Switch just before paying off mortgage?

njburke

New Member
Messages
3
Hi,
I'm with AIB and have will have 6.5 years and 70K left on my original 20 year 200K mortgage in March, monthly repayments are 1150.
Between savings and an inheritance I will have enough to pay off mortgage , saving myself approx 8K in interest at the current rate of 3.15% over the remaining term of the mortgage.

Is it worth my while to switch to say KBC, who offer a flat 3K as cashback for switching ?
AIB and KBC have the same rate, 3.15% so there is no difference monthly payments

I assume if I switch to KBC standard variable there is no lock in or minimum term I must spend with KBC before I redeem the mortgage.

N
 

Sarenco

Frequent Poster
Messages
5,765
Well, I guess you would have your solicitor's fees and outlay, plus whatever value you place on your own time...

But you could pocket around €2k net, with minimal effort.

Importantly, the bank to which you switch cannot legally impose any minimum term or lock-in - if you switch to a variable rate mortgage you are entitled, by law, to pay it off whenever you want without penalty.
 

thespecialon

Frequent Poster
Messages
202
Does anyone know if theres min loan amount,I can't see anything on kbc..I'm in similar boat have 50k or so remaining on a tracker but have the funds to clear if I wanted..
 

Sarenco

Frequent Poster
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5,765
Why not borrow the minimum amount and pay it off the following day?
 

njburke

New Member
Messages
3
Thanks for all the replys, I'll apply to KBC and contact my solicitor to get an estimate of costs.

N
 

Sean Og

Frequent Poster
Messages
170
Why not switch to PTSB for 2% cash back then EBS for 2% cash back then BOI for 2% cash back then KBC for €3k then AIB for 2k, as someone earlier said why not get as much as you can so your cash back will be more. Borrow say €150000 and get €3k in cash back from PTSB, EBS, BOI and KBC and €2k from AIB and even UB for €1500 legal fees. You are in a great position, get a Solicitor on board and away you go. Follow the cash back discussions on here for my advise and advise from others. You have an opportunity to make some nice easy money here probably over €10,000. Just go for a variable rate each time because you are switching within days. I know you only have a small balance but borrow as much as you can so your cash back is greater and then at the final mortgage just pay off the excess and get your mortgage back down to €65,000 and a better rate .
 

michaelm

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Messages
1,670
While it all sounds fine and dandy it seems a bit like clowning to me. Maybe you'll make a couple of grand net of solicitor fees and ongoing interest but switching mortgage is a hassle too. If I had the means to clear my mortgage I'd just do it and be done. I reckon they'll reject your application if they see you have the funds to clear it.
 

Sean Og

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Messages
170
While it all sounds fine and dandy it seems a bit like clowning to me. Maybe you'll make a couple of grand net of solicitor fees and ongoing interest but switching mortgage is a hassle too. If I had the means to clear my mortgage I'd just do it and be done. I reckon they'll reject your application if they see you have the funds to clear it.
I like a few more here switched 3 times in 6 months and received €18000 in cash backs. Take away €2000 for the solicitor fees i am very happy to have €15/16,000 in my back pocket. I am a public sector worker paying the higher rate of tax. I would have to earn €32,000 to get €16,000 so i certainly don't think it's hassel. If you know an easier way of making money Michaelm i'd love to hear it. If people don't want thousands of euro well then that's their choice.
 

njburke

New Member
Messages
3
Well, I certainly be doing it at least once, and the flat fee paid by kbc is the most attractive. The other banks pay 2% upfront with a further 1% some time down the road. So realistically I'ld need to up my borrowings to see significant returns. I'ld also need a solicitor who is keen on repeat business.
I'll let you know, I'm heading into the banks tomorrow.
N
 

Sean Og

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Messages
170
No need to go into any banks, just apply online or call them. What i have started to do in preparation for round 2 of my switching journey is to scan and save all my documents on my PC. So i have all my payslips and my wife's payslips, bank statements, P60's, Utility bills and forms of ID all saved and ready to go a the press of a button. It's all about getting organised and ready to go when the time is right. My 12 months with EBS is up now in December so i am getting ready to go again. People are far too lazy, if you have a perfect credit rating and good solid incomes then it's simple.
 

