Existing EBS customer @ 3.5% - should I switch ?

D

darraghdog

Registered User
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115
Hi Folks,

I am an existing EBS customer and have split my mortgage, 50/50 between fixed and variable interest rates. The variable portion is 105K Euro and I am paying 3.5% interest on this. I have seen that there are much more attractive interest rates on the market (eg. 3.1% NIB ECB tracker LTV<60%).

By switching I estimate I would save ~ 420 Euro per year (of course, declining yearly with the size of the mortgage), and I understand the cost of such a change would be one-time ~1500Euro.

Is this a no-brainer ? And any advice on how to handle such a switch, and also where I could get best value on a mortgage ?

Thanks,
Darragh.
 
What is the fixed rate that you are on? What will the penalties be for breaking the fixed rate part of your loan? Will you recoup these by switching to a cheaper lender?
 
Hi Clubman,
It's actually only the variable portion that I want to switch to another provider. The total variable protion is 105K. EBS issued two seperate mortgages- one fixed, and one variable.
Just btw, the fixed rate I got was 10yrs@4.99, it was last year.
Thanks,
Darragh.
 
darraghdog said:
Hi Clubman,
It's actually only the variable portion that I want to switch to another provider.
Click to expand...
I doubt that you can easily (or at all) have two mortgage lenders with an interest in the one property so I don't think that this is a runner. I'm open to correction on this though.
EBS issued two seperate mortgages- one fixed, and one variable.
Just btw, the fixed rate I got was 10yrs@4.99, it was last year.
Click to expand...
Wow! You'll presumably face some penalties on that if you find it necessary to break the fixed rate period for some reason in the future?
 
Clubman is right - you can't have two different lenders on one property so you'd have to pay the penalty for breaking the fixed rate to switch. Sorry.

Sarah

www.rea.ie
 
Hi Guys,
Thanks for the advice... I had assumed they were two mortgages on the one property but I guess Clubman is right. Thanks again for the quick answers.
Darragh.
 
They may be two mortgages from a single lender but having two mortgages from different lenders is not possible according to Sarah W.
 
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