How or can you switch Mortgage Provider cost effectively?

[widescreen]

Folks,

I have a variable rate investment mortgage with PTSB which is seven years into a 25 year payment period.

Still owing around €130k.

As usual when rates go up you start thinking so would appreciate if anyone could answer a couple of questions for me.

1.Can I switch the mortgage to another provider without major cost to me?

2. If so, what would generally be the procedure briefly.

thanks

 

[G123]

From my recent dealings with mortgage lenders I don't think there are any 'sweetheart' deals out there at the moment even if you are a traditional "good risk" - i.e. lender paying legal fees.

My situation was
- a rental property that had been on an interest only deal for 5 years
- lender refused to extend beyond this time so, as per Mary Harney's old advice I shopped around.
- given that I was looking for a 50% ltv and have an unblemished lending record I thought I could get a good deal.

No such luck. I'd be interested to hear other people's experiences.

 

[LDFerguson]

Cost of switching a residential property mortgage is around €1,200 being €150 or so for the valuation and €1,050 for the legal costs. These costs can vary. You'd need to work out if you'd recoup this in lower interest by switching.

While you may be able to get a better rate than Permanent TSB now, if it's a variable rate you've no guarantee that the lender you switch to won't hike up their rates in the future as tracker variable rates can't be got any more.

Fixed rates are easier to compare but you'd still need to know that you've more than recouped your switching costs within the fixed rate period as you've no idea what competitive positions will be like thereafter.

Liam D. Ferguson

 

[widescreen]

Cost of switching a residential property mortgage is around €1,200 being €150 or so for the valuation and €1,050 for the legal costs. These costs can vary. You'd need to work out if you'd recoup this in lower interest by switching.

While you may be able to get a better rate than Permanent TSB now, if it's a variable rate you've no guarantee that the lender you switch to won't hike up their rates in the future as tracker variable rates can't be got any more.

Fixed rates are easier to compare but you'd still need to know that you've more than recouped your switching costs within the fixed rate period as you've no idea what competitive positions will be like thereafter.

Liam D. Ferguson

Thanks. I suppose the kudos built up with current lender are worth something. Just to clarify procedure,if you did switch do the new provider take on your existing loan and remaining term, or do you start from scratch again, ie get house revalued and apply for another mortgage?

 

[Bronte]

Thanks. I suppose the kudos built up with current lender are worth something.

What kudos? Anyone who is able to repay a loan is going to be the one's hit with the higher interest rates. All banks are going to come after borrowers who have been prudent, have not overborrowed and can afford to make higher repayments. Those that have not are going to get payment holidays, interest only deals and penalties waived etc.

When you switch you should think about is as being a new mortgage, you can pick whatever term they agree to. In your case I would recommend reducing the term if you can afford to make the repayments.

 

[pjmn]

BOI seem to have a current offer of paying E750 towards legal cost of moving - may be worth investigating ....

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I've checked websites of AIB, UB and NIB but they don't appear to have any specific offer in relation to your query...

 

[widescreen]

BOI seem to have a current offer of paying E750 towards legal cost of moving - may be worth investigating ....

[broken link removed]

I've checked websites of AIB, UB and NIB but they don't appear to have any specific offer in relation to your query...

thanks for that. I made an online enquiry-not answering phone! so will wait and see what they have to say.. cheers

 

[irishlinks]

BOI seem to have a current offer of paying E750 towards legal cost of moving - may be worth investigating ....

[broken link removed]..

That BOI offer applies to residential mortgages only - the poster has an investment mortgage.
Regarding switching costs - it should be similar to residential costs (I think)


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