Switching With 100,000 Mortgage

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Niall-1980

Registered User
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Hi All. I am currently with PTSB on a variable mortgage at 3.7% and 17 years left, monthly payments are roughly 638 I think. I am looking at switching now. I could do with a bit of a steer. Im thinking of switching 2 or 3 times to avail of the Cash back and finish on a lower rate.
I have spoken to my solicitor and he is cool with whatever I decide and will charge 1,100 a switch.
The order I was thinking of switching In was as follows.
KBC variable 3.0% and 3,000 cash back
AIB variable 2.75% and 2,000 cash back
Ulster Fixed 2.3% for 2 years and 1,500 cash back.
Those this look like the right order.

I have 2 big questions,
1/ Do Ulster require you to be 6 months with your previous provider?.
2/ Am I wrong to be burning my bridges with AIB for the sake of .45%,considering the have a free Current account and generally pass on low variable rates.

Current account savings etc all with PTSB, annoyed now over new current account charges.

All advice greatly appreciated.

what would you do in my position?.
 
Niall-1980 said:
1,100 a switch.
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Plus VAT and valuation?
Total c. 1,483

Any idea what kind of bank charges you would have? Mine would be c. 160 per year if I didn't have free banking, and that's a joint account.

Vs 450 interest savings on lower rate.
 
Hi Red

No that was 1,100 including the vat I think.
No idea what bank charges would be. I will keep x amount in the account to avoid charges if I have to.
who would you switch to etc if you were me
 
I fully understand the idea of switching multiple times. But you're switching to make small net cashback after fees, and not getting best rate immediately unless you're very organised.

I'd keep it simple. Switch once to UB (2.3% for 2 years, or 2.6% fixed for 4 years) or KBC (2.65% fixed for 5 years, if you switch current account as well).

Multiple switching really makes sense if it's for 2% cashback on a large balance.
 
I was thinking the same as you about all the hassle and keeping it simple. I would be turning down roughly 2,000 net when all is said and done?. Would it really be much hassle to make 2,000. If I was to Switch just once would I not be better off switching to AIB, as I wouldn't be tied into a fixed and would have 2.75% vs 3.7% and free banking as the offer free banking with a mortgage?.
 
Niall-1980 said:
I would be turning down roughly 2,000 net when all is said and done?
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Sorry, you are correct.
I had calculated a much lower number than 2k in my head, and assumed you're on KBC variable rate for a few months.

If you just switch to KBC, it's 3k cashback. Roughly 1500 net. That's the bulk of your 2k.
AIB is 500 net
And UB pays for itself.

If you go KBC and then to UB, but it takes 6 months, you've paid an extra 350 in interest. It's only worthwhile if you can do all the switches quickly and cleanly.
 
Which bank / rate do you want to end up with?

If you want to end up with KBC, just switch there.
If UB, go KBC first, but make sure you can switch again quickly.
 
See I can't move quickly if I go KBC first as Ulster require 6 months with existing bank I wonder would the waive that.
 
Well, other posters have done it, particularly by having approval for both up front.

Personally, I think the 2.6% over 4/5 years is as good as 2.3% over 2. Maybe better.
The wholesale funding markets have priced the same difference into swap rates, and you're getting certainty for a longer period.

If you think you're going to be able to repay quicker, go UB. You can pay off more without calculating a break fee.

4/5 years from now the mortgage market will be different, so I wouldn't assume that the banks with better rates now will be the best when your fix ends.
 
Red Onion always gives very good advice so follow him. I have been a big supporter of the multiple switches but as Red Onion said its only really great when you have a large balance like me €300k so the 2% was €6000 each time. If you want to switch fast then apply for all the mortgages at the same time. This way UB will think you have been with PTSB all the time. Switch to KBC , first then AIB and then UB . Once you get your first mortgage drawn down switch right away (within a week) you will still get your cash back . Tell your solicitor not to register any mortgage until the final one with UB, this keeps the switching process easy and fast.
 
Sean Og said:
Red Onion always gives very good advice so follow him. I have been a big supporter of the multiple switches but as Red Onion said its only really great when you have a large balance like me €300k so the 2% was €6000 each time. If you want to switch fast then apply for all the mortgages at the same time. This way UB will think you have been with PTSB all the time. Switch to KBC , first then AIB and then UB . Once you get your first mortgage drawn down switch right away (within a week) you will still get your cash back . Tell your solicitor not to register any mortgage until the final one with UB, this keeps the switching process easy and fast.
Click to expand...

All good advice and greatly appreciated thanks guys
 
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