Switching Mortgages?

bbari

That's the very reason I didn't go with KBC, the new lower rates are for new customers only but if you go with UB, the new lower rates will be offered to the existing customers also.

listermint

bbari wrote: »

That's the very reason I didn't go with KBC, the new lower rates are for new customers only but if you go with UB, the new lower rates will be offered to the existing customers also.

Surely by going with them you are a new customer.............

AlmightyCushion

listermint wrote: »

Surely by going with them you are a new customer.............

I think he means that if the rates drop in the future, after he has taken out a mortgage with KBC, then his rate won't be reduced whereas they would with Ulster Bank.

newacc2015

bbari wrote: »

That's the very reason I didn't go with KBC, the new lower rates are for new customers only but if you go with UB, the new lower rates will be offered to the existing customers also.

Why did you go with Ulster? There is a risk in a few years that they will leave, bundle up your mortgage and sell it to vulture.

AIB, Haven and EBS have rates similar to UB, but they are in it for the long haul

James Bond Junior

listermint wrote: »

So why haven't you moved ?

I did. Go back a few posts and you will see that I moved to Ulster Bank after 11 months saving 20k and taking three years off the term with an identical repayment.

bbari

newacc2015 wrote: »

Why did you go with Ulster? There is a risk in a few years that they will leave, bundle up your mortgage and sell it to vulture.

AIB, Haven and EBS have rates similar to UB, but they are in it for the long haul

I didn't go with UB, I went with AIB. UB rate is 3.10% and AIB is 3.30%. I was thinking to switch with UB as their rate is lower.

FightingIrish

PGL wrote:

Do the bank need to do the valuation or can you use an independent valuer? Do you mind me asking who is valuing your house for a cost of €130?

Hi, as someone else mentioned, the bank supplied me with a list of valuers to choose from, I chose <mod snip: see forum charter>

My current rate is quite high at 4.2 so hoping to come down to 3.15%

FightingIrish

I should also mention that this is a new service KBC launched last Dec to keep existing customers from switching.

PGL

FightingIrish wrote: »

Hi, as someone else mentioned, the bank supplied me with a list of valuers to choose from, I chose <mod snip>

My current rate is quite high at 4.2 so hoping to come down to 3.15%

Would one valuation be sufficient to use if I was talking to more than one bank?

FightingIrish

I don't know to be honest, banks may insist on their own independent valuers.

PixelTrawler

L1011 wrote: »

If you aren't re-mortgaging you do not need a broker - just phone your bank. You may need a revaluation, this should cost less than €200. I went from 4.45% to 3.1% in November with BOI, 4 years in - just look to see what deals PTSB offer currently.

In my case no revaluation was required as I had a lower LTV in the first place and the bank also applied a straight line value increase which pushed me to the <50% rate; but I believe the <80% rate was the same anyway. >80% is what usually gets hammered.

You went from 4.45% to 3.1% and that was all with BOI?
Do you go variable to fixed? Or did you threaten to leave and they gave you a reduced rate?

We're on 4.3% variable with BOI currently and just over 3 years in.

(Our LTV when we took the mortgage was 74% and house prices have gone up a bit here and we've a small amount of the capital repaid. At a guess our loan to value now would be roughly 60% ish at current values)

newacc2015

PixelTrawler wrote: »

You went from 4.45% to 3.1% and that was all with BOI?
Do you go variable to fixed? Or did you threaten to leave and they gave you a reduced rate?

We're on 4.3% variable with BOI currently and just over 3 years in.

(Our LTV when we took the mortgage was 74% and house prices have gone up a bit here and we've a small amount of the capital repaid. At a guess our loan to value now would be roughly 60% ish at current values)

I heard if you phone your bank to say get the deeds ready for transfer it is hard signal that you are switching bank. They start making serious offers as they know you are not tire kicking. But indicating that you are willing to leave

PixelTrawler

newacc2015 wrote: »

I heard if you phone your bank to say get the deeds ready for transfer it is hard signal that you are switching bank. They start making serious offers as they know you are not tire kicking. But indicating that you are willing to leave

I heard with BOI you have to be genuinely ready to move as they have wised up to simply calling their bluff so they want evidence you are really moving.
But im not sure, I never tried...

Looking at the rates table, I suspect the user in question went variable to fixed. They have a fixed rate of 3.1%...

L1011

PixelTrawler wrote: »

You went from 4.45% to 3.1% and that was all with BOI?
Do you go variable to fixed? Or did you threaten to leave and they gave you a reduced rate?

We're on 4.3% variable with BOI currently and just over 3 years in.

(Our LTV when we took the mortgage was 74% and house prices have gone up a bit here and we've a small amount of the capital repaid. At a guess our loan to value now would be roughly 60% ish at current values)

Variable to fixed. BOIs variable rates are terrible and I personally don't see them falling any time soon but I'm neither psychic or a financial adviser.

