Switching Mortgage - Is this best deal I can get??

M

munsterfan

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Looking into switching mortgage provider and have done some reasearch and met with an advisor from Ulster bank. Am currently with BOI and got annoyed with them when trying to change from Variable rate to their Tracker..Too long a story:mad: for this thread...
Anyway house is currently worth about 360K (My best estimate!) with an outstanding mortgage of about 97K.
With UB we can get a tracker rate of ECB+0.95% which currently is 3.2%.Not bad considering best I can get with BOI is 3.35%. We would probably be looking to get an max extra amout of 30K-40K which is still under the 60% LTV to be able to get the ECB+0.95% rate. They would also pay for the solictor fees and here come a complicated bit..
Well kinda anyway...When I bought the house it was just my name on deeds etc. Since then my girlfriend moved in and now we are looking to get her on the deed etc. Have been informed by UB that this part will cost around €250. Must have a chat with the solictor as he is the family solictor and my father(who owns a small business) has been dealing with the firm for years so I might be able to wrangle some deal there.
Basically I am just wondering is this the best deal we could hope for or is there another bank/institution out there with a better rate than ECB+0.95% willing to pay solictors fees for transfering and cost about €250 for the extra solictor expenses.
Apologies if the thread is a bit longwinded :eek: but would appreciate any advice on this.
Cheers in advance
 
See the Irish times Business Section today, pg 19 Bank of Scotland (Ireland) offering competitive tracker mortgages. Not sure when this will be up and running but will be looking into it. Also pay €1k towards switching fees and €150 towards valaution.
 
yeah seems like a very good deal, however UB are not paying your solicitors fee's, they are designating a solicitor to carry out the legal work on your behalf, you cannot choose your own solicitor, however if your solicitor is on the panel for these deals then you can of course ask UB to instruct him/her. The €250 charge is to register the deeds in names so AFAIK its a land registry fee and therefore not a fee negotiable with your solicitor.
 
BOSi are offering a discounted tracker rate of 2.7% for 2 years, converting to a tracker rate of 2.95% where the LTV is 75% or lower. ie the mortgage amount represents less than 75% of the value of the property.

The rates for LTV above 75% are

2.95% 2 year discount converting to 3.5%
 
Molly said:
yeah seems like a very good deal, however UB are not paying your solicitors fee's, they are designating a solicitor to carry out the legal work on your behalf, you cannot choose your own solicitor, however if your solicitor is on the panel for these deals then you can of course ask UB to instruct him/her. The €250 charge is to register the deeds in names so AFAIK its a land registry fee and therefore not a fee negotiable with your solicitor.
Click to expand...
The local solictor on the panel is my solictor so I will be instructing them to use that solictor all right. About the €250 charge, fair enough if its that nothing can be done so. It was worth a think anyway :)

from the Bank of Scotland [broken link removed]
**********************************
Tracker Rate
Rate APR* (LTV) Monthly Costs per €1,000
6 month int. only period 20 Yrs 25 Yrs 30 Yrs 40 Yrs
2.70% 3.18% <=75% €2.25 €5.40 €4.59 €4.06 €3.41
(Discount period for up to 24 months)

3.25% 3.18% <=75% €2.71 €5.67 €4.87 €4.35 €3.73
(After discount period)
For loans up to 75% of the property value, the rate will be 1.00% above European Base Rate**.
Switch with no legal fees and no valuation fees.*** There’s no arrangement fee and no hassle. The whole process can be completed in just two weeks
*** Switch to Bank of Scotland (Ireland) and we will pay up to €1,000 towards your legal or title insurance costs. Title Insurance is an alternative to the traditional solicitor’s investigation of title. It is an insurance policy protecting the Bank’s interest against any defects in the title to your property, e.g. boundary disputes, planning issues and lost deeds. With title insurance, the switching process can be carried out in as little as 14 days. If you move your mortgage from Bank of Scotland (Ireland) within 5 years, you will have to repay this legal contribution.