Dauhee

Frequent Poster
Messages
117
While it all sounds fine and dandy it seems a bit like clowning to me. Maybe you'll make a couple of grand net of solicitor fees and ongoing interest but switching mortgage is a hassle too. If I had the means to clear my mortgage I'd just do it and be done. I reckon they'll reject your application if they see you have the funds to clear it.
do you have the same sentiment for employment? yeah you earn money but its a hassle getting out of bed :) good point about them having visibility into having the money to pay off
 

michaelm

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Messages
1,670
Not too many people will be in the same position as Sean Og, carrying a big mortgage but strong numbers re approval. Methinks Sean is more organised, calculating and meticulous than the average bear. Deft financial choreography and a co-operative and competent solicitor are also required. It will be interesting to hear whether the banks baulk second time around.

I switched to UB a few years ago for cash back and lower rates. My solicitor was useless and had to be lead through the process by the nose. Given my situation it was a minor miracle getting approval at all.

My original response related to the OP's situation rather than the caper in general. Banks aren't all that interested in small mortgages and I don't believe they will lend retail customers much more than they need. Which is why, if I'm the OP, I just clear the mortgage and work on. I don't believe they can wring anything like €10k net out of their situation. Happy to be proven wrong, hope they report back after.
 

Sean Og

Frequent Poster
Messages
170
Not too many people will be in the same position as Sean Og, carrying a big mortgage but strong numbers re approval. Methinks Sean is more organised, calculating and meticulous than the average bear. Deft financial choreography and a co-operative and competent solicitor are also required. It will be interesting to hear whether the banks baulk second time around.

I switched to UB a few years ago for cash back and lower rates. My solicitor was useless and had to be lead through the process by the nose. Given my situation it was a minor miracle getting approval at all.

My original response related to the OP's situation rather than the caper in general. Banks aren't all that interested in small mortgages and I don't believe they will lend retail customers much more than they need. Which is why, if I'm the OP, I just clear the mortgage and work on. I don't believe they can wring anything like €10k net out of their situation. Happy to be proven wrong, hope they report back after.
Hi Michaelm i am getting better as i go along, i wasn't always as organised but the more you do the more you learn. I now scan all my payslip and save them onto my PC, i download bank statements and Credit card bills and save them in folders in my PC. I also have my Drivers Licence and Passport pictures saved onto my PC. Same with my Electric bill as proof of address and last years mortgage statement also saved. I have only started doing this in the last 3 months since i started looking to switch my CC debt to new 0% offers on balance transfers. I can now do a complete application for mortgage and Credit card in about 20 minutes max. It is really brilliant because you just bang out the applications and see how you get on. BTW Bank Of Ireland have now refused me twice for a Credit Card. I must appeal and get a reason from them.
Yes my mortgage is large and worth while switching and i have a great Solicitor but just get everything in order and into one folder on your PC if possible and away you go .
 

candyman

Frequent Poster
Messages
158
Hi Michaelm i am getting better as i go along, i wasn't always as organised but the more you do the more you learn. I now scan all my payslip and save them onto my PC, i download bank statements and Credit card bills and save them in folders in my PC. I also have my Drivers Licence and Passport pictures saved onto my PC. Same with my Electric bill as proof of address and last years mortgage statement also saved. I have only started doing this in the last 3 months since i started looking to switch my CC debt to new 0% offers on balance transfers. I can now do a complete application for mortgage and Credit card in about 20 minutes max. It is really brilliant because you just bang out the applications and see how you get on. BTW Bank Of Ireland have now refused me twice for a Credit Card. I must appeal and get a reason from them.
Yes my mortgage is large and worth while switching and i have a great Solicitor but just get everything in order and into one folder on your PC if possible and away you go .
Second that, being organised is key to doing this without wrecking your head.

I switched 3 times in 5 months, took the profit, then walked in and paid off the mortgage in full. So to answer the OP, go for it, its totally worth it.
 
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