Has anyone actually switched banks to avail of a lower rate?

The Central Bank has told me that only 30 people a month are actually switching. I am astonished by this.

It would be good for everyone if those who can switch, do switch. If lenders realise that 99% of borrowers can't overcome their inertia, then they won't implement serious rate cuts.

The only completed case I have found on Askaboutmoney is

I switched from BoI to KBC

Has anyone else actually switched their mortgage yet?
 
Just curious...
  • Do the CB actually know how many people switch each month? If so - how? Are lenders obliged to report stats on this - every month?
  • Is there a possibility that large numbers of people simply don't realise (a) when they are getting a poor deal and (b) that switching may be an option for them?
 
Haven't switched yet but AIB have offered me 3.8% SVR, LTR 60%. Currently with PTSB on SVR of 4.5%.
Interesting to see what my LTV will get me with PTSB's new rates but, even if I was offered 3.7%, I'd move. Can't wait to be shot of PTSB.
 
HC2015 said:
Haven't switched yet but AIB have offered me 3.8% SVR, LTR 60%. Currently with PTSB on SVR of 4.5%.
Interesting to see what my LTV will get me with PTSB's new rates but, even if I was offered 3.7%, I'd move. Can't wait to be shot of PTSB.
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Hi HC2015, I'm with you-as soon as overdraft sorted I'm moving from parasitic PTSB.We've endured years of ridiculous rates where,because we were held captive, we had to pay much more than customers of the other state-owned bank, AIB.Hopefully all those affected in the same way have long memories.I for one won't take their few pieces of silver.
 
Hi Brendan, just currently finalising our move from ptsb to Ulster Bank. Were on 4.5 %, moving to 3.8%, now find out could have got 3.7 with perm tsb, haven't heard if UB going to go any lower,but was so fed up with perm tsb that I don't even care, glad to see the back of them, gave them plenty of warning that I would move!
 
Hi All
we were all set to move from KBC to Ulster Bank a couple of months ago but have been hanging on to see what the banks came up with
currently paying 4.3% on a 300k loan, our LTV is 80%, UB offered us 4%
seems like its currently still the best SVR option for us although BOIs fixed rate with the 2% cashback sweetener is interesting
v disappointed with KBC's attitude, they are not interested in negotiating at all
I suspect they feel lots of their customers arent in a position for whatever reason to switch so dont care
 
I would've switched a few months back if the political campaign hadn't started up which has encouraged me to wait and see what happens. I'm sure there are others also waiting. Having said that, switching is hassle and expensive - if the govt really wanted to encourage competition in the market they would make it easier and cheaper.
 
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Brendan Burgess said:
What could the government do to make switching easier?
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Develop some sort of standardised "switching pack" to reduce the costs? I know some of the banks are offering cash to pay legal fees but thats at their discretion - e.g. AIB are offering nothing so switching to them is probably not a runner regardless of their rates.
 
I haven't switched yet. Paying Boi 4.2 variable rate. I'm not sure if we can switch as my wife is on state maternity. She intends to return to work in January. I changed jobs in February and now work for my brother in law in a secure job , my Father originally set up the company 30 years ago.

I bought in 2012 at a really good price and same house has just gone up for sale a few doors down at a huge increase generating lots of interest.
 
Zane99 said:
I haven't switched yet. Paying Boi 4.2 variable rate.
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Have you asked BoI for a better variable rate?
Or checked their fixed rates? (e.g. 3.6% fixed for 2 years if LTV < 80% - with the usual caveat about fixing being inflexible and being a gamble when rates might fall further...).
What is your LTV?
What rate were you looking at with other lenders?
 
I've a LTV of 70%. Called Kbc yesterday and they offered 3.66 and I see there legal fee offering went up from €1,000 to €2,000.

I haven't called BOI yet. Not sure what to do ? Fix with BOI or switch altogether.
 
That 3.66% from KBC is the variable APR with the current account discount?
That's 3.6% nominal which is the one to use for comparison here.
That's the same rate from BoI but you have to fix for 2 or 3 years.
Some people think that rates might fall further in the coming months e.g. in the September timeframe - but nobody knows really.
And KBC have a habit of getting new customers in on relatively attractive rates but then once captured they don't let them move to lower rates when these become available for new customers.
 
