Switching Mortgage advise

benny79

Hi All!

I currently have my mortgage with the EBS and have done since I got it out 13 years ago, but do all my banking with BOI. I'm on a 3.7% variable rate.. I never had a problem other than wanting to take a mortgage break for 3 months and was told I couldn't as the EBS are the only lending/bank that dont do this etc..

Anyway my bank, BOI rang me yesterday asked me am I happy with everything, service etc and would I be interested in switching mortgages, that they will give me nearly €3000 back and maybe a further €1500 down the line depending on circumstances etc but you have to get your house valued and pay legal fees etc which roughly amounts to €1200, leaving me with €1800 and all before Christmas as he said the offer only runs till then.. they are offering me a 3.5% fixed rate saving me €50 roughly a month for 3 years..his words, but I have to be approved but reckons Ill have no problem. I actually asked him was there a catch and he said no, they just buy my mortgage of EBS and I continue it on from where I left off.. and it about balancing their books and they make money on the remainder of interest I'll pay over the remainder of my mortgage..

My mate told me to stay away as he is effectively a salesman and the banks dont give you money for nothing and they will get it back some way etc..

Anyone any experience with this is it worth switching? I just read on another thread that BOI variable rates is one of the highest! so maybe its not worth my while as Ill get caught when my fixed term (they offered me 3 years @3.5%) runs out..

Trish56

Hi Benny,
Yes its true that BOI have the highest fixed rate in the market at the moment however they do in fact offer very attractive fixed rates and up to 3% to switch - 2% on cheque issue and 1% in 5 years time if you stay with them.

Looking ahead if for some reason you lost your job or your circumstances changed and when the 3 year fixed expires and they offer you a much higher rate, then you may not be in a position to switch again to a lower rate.

My advice would be to consider switching to another lender that currently offer much better variable rates and treat their existing customers the same as new customers. AIB and Haven (which is the broker arm of AIB) currently offer a variable rate of 3.10% to 3.50% depending on your loan to value and give you 2k to switch. Legal fees will cost you approx. 1k to switch and there are many Brokers around the country that don't charge fees. You will of course have to submit paperwork such as evidence of income etc. and you need to weigh this up and decide to continue paying 3.70% or switch to a lower rate from 3.10%.

benny79

Thanks very much for the advise Trish, Yeah my mate used to work in a bank and he told me not to switch as they are not going to give me money for nothing and at the end of the day hes a sales man plus I have been on a variable rate since I took out my mortgage 12 years ago and you know yourself 3 years isnt long in coming around..