Switching Mortgage

Hi,
First i am in new in this forums.

I got the mortgage with First active around 4 month ago with 6.65 inital interest rate. After they dropped to 4.95% with the changed of new ECB rates. Also they sent me the letter that my TRS will not be changed as its supposed to 166 to 208.

I am thinking to switch the mortgage to Aib . Reason to get some money and save on repayment .

Aib is offering 3.81% on internet .

Could u pls advice me the best option

j_unaid said:

Also they sent me the letter that my TRS will not be changed as its supposed to 166 to 208.

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I don't understand this. What is the term and amount of your loan?

Could u pls advice me the best option

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If you can get a better long term deal (not just an attractive introductory new business/switcher rate that may rise later and no longer be competitive) elsewhere net of any remortgaging/switching costs then go for it.

hello , Thanks for reply.

my current mortgage term is 35 years and loan is 281500 and i am paying 1411 - trs (166) = 1234 .

Please advice me thanks

just to let you know regarding the trs,
most of the banks have been unable to put in the new trs rules into practice.
they were unable to amend their systems in time, they have agreed this with the revenue, and thus meaning if it is not correct now, by about march or april the banks will have the systems updated and they will then amend the trs and backdate any trs due.
as you have found out first active are one of those banks.
so they are not ripping you off or trying to cheat you, they just didnt have enough time, and will amend it later.

Thanks rameire, You are very helpfull . Could you please give me some advice to switching mortgage for getting better interest rate with different banks like AIB or permanent tsb.

One thing that I think many people may be overlooking on TRS is that with the cumulative ECB rate cut of 1.75%, the FTB 10k interest ceiling will no longer be reached by many people where previously it might have been (unless it's a 'large' mortgage), so 2009 TRS could fall, even for those recent FTB's whose rate has increased from 20% to 25%.

id check with aib on monday morning,
ask them how long the rate lasts for, cause it might be just an introductory rate for one year and will then increase after a year.
to switch your going to have to pay solicitors fees, most banks are getting people to pay for their own valuation now so that will be an extra cost, but if your val was done in the last year it should still be valid, just ask first active for a copy of it.
i know first active are not selling any trackers anymore, but they are offering fixed rates, although they might offer better fixed rates if the rate changes again, which it more than likely will.

you could ask to speak to the retentions team in first active and tell them of your plan to move, and see what they say.

Thanks again , I will check with First active tomorrow and update you .

One thing i like to mention here that my interest rate was initally 6.65% and on the offer letter its say i will increased 1% in 2nd year .

my current rate is 4.95% because of ECB cut.

hello , need an advice i am paying ecd + 2.40% at first year discounted it will increase to ecb+3.4% at the end of my 1 year what will i do. Check with bank not helpfull at all

What is your loan to value? Are you able to make the repayments if it goes up, you were paying a higher rate (6.65) before? If you are on a discounted rate how come it dropped from 6.65 to 4.95. I though discounted rates had a fixed term. Can you confirm your actual rate now not just ECB + .

Hi i have with ECB + 2.4% at the moment

On the inital contract its saying.

Mortgage account number xxxxx
Loan Type TPI Roll Off ECBR+2.40% for term 95% LTV Capital and interest
Internet rate €6.65
Loan amount 281520
Interest type Variable
Term 35 year
Monthly Loan repayment €1729

If your loan to value on drawdown was 95%, it is more than likely to be even higher than 95% now so unfortunately you will not be able to switch lenders. You should arrange a meeting with a mortgage advisor in First Active to go through your options.