BoI reducing variable rates for existing customers

jethrothe2nd

BoI seem to be making some efforts to try and keep people looking to switch.
I am currently on a variable rate of 4.25% with a LTV of around 60%. I have had some level of discussion with them, and without even having a new valuation carried out they have proposed a new rate of 4.1%.

Having said that, it's still way off what I can get elsewhere, so I won't be taking them up on it, but there does seem to be some movement in general

Arbiter of Good Taste

jethrothe2nd wrote: »

BoI seem to be making some efforts to try and keep people looking to switch.
I am currently on a variable rate of 4.25% with a LTV of around 60%. I have had some level of discussion with them, and without even having a new valuation carried out they have proposed a new rate of 4.1%.

Having said that, it's still way off what I can get elsewhere, so I won't be taking them up on it, but there does seem to be some movement in general

Presumably they've reduced the standard variable rate across the board - or will be doing so soon.

AIB is 4.05% for LTV 60-80%, so reasonably comparable. Not sure what others are offering

El_Dangeroso

KBC offering 3.69% or thereabouts on LTV <80%

P_Cash

i read they have reduced variable for new customers only,

i just read that this evening,

got me thinking, im with them since 2009, and paying 4.05,

but i dont know what my ltv is

should i visit them

Chris_5339762

KBC charging 4.6% for existing customers.... wont move me to any of their other rates even when I threaten to move to AIB/BOI with about 3.6%. Crazy.

P_Cash

Chris_5339762 wrote: »

KBC charging 4.6% for existing customers.... wont move me to any of their other rates even when I threaten to move to AIB/BOI with about 3.6%. Crazy.

Shocking, held to ransom

Ive been playing around with numbers, and think i should be getting lower than 4.05% as my ltv is less than 60%

P_Cash

I'm going to lay it all out for BOI, give them first opportunity and then I'll go shopping.

How some of us have same ltv yet be on different rates, Drives me nuts,

I see fixed rates looking attractive, is that a clue for going forward

I always think if the banks make them attractive they expect rates to fall, variable like, and if they are far reaching, like 2009 then they expect rates to rise

Crumbs868

El_Dangeroso wrote: »

KBC offering 3.69% or thereabouts on LTV <80%

As another poster said KBC treat new and existing customers differently. Whatever you save with the introductory rate you pay back that and more in future years. Similar treatment as from a utility company like upc or sky except it ain't so easy to move provider

Hence why I avoided them

El_Dangeroso

Crumbs868 wrote: »

As another poster said KBC treat new and existing customers differently. Whatever you save with the introductory rate you pay back that and more in future years. Similar treatment as from a utility company like upc or sky except it ain't so easy to move provider

Hence why I avoided them

That's interesting to know. Thanks!

Aye Bosun

Interesting thread..

So question on my situation for you good folk of boards, I brought in 2011 and at the time was 60% LTV, now the prices have gone up considerably in my neighborhood and my neighbor 2 doors down sold for over 120000 more than I brought for about a month ago, therefore my LTV is now down to 40%. Same houses, in same conditions, aspect etc but I have now done a lot of work on mine, windows, insulation, heating, rewire etc. which still needs to be done on the neighbors new house.

Is is worth me going to BOI and renegotiate my variable rate? Would the even entertain me? I'm pretty clueless with this one...so would love some advice!

jethrothe2nd

Aye Bosun wrote: »

Interesting thread..

Is is worth me going to BOI and renegotiate my variable rate? Would the even entertain me? I'm pretty clueless with this one...so would love some advice!

I went to them to renegotiate based on the fact that my LTV has dropped from 90% to 60% and they moved on the interest rate without much discussion. I am in the process of having a proper valuation done now, and will go back to them for a further negotiation again depending on the results of that. Based on my experience so far with BoI, I am absolutely sure that it is worth you talking to them.

Interesting comments on KBC - as things stand now, I would get the lowest interest rate from them, but I need to weigh up the pros and cons of moving

P_Cash

I've calculated a few times on kbc, the most i can save is 51€ a month

It's nice, but would it cost me more in the long run,

As a poster said above, an introductory rate for sky or upc O2 and a mortgage company, it costs nothing to move TV or mobile provider.

Even my esb, i hop providers every 12 months to get the best price, can't do that with mortgage

Chris_5339762

Heres what I got from KBC...

Dear xxxxx,

Thank you for your email.
Unfortunately the rates which you are referring to are introductory rates for new customers.
It would not be possible to lower the variable rate on an existing mortgage.
If you have any other queries please do not hesitate to contact our customer service team on 1800 xxxxxx.

Thank you,

Kind Regards

Supercell

jethrothe2nd wrote: »

I went to them to renegotiate based on the fact that my LTV has dropped from 90% to 60% and they moved on the interest rate without much discussion. I am in the process of having a proper valuation done now, and will go back to them for a further negotiation again depending on the results of that. Based on my experience so far with BoI, I am absolutely sure that it is worth you talking to them.

Interesting comments on KBC - as things stand now, I would get the lowest interest rate from them, but I need to weigh up the pros and cons of moving

We bought at the end of 2011 and would have about the same numbers as yourself percentage wise now and are with BOI
Did they agree with you just in principle or did they ask you to get a valuation on paper first (would an estate agent do for this?).
Was thinking of moving to KBC but if BOI would reduce the variable a bit I would stay just to save the hassle.

jethrothe2nd

Supercell wrote: »

We bought at the end of 2011 and would have about the same numbers as yourself percentage wise now and are with BOI
Did they agree with you just in principle or did they ask you to get a valuation on paper first (would an estate agent do for this?).
Was thinking of moving to KBC but if BOI would reduce the variable a bit I would stay just to save the hassle.

No, they dropped it without a valuation, which I would guess means that there is probably a drop in their variable rates coming soon anyway. If they do require a valuation though, it would have to be done by someone on their approved list.

Supercell

jethrothe2nd wrote: »

No, they dropped it without a valuation, which I would guess means that there is probably a drop in their variable rates coming soon anyway. If they do require a valuation though, it would have to be done by someone on their approved list.

Great, will be giving them a call so!

gnf_ireland

Hi all
I am in a similar situation with BOI. I had an original LTV of 65% in 2011 and LTV is now 45% due to valuation rising and overpayments. Asked BOI to move to their new LTV rates for <60% and they stated absolutely not. This was via both mortgage centre and premier banking. Only option was go on fixed and then come off to 4.2% rate as opposed to 4.35% currently on

In the middle of moving to KBC currently. Yes it does cost money to do so and yes there is a risk associated with it but with current account incentive I would save 0.8% which is sizeable enough.

From my understanding of how this works there is only only LTV rate within the banks for variable mortgages but they are saying that the category you go into when you sign up is the one you stay in for the life of your nortgage. They will not put you into a new category despite your risk assessment changing due to LTV. So if I move to KBC I will be in <60% LTV category and stay in it, even if they bring out a <50% one in the future.

I don't believe they can have two different rates for LTV of <60%. I would hope the central bank would actually intervene in that case

Personally I don't believe there would be many LTV categories below 50% so imagine the current move will serve me ok for the next few years and can always move if I need to. Calculated it takes 9 months off my mortgage if I continue my current levels of overpayment factoring in moving costs.

But yes if the mortgage is small it would be difficult to justify moving !