Better Mortgage Interest Rate without Switching?

g0g

Is the above possible? I'm currently a KBC mortgage customer for the past couple of years. Since getting the mortgage out we did a lot of work on the house which I'm sure will have improved its value, as well as the improvements in the market since then. As a result I reckon our LTV, which was >80%, could now be considerably less.

Obviously I'd rather avoid the hassle of switching bank, but am I right in saying basically I'll need to do this to get a better deal? Seem to me that easiest thing would be to get a new third party valuation and agree a new rate with the bank, but as I guessed the bank doesn't appear to be a fan of that idea! You'd think it would be in their interest (pardon the pun!) - I have a record of paying on time and they'd rather not lose the business you would think?

Also, is switching a lot of hassle? Do you need to go through life assurance and all of those things again if the new mortgage is the exact same as your current outstanding mortgage balance?

Thanks for any advice!

Heisenberg1

g0g wrote: »

Is the above possible? I'm currently a KBC mortgage customer for the past couple of years. Since getting the mortgage out we did a lot of work on the house which I'm sure will have improved its value, as well as the improvements in the market since then. As a result I reckon our LTV, which was >80%, could now be considerably less.

Obviously I'd rather avoid the hassle of switching bank, but am I right in saying basically I'll need to do this to get a better deal? Seem to me that easiest thing would be to get a new third party valuation and agree a new rate with the bank, but as I guessed the bank doesn't appear to be a fan of that idea! You'd think it would be in their interest (pardon the pun!) - I have a record of paying on time and they'd rather not lose the business you would think?

Also, is switching a lot of hassle? Do you need to go through life assurance and all of those things again if the new mortgage is the exact same as your current outstanding mortgage balance?

Thanks for any advice!

I'm with AIB and my interest rate is >80 like you my property has increased in value over last number of years however AIB will not allow me to switch to a better LTV rate. So I am going to switch to KBC check your T&C KBC may not allow a switch or give them a call best of luck.

JTMan

Tell KBC that your LTV is under 80% and ask to be moved to 3.96% APR for this bracket.

Tell KBC you will switch if they do not move you. Be strong.

g0g

JTMan wrote: »

Tell KBC that your LTV is under 80% and ask to be moved to 3.96% APR for this bracket.

Tell KBC you will switch if they do not move you. Be strong.

Tried that today. Absolutely no budge. I guess their risk is that they allow it for one and open the floodgates. Suddenly everyone near the cusp of an LTV bracket is shouting for a valuation/review. As of now my only other option is PTSB and it'll involve forms, legal cost and hassle. PTSB will give switchers € 1K but only if I move my current account which I'd prefer not do.

Trish56

Unfortunately the banks treat their loyal existing customers terribly. All reduced rates recently for new customers but not for existing customers with the exception of AIB. AIB currently offer excellent fixed rates for existing customers such as 2 and 3 year fixed at 3.80% and 4 and 5 year fixed at 3.90%.

Permanent tsb are offering €1000 to all new customers except investors this should cover your legal fees to switch also KBC offer €1000 towards legal fee when you switch to them.

If you do switch you will need to complete a new application and submit evidence of income (salary cert, P60 and 3 months payslips) 6 months bank, credit card and savings statements, 12 months statement on existing mortgage and any other short term loans. You will also have to pay approx. €150 for a valuation on the property.

There are some very good loan to value rates on offer for new customers with best value from KBC at 3.55% for a loan to value of less than 60% if you open a current account with them.

If choosing a fixed rate with a new or existing lender you need to check that when the fixed term expires that you will roll to a loan to value variable rate and not standard variable which is up to 4.50%.

You can use your existing mortgage protection cover once it covers the amount of mortgage and outstanding term.

Hope the above helps.

Trish

JTMan

g0g wrote: »

PTSB will give switchers € 1K but only if I move my current account which I'd prefer not do.

What is stopping you switch your current account? Surely, it is a double bonus of a free current account and reduced mortgage.