Valuation Fees (which normally cost approximately €150) will be refunded to you on completion.
Apologies about the formatting ...coudnt get it any better :eek:

**********************************
If I am to read this right then we would get a discount rate of 2.70% for two years and then it would revert to a tracker rate of ECB+1%. Would this work out cheaper in the long run.Quick look wouldn't think so but dont know :eek: . How would you work out a split rate like that ??
 
Molly said:
BOSi are offering a discounted tracker rate of 2.7% for 2 years, converting to a tracker rate of 2.95% where the LTV is 75% or lower. ie the mortgage amount represents less than 75% of the value of the property.

The rates for LTV above 75% are

2.95% 2 year discount converting to 3.5%
Click to expand...
Molly
Where did you see this.I thought it was as follows ??
discount rate of 2.70% for two years and then it would revert to a tracker rate of ECB+1%.
By your quote above the discount tracker reverts to ECB+0.7%? Is this correct ?
 
I don't know why you want to put your girlfriend's name on the deeds. Firstly if you broke up she would be entitled to half the house
Secondly if she goes on the deeds I would imagine that she would lose her first time buyer status.
Thirdly I believe there would be stamp duty implications here even if she is not paying you any money to be put on the deeds ( value of the house*50% *stamp duty of 6%)
 
Where did you see this.I thought it was as follows ??
discount rate of 2.70% for two years and then it would revert to a tracker rate of ECB+1%.
By your quote above the discount tracker reverts to ECB+0.7%? Is this correct ?
Click to expand...

Apologies, that was a typo, yes your correct it reverts to 3.25% after discount period.
 
Art said:
I don't know why you want to put your girlfriend's name on the deeds. Firstly if you broke up she would be entitled to half the house
Secondly if she goes on the deeds I would imagine that she would lose her first time buyer status.
Thirdly I believe there would be stamp duty implications here even if she is not paying you any money to be put on the deeds ( value of the house*50% *stamp duty of 6%)
Click to expand...
Firstly she is not freeloading off me with regards the house, she is paying her fair share of mortgage and household bills, so in my opinion if we did break up she would be entitled to a part of the house anyway.
Second point is very valid, I reliase that and it might just be something we would sacrifice
Third Point I thought that FTB are excempt from paying stamp duty up to a certain limit €317,501.Have not got the house valued so dont know for definete how much it is worth but have a feeling it woud be around that all right..So there maybe stamp duty implications...
Last point. Never mentioned this earlier, probably should have is that we are also engaged and due to get married early 2007, so when that happens she would be entitled to half the house anyway....
So would it be worth while just switching providers, leave deeds the way they are but have something drawn up by solictor with regards the house ??
 
Hi munsterfan,
I'm about to do the same thing as you and was looking at either UB or BOSI as the cheaper options. If and when you make the decision to move can you update the thread with your experiences. I'd find it very helpful.
 
munsterfan said:
Firstly she is not freeloading off me with regards the house, she is paying her fair share of mortgage and household bills, so in my opinion if we did break up she would be entitled to a part of the house anyway.
Second point is very valid, I reliase that and it might just be something we would sacrifice
Third Point I thought that FTB are excempt from paying stamp duty up to a certain limit €317,501.Have not got the house valued so dont know for definete how much it is worth but have a feeling it woud be around that all right..So there maybe stamp duty implications...
Last point. Never mentioned this earlier, probably should have is that we are also engaged and due to get married early 2007, so when that happens she would be entitled to half the house anyway....
So would it be worth while just switching providers, leave deeds the way they are but have something drawn up by solictor with regards the house ??
Click to expand...

As an unmarried couple there will also be CAT (gift tax) implications in addition to stamp duty ones, as you would be in effect giving her half the value of the house ie €160K. As you are getting married next year why not wait until after the wedding to transfer the deeds into both names.

Playing devils advocate,...worst case senario you split before the wedding...you don't lose half your house! I know you have said that in your opinion she would be entitled to half etc but after a possible nasty split you might not feel that way (don't mean to be cold and calculating but in the cold light of day you could claim that the money she pays was rent). I'm all for romance and am a newly wed myself, but imo when it comes to money matters the head must rule the heart.

But in your shoes I would go through all the implications with your solicitor.
 
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