Yes that's correct. It's if I switch an account to them
Also BOI wrote to me. Their two year fixed rate is 3.9 APR.

I haven't contacted BOI yet. Kbc looks attractive tho.

I will save €58 a month. But if I move to them I could still pay my current mortgage payment and be overpaying my mortgage by €58 cause it's variable.

Still not sure what to do .
 
Forget about APR here - compare the nominal rates.
The BoI 2/3 year fixed rate for somebody on < 80% LTV is 3.6% which is the same as the variable rate on offer from KBC.
But bear in mind the issue about KBC possibly gouging existing customers compared to new customers once they get them in.
My understanding is that BoI allow you to pay a max of €60 p.m. capital without penalty when on a fixed rate (a grand total of €720 p.a. ).
No easy answer here as far as I can see.
You could wait and see what, if any, further rate movements there are in the c. September/budget timeframe....
 
ClubMan said:
My understanding is that BoI allow you to pay a max of €60 p.m. capital without penalty when on a fixed rate (a grand total of €720 p.a. ).
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I assume you mean that BOI only allow a borrower to overpay (as against the agreed scheduled principal repayments) by €60 per month when on a fixed rate.

There is obviously nothing stopping a borrower agreeing a shorter loan term when switching or agreeing a split variable/fixed rate LTV mortgage and making additional principal payments against the variable rate loan.

I see no logical reason to hold off on making a switching decision. Sure, rates and incentives could improve in the future but they could just as easily dis-improve and in the meantime a borrower will needlessly be making higher interest payments.

Nobody knows in advance whether fixing a mortgage rate at 3.6% (as against opting for a variable rate of 3.6%) will turn out to be the right decision. The truth is it probably won't make a world of difference either way but, if it was my decision, I would opt for the variable LTV rate.
 
Sarenco said:
I assume you mean that BOI only allow a borrower to overpay (as against the agreed scheduled principal repayments) by €60 per month when on a fixed rate.
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Yes - that's why I said overpay by €60 without penalty. Any more than that and you're into fixed rate breakage penalty territory. That's what they told me recently.
I see no logical reason to hold off on making a switching decision. Sure, rates and incentives could improve in the future but they could just as easily dis-improve and in the meantime a borrower will needlessly be making higher interest payments.
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Not even how KBC treat customers once they have them inside the tent?
 
ClubMan said:
Yes - that's why I said overpay by €60 without penalty. Any more than that and you're into fixed rate breakage penalty territory. That's what they told me recently.

Not even how KBC treat customers once they have them inside the tent?
Click to expand...

Sorry, I don't mean to be pedantic but you actually said that BOI only allow you to "pay a max of €60 p.m. capital without penalty when on a fixed" - I assume BOI allow (and expect) fixed rate borrowers to make whatever scheduled principal repayments have been agreed at the time the loan is advanced plus a max of €60 p.m.

The competitive pressure that prevents all lenders from charging excessively high rates on outstanding variable rate loans is the possibility that borrowers will simply refinance their loans at a cheaper rate with another lender. If I had a reasonably low LTV, I would be fairly confident that I could switch mortgage provider again in the future if I took the view the rate offered by KBC was no longer competitive.

Holding off switching to a cheaper rate simply means that borrower is paying a needlessly high interest rate while waiting for a better deal to come along. That better deal might never materialise or, if it does, it may not materialise quickly enough to compensate for the additional interest paid during the intervening period.
 
Yes - that's what I meant. I thought that I said "overpay" but I was wrong.
 
Would be grateful for any advice on the following:

I have 14 years remaining on a 25 year BTL mortgage with BOI. I am coming off a 3 year fixed term shortly and considering BOI's penal interest rates, I am considering my options. Considering that I will be paying off mainly capital amounts in the remaining 14 year term is it worth considering switching mortgage provider at this stage? My understanding is that in the early years of the loan, repayments go disproporionately towards the interest element of the loan. Also, does anyone have have recommendations for possible BTL mortgage providers?
 
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