PixelTrawler

L1011 wrote: »

Variable to fixed. BOIs variable rates are terrible and I personally don't see them falling any time soon but I'm neither psychic or a financial adviser.

They sure are terrible! We regret sticking with BOI.
Did you fix for long and two questions if you dont mind:

What was involved in moving to fixed?
And what happens after - do you drop back to the full standard rate and lose any discount based on LTV?

Edit - just saw this on their site so it looks like back to the discounted rate...

"At the end of a fixed rate period, existing customers on a fixed rate can choose from our range of fixed rate options or roll to the prevailing Loan to Value Variable rate."

PGL

thanks for all the feedback folks.

Just been on bonkers website, (and played around with the LTV, lowering it to 75% which is definitely too low) and it looks like I'll have to change bank as PTSB don't appear have any offers for existing customers.....

loyatemu

I can recommend AIB - we switched to them (from BOI) and they were very helpful and their rates are among the lowest on the market.

L1011

PixelTrawler wrote: »

They sure are terrible! We regret sticking with BOI.
Did you fix for long and two questions if you dont mind:

What was involved in moving to fixed?
And what happens after - do you drop back to the full standard rate and lose any discount based on LTV?

Edit - just saw this on their site so it looks like back to the discounted rate...

"At the end of a fixed rate period, existing customers on a fixed rate can choose from our range of fixed rate options or roll to the prevailing Loan to Value Variable rate."

One signed bit of paper, which they wanted faxed - I couldn't find a working fax machine in the entire building so I dropped it in personally - quicker to walk to Mayor Street!

3 years, when expired I'll be offered the entire option of LTV and fixed/variable again. They do offer the same rates to everyone.

zl1whqvjs75cdy

As a general question (and sorry to hijack op), is it a good idea change your mortgage provider every couple of years, especially of the ltv starts to drop off towards the end of the loan?

PGL

Just a further update:

I called up PTSB (who are my current lender) to inform them I'm shopping around and they did not even try to convince me to stay with them.

I spoke to a broker via the bonkers website, who is recommending going with a fixed 2.99% mortgage with KBC for 3 to 5 years. The next best lender offering a fixed option is BOI @ 3.25%, and then AIB at 3.6%. In terms of variable, Ulster Bank & KBC are both sitting at 3.1%, followed by AIB and Haven at 3.3%.

What are people's thoughts on going with KBC? i.e. would they be a risky option in terms of leaving Ireland and selling on the mortgage?

Is fixing the mortgage a good option? The broker reckons rates will not drop any further, and when the brexit and trump factors are considered, there is a risk interest rates could rise in the foreseeable future.

Can anyone recommend an alternative to bonkers.ie?

bbari

PGL wrote: »

What are people's thoughts on going with KBC? i.e. would they be a risky option in terms of leaving Ireland and selling on the mortgage?

I can't say much about KBC leaving the country but IF the rates are dropped the day after you take out the mortgage with KBC, they will not pass the rate cut to you or other existing customers. UB clearly states that they pass on the reduced rate to existing customers, AIB doesn't state this but they have been passing on the rate cuts to the existing customers.

James Bond Junior

bbari wrote: »

I can't say much about KBC leaving the country but IF the rates are dropped the day after you take out the mortgage with KBC, they will not pass the rate cut to you or other existing customers. UB clearly states that they pass on the reduced rate to existing customers, AIB doesn't state this but they have been passing on the rate cuts to the existing customers.

KBC are cheap for a reason. Day to day banking is a pain as they don't accept cash or cheques so you still need to keep a different bank account open. Nor can you take cash out or even get a bank draft as far as I know. For the sake of a few bob a month, don't draw the hassle on yourself.

Wheety

James Bond Junior wrote: »

KBC are cheap for a reason. Day to day banking is a pain as they don't accept cash or cheques so you still need to keep a different bank account open. Nor can you take cash out or even get a bank draft as far as I know. For the sake of a few bob a month, don't draw the hassle on yourself.

I am on a 5 year fixed with KBC at 3.1%. Have a current account with over 2.5k a month being deposited so don't pay any fees. I use their current account as our joint account for mortgage payments and all bills. Myself and wife have our own separate accounts with our own banks too. KBC is fine as a second account.

James Bond Junior

Wheety wrote: »

I am on a 5 year fixed with KBC at 3.1%. Have a current account with over 2.5k a month being deposited so don't pay any fees. I use their current account as our joint account for mortgage payments and all bills. Myself and wife have our own separate accounts with our own banks too. KBC is fine as a second account.

I'm not married but for a couple I suppose it makes sense. I had a raft of other issues with them so I tend to get a bit vitriolic.. I even curse at the tv when their ads come on!

PGL

bbari wrote: »

I can't say much about KBC leaving the country but IF the rates are dropped the day after you take out the mortgage with KBC, they will not pass the rate cut to you or other existing customers. UB clearly states that they pass on the reduced rate to existing customers, AIB doesn't state this but they have been passing on the rate cuts to the existing customers.

