is it worth switching?

B

BONDGIRL

Registered User
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Hello all,
i am currently on a rate of 3.7 and its not looking to come down.. its not fixed. I am thinking of moving to another bank.
I have looked up a few banks and see good rates of 2.3 etc.
How much approx does it cost to switch?
What documents to you need etc?
I know getting first mortgage is a pain in the butt, so is this the same thing all over again?
Would love to hear your view.

thank you
 
I switched 2 yrs ago. Bank paid the switching fee and I didn't find it a hassle at all. Very straight forward compared to initial mortgage.
 
2.25% is the best variable rate at present so if you qualify for this then you will save approx €120 p/m for every €100k that you have borrowed. Budget approx €1500 for legal switching fees. The reality is that it is painful to switch, a lot of paperwork, but depending on the amount of your mortgage it could well be worthwhile.
 
my mortgage is 270k, so like I could be saving 240 a month?That is a lot isnt it. I see BOI website are givin 1k toward legal fees, I wonder how that works? What kind of paper work do you need?
 
You should be ok to switch then once affordability is ok.

The BOI offer, to my knowledge is €1000 towards legal fees, you must pay this back if you switch to another lender within 5 years.

The same information will be required as when getting your first mortgage.
 
Bondgirl,

Basically your LTV would 76% which would entitle you 2.45 variable rate with AIB or 2.4 for a 1yr fixed rate. If your LTV was below 50% then you could avail of 2.25% variable rate

In relation to BOI, they are giving only 1k to FTB's

The switcher market is pretty much dead in terms of offer paying for cost, but a good solicitor will do it for you for about 999 and a good broker should pay for the valuation fee for you.

I can recommend both to you if you like.
 
The 1k from BOI is only available if you go direct (not through a broker)

Money Guide Ireland
 
i think the BOI offer is for anyone switching once you stay with them for 5 yrs.. but sure like its not like I am going to switch again. Ideally that 1k should be paying for solicitor AND valuation of house.
 
If you ask the solicitor who bought the house for you they may be able to do it for less. I do it for a fair bit less than €1k for existing clients because I already know the title is in order. If it's a new client it's closer to 1k. Call your solicitor first and see what they can offer.
 
BONDGIRL said:
i think the BOI offer is for anyone switching once you stay with them for 5 yrs.. but sure like its not like I am going to switch again. Ideally that 1k should be paying for solicitor AND valuation of house.
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5 years is a long time in mortgages, what if a new lender enters the market and offer trackers again or an entirely different product. There are boffins somewhere creating the next must have mortgage offering as we speak.
 
BONDGIRL said:
Norf - your right!
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Don't worry about the 5 year clause. BOI has the lowest variable rate for your LTV - 2.4% so the 1000 towards legal fees is an added bonus. If you do decide you need to move again within the 5 years - then just consider the 1000 as an interest free loan . Moving to another lender with a higher rate and no help towards switching will just cost you more.

Best Mortgage Rates
 
never thought of it like that.. thats good.

Well I took the plunge and I rang AIB and spoke to a lovely girl and put application through and I have to come back with a few different documents. I have a person loan etc so she said its not a Yes yet but after I submit my case it could be..

I am due a call back from BOI later today..

have to say I feel great doing all that. Very proud of myself. I always feel intimidated by banks in general but like they should be begging me for my business LOL
 
Thanks Norfbank. Chuffed here..
Anyway can I ask one more Q, god people will probably know who I am at this rate LOL.
I own the house myself i.e. the mortgage, deeds etc. however my partner gives me 300 a week towards mortgage and bills. He is not on the mortgage or the new one. He will be in a yr or two when we marry but for now he aint..
Now how do I let the bank know this? or should I say its rent a room or what? we have one dependent. Its a touchy subject incase someone says why dont you just put hi mon the mortgage, but I was completely left broke by another man and it took me a few yrs to work very hard to being a proud home owner myself for the last 4 yrs and I am not risking it! My partner is competely COOL with all of this!!!!!! and I am only 30!
 
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