Lump sum and switching

T

thos

Registered User
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Hi all,
I’ve got a 400k mortgage on a 500k property, with approx 31/32yrs remaining. I’ve got 200k to put towards reducing the mortgage so I’m also considering switching in order to get better rate at more favorable LTV. Mortgage is with EBS AT 3.57% variable.
I can see both AIB and Haven doing 2.75%.

Is it likely to be any easier switching between EBS and either of AIB/Haven given the ownership?
Any typical legal / other costs I should consider?

Thanks
 
There shouldn't be any difference switching to AIB compared to any other bank. You'll have less paperwork switching to where your main bank account is, but that's just a matter of bank statements. Even though you're staying in the AIB group, EBS will have to release title deeds, and it could take 12 weeks for a straight forward case. So pay off the lump sum to get benefit.

Costs are legal fees (around 1200+vat, but get a quote from a few solicitors), and a valuation from someone on approved panel (130+vat).
AIB will pay you 2k towards your switching costs.

Current trends, if you want to stay variable, AIB looks best bet. The last rate change it took a while before they announced Haven reduction.

If you want to fix, look at other options in the best buy thread. https://www.askaboutmoney.com/threa...e-the-lowest-mortgage-rates-available.205864/

Edit: @Brendan Burgess option will leave you better off!
 
Last edited:
Thanks guys.

Interesting! I hadnt figured out the overall effective rate like that for BoI. I was expecting to take advantage of a better LTV (<50%) when switching, but struggling to really read the BoI rates to figure it out.

My thinking is to switch to a 10yr term on 200k, and hopefully still look at overpaying to bring that down further, so I'm assuming variable is my only real option here. It looks like BoI cap overpayments (10%) and AIB talk about early breaks with fixed overpayments.

I'll talk to both and see how it works out.

Are EBS likely to do anything to try and retain an existing customer?
 
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