tommyryan55
Registered User
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Best contact Irish Life directly rather than asking PTSB about your current policy.
I recently had to get replacement cover for a new mortgage, Irish Life underwriting are experiencing delays at the moment.
Best contact Irish Life directly rather than asking PTSB about your current policy.I am in the process of switching from PTSB to AIB.
The AIB are now requesting to get a proof from PTSB that life cover from IrishLife could be moved to AIB if paid in full.
It's difficult getting in touch with PTSB and will take another few weeks until I get this document.
I wonder is it possible to just get a new Life cover? And can we usually cancel the old life cover with IrishLife without any penalties?
Many thanks.
Thanks for this info.Best contact Irish Life directly rather than asking PTSB about your current policy.
I recently had to get replacement cover for a new mortgage, Irish Life underwriting are experiencing delays at the moment.
If you are happy with your current policy then try and keep it, I have switched mortgage twice with the same policyThanks for this info.
Do you recommend getting a new policy?
Hi All,@masterboy123 You are always entitled to pay off a lump sum, even when you are on a fixed rate, but to do so you have to pay a break fee.
However, right now the break fee is zero for you (and that is also the case if you switch to another lender).
The best option option for you looks to be AIB's 2.15% green rate, fixed for 5 years. It comes with €2,000 cashback. You will be better off by about €6,500 in five years' time (versus staying with PTSB), and that's after accounting for switching fees.
If your LTV is below 70%, you could also consider Avant's 2.05% rate but it doesn't offer any cashback, so AIB looks like a better bet. That's unless you think your LTV will be below 60% in the near future. If it will, you may be able to switch to a lower rate with Avant at that point. But remember that interest rates might have risen by then.
Note that somebody on this forum said that you need to be with your current lender for at least 2 years before Avant will let you switch to them. Maybe approach an Avant broker and see if you can confirm that that is true.
What do you think your LTV is right now?
Let's ignore the costs (solicitor's fees and valuation fee) and the cashback for the moment.I don't know if I am doing the calculations right, but the difference in monthly payments is only €46 (€2760 in 5 years). I thought it would be a bigger amount. Although I signed up for AIB Green rate 2.15% but at the end of agreement it says APR* 2.63%.
I was fixed with PTSB at 2.95%
If someone could shed light please.
Thank you once again for explaining me with the graphs. And guess what the monthly numbers are almost spot on!Let's ignore the costs (solicitor's fees and valuation fee) and the cashback for the moment.
Before you switched, your mortgage repayment schedule looked something like this. And now it probably looks something like this. (These figures are approximate because I don't know your exact balance and the remaining term of your mortgage, either before or after the switch.)
Over the next five years you would have paid €21,681 in interest to Permanent TSB (adding up the first 5 entries in the "Interest" column), but you will only pay €15,639 in interest to AIB over the same period – a saving of about €6,040.
A chunk of those savings goes into your pocket, by means of a lower monthly repayment. The other chunk effectively pays down your mortgage faster: notice how your mortgage balance will be almost €3,000 lower with AIB compared to PTSB after 5 years.
Like the guy in the ad years ago, "I don't understand APR!"One thing still remains unclear. AIB documents say APR is 2.63% and not 2.15%
Does this matter? As PTSB APR was 2.95%. So I wonder if I am only down from 2.95% to 2.63%
I read somewhere that you can pay lump sum with AIB fixed rate without being penalised. I can't seem to find that thread anymore.Ask them what the break fee is.
Brendan
That's very helpful info, thank you.@masterboy123 Ask yourself if paying off a lump sum from your mortgage is the best use of the money.
Your priorities should usually be:
in approximately that order.
- Paying off expensive debt
- Building up an emergency fund in a savings/current account (3 to 6 months' living expenses)
- Saving money for any expenses you will have over the next few years (kids; childcare; adult children going to college, etc.)
- Maxing out your pension contributions (very large tax relief is given)
- Overpaying your mortgage (or possibly investing, but only if your investment horizon is at least 5 years, ideally 10)
In my case, AIB told me that they didn't need their interest noted on my mortgage protection policy, but confirm it with them.It's over a month since I left PTSB and I am with AIB now. However, PTSB is still have interest on IrishLife mortgage protection. I had to make several calls so hopefully it will be sorted out this week.
My question is do I have to put AIB assignment now on IrishLife?
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