Moderator's note: This thread was created in 2016 but as of late 2022 it is still highly relevant (especially this first post). I have added comments under some of the points based on more up-to-date information.
Ignore any references to specific interest rates, as they are out of date. Instead, consider posting your mortgage details in the switcher thread (in the format shown in the first post). You will get estimates of the savings you would make from switching to different lenders (or to another rate with your current lender).
Some lenders and brokers have smartphone apps and/or portals on their websites, which make the mortgage switching process easier. You can upload all of the requested documents and send messages to the lender/broker.
OK a moderator created this thread from a comment I made on another thread. So I might as well make it something relevant.
I'm switching at the moment. It's a pain but it's not rocket science so I'll put down what my bank asked me for and what you probably need to be thinking about if you're thinking about switching. I'm half way through a switch so this may not be complete as my bank may think of new interesting questions to ask me.
1: Get a solicitor. This is easy. Ring around your local guys and ask them their fees for covering a switch. I got quoted €800. I haven't completed my process yet so I'll update this when I actually pay this. Your bank will ask for your solicitors name and address. Edit: At the end of this process I got an invoice for €948
Moderator's notes from late 2022:
2: They'll want bank statements. I was asked for the last 6 months for myself and my wife. So make sure your accounts are tidy enough for at least 6 months.
One bank I applied for searched all of their accounts for my name and queried me about an account that my name was attached to for a company account. I had assumed this wasn't relevant at all. It was to him. So if in doubt, ask your advisor.
3: They'll want credit card statements. Having some debt on your credit card is not hugely bad unless it's at the limit and never paid off. In my situation we're 10 years into our repayments and our situations have improved so I think we're more attractive for an underwriter. The advisor said that having a debt on a credit card just means they'll take off something like 2 times (don't quote me on that, it was so small that I didn't care) the debt from the max amount you could borrow. As we should be well below the max amount we can borrow plus I only had a couple of hundred debt on my card I didn't care too much about it.
4: They'll want salary certs for all applicants. Your employer will sign this no hassle. If you're in probation forget about applying anywhere. Just wait until the probation period is over.
Moderator's note:
5: They'll need statements for your mortgage. I was asked for the last two years original statements. This is easy to get. Just ring your old mortgage company.
6: They'll need copies of passport & driving license.
7: Utility bills showing a name of each applicant. This was a bit of hassle as all the bills are in my name at home. It's not too hard to fix though. I just contacted a provider and added my wifes name to a bill. It's not something that happens immediately though so if you're applying and youre in the situation I was in ring your Gas or Electricity or Internet provider today so your next bill will be the one you use.
8: Property valuation. They'll want somebody they know to value your house. This cost me €95 and the guy came out and did it in 20 minutes. Note: for your initial application (before approval) you don't need a valuation but you should have a ball park figure of what your property is worth. Use the property register to find properties in your area that may have sold recently.
Moderator's note:
9: Deed of assignment of life policy. You have to tell your life insurance that your switching to a new bank. I just rang my insurance company this morning about this. They said they just need a letter from the bank and that this is no problem.
Moderator's note:
10: Notice to your house insurance that the new bank has an interest in your house. This is a form that the bank provided me.
11: Direct debit mandate. For repayments.
12: Once the mortgage has gone through keep a track of your deeds. I rang my new bank a couple of months after the mortgage was completed. They didn't have the deeds. I rang the old bank who said they sent them on. I rang the solicitor and they told me that they're "pending before the land registry which will take six months". This wasn't information that was given to me. Had to go chasing.
13: You may need a NPPR [non-principal private residence] cert. If you owned the property between 2009 - 2013 you'll have to apply to your local council for this. It's free but it's a pain in the hole too. You have to send in letters / bills from 2009 - 2013 to prove you lived in your house.
14: My solicitor asked for a valid BER cert. I don't know why but they wouldn't budge so if you have one, keep it handy. You shouldn't really be asked for this though. Ask your solicitor at the start of the process so if they say you'll need it you will know if you need to go to somebody else.
Moderator's note:
15: My solicitor asked for proof that Irish Water was paid up to date. They were, but this was another thing I had no clue why there were asking for it. Moderator's note: no longer relevant.
Ignore any references to specific interest rates, as they are out of date. Instead, consider posting your mortgage details in the switcher thread (in the format shown in the first post). You will get estimates of the savings you would make from switching to different lenders (or to another rate with your current lender).
Some lenders and brokers have smartphone apps and/or portals on their websites, which make the mortgage switching process easier. You can upload all of the requested documents and send messages to the lender/broker.
OK a moderator created this thread from a comment I made on another thread. So I might as well make it something relevant.
I'm switching at the moment. It's a pain but it's not rocket science so I'll put down what my bank asked me for and what you probably need to be thinking about if you're thinking about switching. I'm half way through a switch so this may not be complete as my bank may think of new interesting questions to ask me.
1: Get a solicitor. This is easy. Ring around your local guys and ask them their fees for covering a switch. I got quoted €800. I haven't completed my process yet so I'll update this when I actually pay this. Your bank will ask for your solicitors name and address. Edit: At the end of this process I got an invoice for €948
Moderator's notes from late 2022:
- Look for an "all-in" quote (including VAT and outlays) of €1,300 or less
- When talking to a potential solicitor, ask them if everything can be done by post and email. If so, you will not need to go to their office and you will be free to use a solicitor who does not live in your part of the country.