Are you referring to the ECB rate? If so, are variable mortage rates for all banks linked to the ECB rate? Eitherway, the ECB rate is unlikely to drop, and has no link to fixed rates.

Also aren't Ulster Bank a more dodgy option given they are currently closing branches? My solicitor said that KBC stuck it out through the recession, which is a plus for them.

James Bond Junior wrote: »

KBC are cheap for a reason. Day to day banking is a pain as they don't accept cash or cheques so you still need to keep a different bank account open. Nor can you take cash out or even get a bank draft as far as I know. For the sake of a few bob a month, don't draw the hassle on yourself.

The broker told me I only need 3 transactions in the KBC account each month: 1) salary paid into account 2) mortgage repayment leaves the account, and 3) balance is transferred to my existing current account, which I intend to continue using. I presume I can do online banking with KBC, or alternatively set up a standing order?

For the sake of saving approx 13,500 euro (comparing with BOI 3.25% fixed rate) over the term of the mortgage, surely it is worth the hassle of having an extra current account?

Also what are people's views of fixed vs variable?

bbari

PGL wrote: »

Are you referring to the ECB rate? If so, are variable mortage rates for all banks linked to the ECB rate? Eitherway, the ECB rate is unlikely to drop, and has no link to fixed rates.

Also aren't Ulster Bank a more dodgy option given they are currently closing branches? My solicitor said that KBC stuck it out through the recession, which is a plus for them.



The broker told me I only need 3 transactions in the KBC account each month: 1) salary paid into account 2) mortgage repayment leaves the account, and 3) balance is transferred to my existing current account, which I intend to continue using. I presume I can do online banking with KBC, or alternatively set up a standing order?

For the sake of saving approx 13,500 euro (comparing with BOI 3.25% fixed rate) over the term of the mortgage, surely it is worth the hassle of having an extra current account?

Also what are people's views of fixed vs variable?

Yes, I'm referring to ECB rate, even though its call variable rate but KBC haven't passed on the recent rate drops to their existing customers and they said the same to me when I was shopping around for the mortgage last year.

eamondunphy

Hi guys, did you go through with switching, I'm looking to switch from ebs, think ulster bank looks good for a 3 year fix at 2.99% for me.

Going to give bonkers a ring tomorrow

radharc

Surprised nobody has mentioned the cash back offered by certain banks. IMO switching to BOI, getting 2% of the mortgage back upfront and fixing for 3 years at 3.1% is a total no-brainer.

mickoneill31

I switched to Ulster Bank a year ago.

Theyve a €1500 cash back offer. Legal fees cost €950 so I put the remainder off the mortgage.
When I switched it was 3.2%.
Earlier this year they reduced their rate to 3.1%.
Now I've just gone below 60% LTV so I've applied for the 3.0%

When I was with KBC they wouldn't consider dropping my rate to that of newer customers.
So I'm saving over €200pm.

KBC and Ulster Bank have free banking if you keep certain amounts on deposit. I've found though that paying the equivalent off the mortgage saves more than the fees.

E.g for UB if you have €3000 on deposit each month you don't pay €4pm
€3000 costs €7.5pm at 3% so I just keep overpaying my mortgage and pay the €4.

Didn't use a broker at all. Doing the sums isn't hard. I used a broker when I got my first mortgage. Now that I'm more educated in it I know at the time he didn't recommend the best option which cost us €1000s.
On the post above it still seems they can use daft logic. I don't consider KBC sticking it out during the recession to be much of a positive. They didn't pass on cuts when they happened so they were using accounts like mine to buffer their losses.

James Bond Junior

mickoneill31 wrote: »

I switched to Ulster Bank a year ago.

Theyve a €1500 cash back offer. Legal fees cost €950 so I put the remainder off the mortgage.
When I switched it was 3.2%.
Earlier this year they reduced their rate to 3.1%.
Now I've just gone below 60% LTV so I've applied for the 3.0%

When I was with KBC they wouldn't consider dropping my rate to that of newer customers.
So I'm saving over €200pm.

KBC and Ulster Bank have free banking if you keep certain amounts on deposit. I've found though that paying the equivalent off the mortgage saves more than the fees.

E.g for UB if you have €3000 on deposit each month you don't pay €4pm
€3000 costs €7.5pm at 3% so I just keep overpaying my mortgage and pay the €4.

Didn't use a broker at all. Doing the sums isn't hard. I used a broker when I got my first mortgage. Now that I'm more educated in it I know at the time he didn't recommend the best option which cost us €1000s.
On the post above it still seems they can use daft logic. I don't consider KBC sticking it out during the recession to be much of a positive. They didn't pass on cuts when they happened so they were using accounts like mine to buffer their losses.

This is why I left KBC too, the flat out refusal to budge on fees. Ulster bank are a dream to deal with and even open on a Saturday morning. I've cash and cheques to lodge which I forgot to do yesterday and can do this morning. With KBC you couldn't even cash a cheque.