Is it worth my while switching mortgages?

Hi,

I've read a lot on these pages about people switching mortages here and there, but is it really worth it? Can someone help me out here?

I have a mortgage of about E118,000 remaining and 20.5 years to pay it off.
I have a Variable rate of 3.5 with AIB.
My house is worth approx. E250,000.

With all the fees\charges associated with switching mortgages, I havn't had the will to do it, but would it be a good idea?

Thanks,
Pat

Re: Is it worth my while swithcing mortgages?

Yes but it does require a bit of effort.
Search on this forum or read the best buys section to find other offers available then use this calculator to show you the difference:-

http://www.jeacle.ie/mortgage/

Banks will generally pay the solicitor fees involved in switching.

Re: Is it worth my while swithcing mortgages?

Better than going to another mortgage provide and incuring legal fees.
What you should do is contact aib and ask them to switch your mortgage to a tracker rate of mortgage which is currently 3.25% for a mortgage less than 60% of the value of your house. At a quick guess your mortage is about 47% of the total value of your house.
You might need to get the house valued.
I changed mine last year from a variable to a tracker.I am will aib and I can change back to a varible if I want with no fees etc.

You could do better Philip!
Bank of Scotland are offering 2.7% - a discounted tracker for 2 years. This is .5% better than AIB's tracker.

If you use Prima finance which I did to change mortgage they pay your legal fees and you only have to pay outlay and registry charges.I wanted a current account mortgage,rang them and asked them to give me that particualr mortgage and only paid 250Euro for outlay.Not sure if they do Bank Of Scotland mortgages though...worth a call?

packie said:

With all the fees\charges associated with switching mortgages, I havn't had the will to do it, but would it be a good idea?

Click to expand...

Packie, I had a similar ratio to yourself (but was at 3.7%) -just switched today to UB - at the moment they're offering a tracker at 0.25 off the ECB rate (which will probably go up tomorrow [gulp]) but they will also pay all those nasty legal fees.
I decided not to go with discounted vendors so I'd get no nasty surprises in the future.

I figure it's a little bit of hassle, but it's worth the extra E75 a month in my pocket rather than theirs... you may be sure I get more enjoyment out of it!