- Cheapest solicitor for switching mortgages
- Low-cost solicitors for remortgage
- 1200 euro for switcher conveyancing - keep looking?
- Before you hire a particular solicitor, confirm with them that they are prepared to give undertakings to the lender in relation to the transfer of your mortgage protection policy, etc.
2: They'll want bank statements. I was asked for the last 6 months for myself and my wife. So make sure your accounts are tidy enough for at least 6 months.
One bank I applied for searched all of their accounts for my name and queried me about an account that my name was attached to for a company account. I had assumed this wasn't relevant at all. It was to him. So if in doubt, ask your advisor.
3: They'll want credit card statements. Having some debt on your credit card is not hugely bad unless it's at the limit and never paid off. In my situation we're 10 years into our repayments and our situations have improved so I think we're more attractive for an underwriter. The advisor said that having a debt on a credit card just means they'll take off something like 2 times (don't quote me on that, it was so small that I didn't care) the debt from the max amount you could borrow. As we should be well below the max amount we can borrow plus I only had a couple of hundred debt on my card I didn't care too much about it.
4: They'll want salary certs for all applicants. Your employer will sign this no hassle. If you're in probation forget about applying anywhere. Just wait until the probation period is over.
Moderator's note:
- You will be able to get approval in principle (AIP) with some lenders even if you are on probation, but you won't be able to complete the switch until your probation is over
- That being said, some lenders will let you complete the switch while you are still on probation. This seems to be the case when your loan-to-value and loan-to-income ratios are low, or when your new employment is considered very secure.
5: They'll need statements for your mortgage. I was asked for the last two years original statements. This is easy to get. Just ring your old mortgage company.
6: They'll need copies of passport & driving license.
7: Utility bills showing a name of each applicant. This was a bit of hassle as all the bills are in my name at home. It's not too hard to fix though. I just contacted a provider and added my wifes name to a bill. It's not something that happens immediately though so if you're applying and youre in the situation I was in ring your Gas or Electricity or Internet provider today so your next bill will be the one you use.
8: Property valuation. They'll want somebody they know to value your house. This cost me €95 and the guy came out and did it in 20 minutes. Note: for your initial application (before approval) you don't need a valuation but you should have a ball park figure of what your property is worth. Use the property register to find properties in your area that may have sold recently.
Moderator's note:
- As of late 2022 the valuation costs €150 or €185, depending on the lender
- Some lenders have very wide loan-to-value (LTV) brackets, and so the property valuation you end up getting only matters if you think you are on the border between two brackets (or if you are thinking of asking for a topup in the future).
- AIB only have three LTV brackets: an LTV below 50%, an LTV between 50% and 80%, and an LTV over 80%
- E.g., if your mortgage balance is €324k and you think your property is worth €400k, your estimated LTV is 324k/400k = 81%. You will be eligible for better interest rates if you can get into the "LTV<80%" bracket, either by reducing your mortgage balance by a small amount or by getting a slightly higher valuation. This is worth trying to do.
- Other lenders have narrower LTV brackets, e.g., LTV<60%, LTV<70%, LTV<80%, and so it is more likely that you will be on the border between two brackets, making the valuation you get more important
9: Deed of assignment of life policy. You have to tell your life insurance that your switching to a new bank. I just rang my insurance company this morning about this. They said they just need a letter from the bank and that this is no problem.
Moderator's note:
- As far as I know, it is actually the new lender's responsibility to contact the insurance company to instruct them to re-assign the life policy
10: Notice to your house insurance that the new bank has an interest in your house. This is a form that the bank provided me.
11: Direct debit mandate. For repayments.
12: Once the mortgage has gone through keep a track of your deeds. I rang my new bank a couple of months after the mortgage was completed. They didn't have the deeds. I rang the old bank who said they sent them on. I rang the solicitor and they told me that they're "pending before the land registry which will take six months". This wasn't information that was given to me. Had to go chasing.
13: You may need a NPPR [non-principal private residence] cert. If you owned the property between 2009 - 2013 you'll have to apply to your local council for this. It's free but it's a pain in the hole too. You have to send in letters / bills from 2009 - 2013 to prove you lived in your house.
14: My solicitor asked for a valid BER cert. I don't know why but they wouldn't budge so if you have one, keep it handy. You shouldn't really be asked for this though. Ask your solicitor at the start of the process so if they say you'll need it you will know if you need to go to somebody else.
Moderator's note:
- It is not clear if switchers need a BER cert in all circumstances (I don't believe they do)
- But to switch to a "green mortgage", you must have a BER cert for your property with a rating of B3 or higher
- The BER cert must be less than 10 years old
- Some lenders may let you use your old BER cert if it is only slightly out of date
- If you bought a newly constructed property, you may have a provisional BER cert, which is only valid for 2 years instead of the usual 10 years
- Check if your property already has a BER cert by entering your MPRN (shown on your electricity bill)
- Also check with your current lender and solicitor to see if they hold your BER cert
- If you need a new BER cert (or if you have never had one), shop around for a low-cost BER assessor
- Consider using https://www.bercert.com/ to get quotes
- But also search using Google and Facebook, etc.
- There is no guarantee that you will get a B3 (or better) rating, so before arranging an assessment consider whether or not you are likely to get the rating you need
- If you don't, you will arguably have wasted the money
15: My solicitor asked for proof that Irish Water was paid up to date. They were, but this was another thing I had no clue why there were asking for it. Moderator's note: no longer relevant.
Last edited by a moderator:
