How do i change Lender

H

Hamek

Registered User
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37
Hi all,
could someone tell me the procedure for changing mortgage lender.

*Do we have to apply for a new mortgage from the new lender even if we are already on the property ladder. Or do we just apply to switch?

*Are they going to treat our application the same as new applicants (i.e FTB)

*Do we have to start from scratch with the new lender/do paperwork all over again. Get bank statements, get new life assurance, new home insurance, health check etc.

Or do we just provide a repayment statement from current lender and continue from there. Please advice.

Thanks
 
It will need a brand new application for a new mortgage with a new lender . You will not be treated as an FTB. There will be legal costs involved too and a valuation fee. BOI and HAlifax are paying upto 1000 euro towards legal fees. AIB also offer payment of upto 1200 if you have an account with them.
Who are you currently with and what rate are you paying?
 
Currently with EBS at a fixed rate of 5.25 or so. Paying ridiculous money at the mo considering the current interest rate drop. Have a year and a half to go on the fixed term contract. But we are just trying to get as much info as possible before hand on how to switch, who to switch too etc.
 
Have you asked EBS what penalty you will have to pay to get out of that fixed rate? It is expected that ECB rates could well fall again this week - so any penalties will be rising too.
Your first step is to find that out so you can see if switching is worth your while.
 
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Yes we have. The last time it was around 10k. We really do not know what the best step to take is. Wait till the end of the loan term, or pay the breakage fee and avail of the low rates. Really don't know.
 
OK - so to make it worth your while your repayments would need to drop by about 560 a month to make a move worthwhile.
On 5.25% with a loan of 200k (for example ) repayments are about 1200 a month. The best available rate is 2.49 - with repayments 896 - so a saving of about 300 a month.
So - uUnless your mortgage is over about 380k it will not be worth moving it for the sake of another 18 months.
 
Hi there

you seem to be very goog with all those claculations, may I seek some advice from you guys?

Mortgage:
265,000 in august 2007

3 year fixed rate at 4.99% rolling to ECB +1.1%

Lender: PTSB

Would you switch to a variable rate now or wait until I roll onto ECB tracker? (no penalty for switching to variable, I'd say they want me to give up the ECB tracker as if I do go variable the ECB tracker will no longer be available to me)

Please advice, really don't know what to do... :) Thanks all.
 
Well irishlinks, we got €285k in mortgage. Repayments €1400 monthly. So what would you advice or do if this was you. And i think ECB is dropping the rates again in the next few weeks or so
 
As I said earlier - unless your mortgage is over 380k the savings made by moving will not cover the penalty.
 
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