decision on today's cut yet for buy to let. I think it's a cheap stunt that has pushed me over the edge.

The savings account is going tomorrow and I'll start shopping around for 2 new mortgages next week. In the overall scheme of things it mightn't make much difference but at least I'll feel better and I'll expect to save some money as well.

 

[raven]

As it happens I'm just off the phone to them. I have a var and a buy to let var and a regular savings account. Through my negligence I hadn't realised that they only passed on the Oct increase on the ordinary mortgage but not the buy to let. They haven't made a decision on today's cut yet for buy to let. I think it's a cheap stunt that has pushed me over the edge.

The savings account is going tomorrow and I'll start shopping around for 2 new mortgages next week. In the overall scheme of things it mightn't make much difference but at least I'll feel better and I'll expect to save some money as well.

Cheap stunt is right. We bail these bums out with our tax euros, and this is their typical cynical customer "focus".
I can't encourage you enough to vote with your feet, - you'll be making two of us feel better.

 

[irishlinks]

Halifax have the lowest variable rate at 4.9% currently - closely followed by AIB at 5% - both with fairly high LTVs and Halifax are still offering about 1000 euro towards switching costs.
Both promised today to pass on the latest ECB cut to customers.

BOI have a rate of 5% if your LTV is below 50% and they pay towards switching too.

 

[yop]

Interesting thread this.
We have a mortgage of 212k and savings averaging around 17k linked. We are saving on average 100 euro per month with this offset mortgage.
Worked out that we will save over the 25 years 30k euro in or about.

Now I wonder if fixed rate mortgage would be better. Interst rate with offset has gone up this month, not down!!!
It 5.65% so I am wondering if a cheaper product would be better.

Any thoughts

 

[irishlinks]

Interesting thread this.
We have a mortgage of 212k and savings averaging around 17k linked. We are saving on average 100 euro per month with this offset mortgage.
Worked out that we will save over the 25 years 30k euro in or about.

Now I wonder if fixed rate mortgage would be better. Interst rate with offset has gone up this month, not down!!!
It 5.65% so I am wondering if a cheaper product would be better.

Any thoughts

In the current environment of dropping rates - I wouldn't fix right now. Maybe get on one of the lower variable rates and lower your LTV by using some of the 17k to pay a bit off. (Unless you are going to need it all soon)
Variables could be at 4.5% next month with some lenders.

 

[karltimber]

Good stuff folks.

What are the general switching costs involved - solicitor, eng to calculate house value ?

Thx

K

 

[irishlinks]

Good stuff folks.

What are the general switching costs involved - solicitor, eng to calculate house value ?

Thx

K

You're looking at anything from 1k to 2k from a solicitor and 100 to 175 for valuation. It would only be worth your while moving an 80k mortgage if you get some or all those fees covered - ie with Halifax or BOI . I think they cover legal fees in full if you use their solicitor or get Title Insurance.

 

[keeptabs]

You're looking at anything from 1k to 2k from a solicitor and 100 to 175 for valuation. It would only be worth your while moving an 80k mortgage if you get some or all those fees covered - ie with Halifax or BOI . I think they cover legal fees in full if you use their solicitor or get Title Insurance.

Moving a mortgage (80K or so) to a new lender for the sake of 0.25% or so is hardly worth the hassle... you will have to rearrange new life cover , home ins , payment protection cover etc... the cost of these new insurances could end up costing you a net increase in your monthly repayments... not to mention maybe switching your current account. The relationship and access to an experienced staff member at your Bank or BS should be considered... some lenders will not switch mortgages for free unless you owe 80K or so... look at all the monthly costs as well as your overall relationship..

 

[NorfBank]

Moving a mortgage (80K or so) to a new lender for the sake of 0.25% or so is hardly worth the hassle... you will have to rearrange new life cover , home ins , payment protection cover etc.

On the contrary you should review your mortgage protection on an annual basis and you may find that you can actually save on this. If not your lender may be happy with your existing life cover.
Your home insurance will probably have dropped as house prices have dropped.
You don't need payment protection cover for a mortgage although your bank may have sold it to you.

 

[keeptabs]

On the contrary you should review your mortgage protection on an annual basis and you may find that you can actually save on this. If not your lender may be happy with your existing life cover.
Your home insurance will probably have dropped as house prices have dropped.
You don't need payment protection cover for a mortgage although your bank may have sold it to you.

Disagree completely here...
if you took out life cover 5 or 6 or even 10 years ago with the Bank (most likely with group scheme) age and health risk will mean a higher premium for the new policy..
House Insurance costs vary based on the level of cover... so yes its possible to get a cheaper premium.. but perhaps not for the same level of cover.. the reinstatement value is what is insured... not the houses market value..
Payment protection of course is optional... but why cancel a protection policy in such times of economic uncertainty... I only wish I could avail of that type of cover.. but as I am self employed... I cant make myself redundant..
its worth considering the overall package of swithcing...sometimes its better the Devil you know..

 

[NorfBank]

if you took out life cover 5 or 6 or even 10 years ago with the Bank (most likely with group scheme) age and health risk will mean a higher premium for the new policy..
House Insurance costs vary based on the level of cover... so yes its possible to get a cheaper premium.. but perhaps not for the same level of cover.. the reinstatement value is what is insured... not the houses market value..

Life premiums have come down in the last few years plus the new mortgage will be over a shorter term plus you may get discounted mortgage protection through a broker. As I said if the new mortgage protection quote is higher than your current one, the new lender will accept the old policy, it may not even need to be assigned.
I accept your point about reinsurance costs but again due to competition house insurance quotes have also fallen.

 

[keeptabs]

Life premiums have come down in the last few years plus the new mortgage will be over a shorter term plus you may get discounted mortgage protection through a broker. As I said if the new mortgage protection quote is higher than your current one, the new lender will accept the old policy, it may not even need to be assigned.
I accept your point about reinsurance costs but again due to competition house insurance quotes have also fallen.

New lender will / may accept the exisiting policy... but its likely that the Mortgage protection policy will die with the mortgage if its with EBS (group scheme) as postre stated... Life cover premiums have not come down that much, even if the term is shorter the age and possible health risks will more than likely counter balance the cost of the premium..
the main reason to switch your mortgage should be based on saving (substantially) on your monthly repays... at 80K for a 1/4% or so... its just as likely that the cost will be the same and possibly more... thats not including the hassle of sorting out new policies DDs and collections of premiums... discounts on life and House tend to be short lived regardless of who offers them.. plus the risk of chosing an inferior House Policy in terms of cover and excess etc.. should not be ignored..
If you have received bad poor or negligent service from your lender over a prolonged period...switch... if its your 1st gripe with them.. talk to them and weigh up the options... dont forget once you switch you are tied for usually 5 years... if you pay off early or switch again... you pay back the legal fees to the bank...

 

[popol]

You're looking at anything from 1k to 2k from a solicitor and 100 to 175 for valuation. It would only be worth your while moving an 80k mortgage if you get some or all those fees covered - ie with Halifax or BOI . I think they cover legal fees in full if you use their solicitor or get Title Insurance.

AIB have offered me 1,200 toward the costs. I have to stay for 5 years or pay this back - all very reasonable I think. I'm pulling together the costs at the moment but it looks like I will push ahead as soon as I can. I did some rough comparisons at the weekend and the potential savings on my repayments would appear to be 93 a month - very significant.

The biggest problem with switching is the hasstle and as another poster said if it is your first gripe then the best advice might be to talk to them and reach an agreement. In my case it isn't as I just think they are bad value at the moment apart from their failure to pass on rate cuts